Services supplied to overseas businesses in connection with non-zero-rated ships and aircraft: Law
The law relating to the liability of services supplied to overseas businesses in connection with ships and aircraft which are not themselves zero-rated because they are non-qualifying is in the VAT Act 1994, Schedule 8, Group 8, item 11(b).
- The supply-
(b) to a person who receives the supply for the purpose of a business carried on by him and who belongs outside the United Kingdom, of services of a description specified in paragraph (a) of item 6, item 6A, item 9 or paragraph (a) of item 10 of this Group.
(7) Except for the purposes of item 11, paragraph (a) of item 6, item 6A, 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 11(b) is based on Principal VAT Directive (Directive 2006/112) Article 148(d) and (g).
148 Member States shall exempt the following transactions:
(d) the supply of services other than those referred to in point (c), to meet the direct needs of the vessels referred to in point (a) or of their cargoes;
(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.