Air navigation services: Purpose of the law
Item 6A of Group 8 zero-rates air navigation services supplied in respect of qualifying aircraft, as defined in Note A1(b) to the Group. Air navigation services for other aircraft are standard-rated, except where supplied to businesses belonging outside the UK, see VTRANS170000.
For the purposes of item 6A air navigation services has the same meaning as in section 105(1) of the Civil Aviation Act 1982 and includes the provision of information and directions furnished, issued or provided with the navigation or movement of aircraft for flights to, from and within the UK.
Item 6A was introduced to remove a competitive distortion affecting UK airlines when the Civil Aviation Authority was granted taxable status in respect of its en route air navigation services from 1 April 1995. The item only affects supplies by the Authority.