VTRANS021100 - Zero-rating of passenger transport: Transport of vehicles on ships, aircraft or trains - passengers or freight?
If vehicles are transported or ferried on ships, aircraft or trains, the supply by the operator will be either one of passenger or freight transport.
»Ê¹ÚÌåÓýapp carriage of a bus, coach or taxi with passengers is regarded as passenger transport, whether or not charged at the private car rate by the operator, and is zero-rated provided the supply would otherwise qualify for zero-rating under Group 8.
»Ê¹ÚÌåÓýapp transportation of unaccompanied vehicles, including buses and coaches, and trailers, at whatever rate charged, is treated as a supply of freight transport, and is not normally zero-rated (but see below).
»Ê¹ÚÌåÓýapp treatment of a supply in respect of all other vehicles is based on the rate charged as illustrated below.
Passenger transport
»Ê¹ÚÌåÓýapp transport of:
- vehicles with drivers or passengers charged under the private car rate, including motorcycles, cars, caravans and trailers;
- small commercial vehicles charged under the private car rate whether carrying passengers or freight.
Supplies of these services are treated as passenger transport and are zero-rated under Group 8, item 4(a).
Freight transport
»Ê¹ÚÌåÓýapp transport of:
- vehicles charged at a rate appropriate to driver accompanied vans, lorries, buses and coaches (without passengers);
- drivers accompanying such vehicles;
- all unaccompanied vehicles and trailers whatever the rate charged.