Liability ― aircraft and ships

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note looks at the liability of supplies of, and connected with, aircraft and ships.

For an overview of the concept of VAT liability generally, see the Liability ― overview guidance note.

For in-depth commentary on the legislation and case law on supplies of and connected with aircraft and ships, see De Voil Indirect Tax Service V4.251-V4.251C.

Aircraft, ships and liability ― the basics

The supply of certain ‘qualifying’ aircraft and ships is zero-rated. This zero-rate extends to the lease and hire of qualifying ships and aircraft. However, when a ship of aircraft is hired (or ‘chartered’) there are often difficulties in determining if what is being supplied is really a ship or aircraft or some sort of passenger transport, freight or other service (and therefore subject to different VAT liability rules and considerations).

There are detailed provisions in the VAT legislation for determining whether an aircraft or ship is ‘qualifying’ and these provisions need to be reviewed

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

TAKE A FREE TRIAL

Popular Articles

Trusts and Inheritance Tax

Settlor-interested trusts

Settlor-interested trustsWhat is a settlor-interested trust?A settlor-interested trust is one where the person who created the trust, the settlor, has kept for himself some or all of the benefits attaching to the property which he has given away. A straightforward example is where a settlor

14 Jul 2020 13:38 | Produced by Tolley Read more

Corporation Tax

Qualifying charitable donations

Qualifying charitable donationsCompanies can obtain corporation tax relief for qualifying payments or certain transfers of assets to charity under the qualifying charitable donations regime. Definition of qualifying charitable donationThe definition of ‘qualifying charitable donations’

14 Jul 2020 13:03 | Produced by Tolley Read more

Employment Tax

Classes of NIC and who pays them

Classes of NIC and who pays themClass 1 NICClass 1 NIC is payable on earnings paid to an employed worker which derive from, or are treated as deriving from, an employed earner’s employment in the UK. There are two kinds of Class 1 NIC, primary contributions for which the employee is liable and

14 Jul 2020 11:13 | Produced by Tolley in association with Jim Yuill at The Yuill Consultancy Read more

Brexit

UU��ֱ��