VTRANS140100 - Handling of ships, aircraft and railway vehicles: Law

The law applying the zero-rate to services of handling ships and aircraft is in the VAT Act 1994, Schedule 8, Group 8, item 6(a) and Notes 5, 6 and 7:

6. Any services provided for -

(a) the handling of ships, aircraft or railway vehicles

(i) in a port, customs and excise airport or international railway area, or

(ii) outside the United Kingdom;

Note:

(5) Item 6 does not include the letting on hire of goods.

(6) (a) “Port” and “temporary storage facility” have the same meanings as in the Management Act.

(6)(b) “international railway area” means–

(i) any place which may be designated as a railway customs area by virtue of section 26(1ZB) of the Management Act, or

(ii) such other place relating to international rail travel as may be specified in a notice published by the Commissioners;

(6)(c) “railway vehicle” has the same meaning as in section 83 of the Railways Act 1993.

Further legal notes also restrict the application to qualifying ships and aircraft in certain circumstances: see VTRANS140200.

References to “international railway area” and “railway vehicle” and therefore the zero rate, only apply from the end of the transition period (31 December 2020).