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Introduction to the transport and freight sector

This paragraph considers the VAT status of various activities which fall under the general heading of 'transport and freight'. It looks primarily at the following areas:

1. Ìý

   •ÌýÌýÌýÌý supplies of means of transport

2. Ìý

   •ÌýÌýÌýÌý supplies in the passenger transport sector

3. Ìý

   •ÌýÌýÌýÌý supplies in the freight transport sector

Liability of supplies of means of transport (and related supplies)

Whilst by default supplies will be standard-rated, VAT relief applies to the supply of certain means of transport. Common areas where relief may apply are described under the headings that follow.

Supplies of ships and aircraft

Zero-rating applies to the supply of 'qualifying ships' and 'qualifying aircraft'. The scope of this relief is outlined at V4.251A.

Goods supplied as ships' stores

A zero-rating is available for supplies made directly for use on a voyage or flight whose eventual destination is outside the UK. This includes