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HMRC internal manual

VAT Transport

Air navigation services: Law

The law applying the zero-rate to air navigation services is in the VAT Act 1994, Schedule 8, Group 8, item 6A and Note 6A. These were inserted into Group 8 as new items by the Value Added Tax (Transport) Order 1995, SI 1995/653, and came into effect on 1 April 95.

6A. Air navigation services


A1(b) a “qualifying aircraft” is any aircraft of a weight of not less than 8,000 kilogrammes which is neither designed nor adapted for use for recreation or pleasure.

(6A) “Air navigation services” has the same meaning as in the Civil Aviation Act 1982.

(7) Except for the purposes of item 11, paragraph (a) of item 6, item 6(A), item 9 and paragraph (a) of item 10 only include supplies of services where the ships or aircraft referred to in those paragraphs are qualifying ships, or as the case may be, aircraft.

Group 8 item 6A is based on Principal VAT Directive (Directive 2006/112) Article 148(g).

  1. Member States shall exempt the following transactions:

(g) the supply of services, other that those referred to in point (f), to meet the direct needs of the aircraft referred to in point (e) or their cargoes.