VTRANS130200 - Parts and equipment for ships and aircraft: Zero-rating?

What are the conditions for zero-rating?

To qualify for zero-rating, the parts and equipment must be:

  • of a kind ordinarily installed or incorporated in the propulsion, navigation or communications systems, or the general structure of a qualifying ship or aircraft; and
  • for incorporation or installation in a qualifying ship or aircraft; and
  • if your customer is a Government department or any part of the Scottish Administration, installed or incorporated:
  • in the course or furtherance of a business carried on by that department; or
  • in qualifying ships or aircraft used for providing rescue or assistance at sea.

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Which parts and equipment qualify for zero-rating?

Notice 744C section 7 sets out examples of parts and equipment that can be zero-rated.

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Parts and equipment excluded

Notice 744C section 7 sets out examples of parts and equipment that are not zero-rated.

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Supply chains

VTRANS110800 sets out how zero-rating of ship and aircraft parts many be permitted to flow down a supply chain.