VTRANS130100 - Parts and equipment for ships and aircraft: Law

UK law

»Ê¹ÚÌåÓýapp law applying the zero-rate to supplies of parts and equipment for ships and aircraft is in the VAT Act 1994, Schedule 8, Group 8, items 2A and 2B, and Note 2A. »Ê¹ÚÌåÓýappse were introduced as new items in Group 8 with effect from 1 January 1996 by the Value Added Tax (Ships and Aircraft) Order 1995, SI 1995/3039.

2A. »Ê¹ÚÌåÓýapp supply of parts and equipment, of a kind ordinarily installed or incorporated in, and to be installed or incorporated in,-

  1. the propulsion, navigation or communication systems; or
  2. the general structure of a qualifying ship or, as the case may be, aircraft.

2B. »Ê¹ÚÌåÓýapp supply of life jackets, life rafts, smoke hoods and similar safety equipment for use in a qualifying ship or, as the case may be, aircraft.

Note:

(2A) Items 2A and 2B do not include the supply of parts and equipment to a Government department unless -

  1. they are installed or incorporated in the course of a supply which is treated as being made in the course or furtherance of a business carried on by the department; or
  2. the parts and equipment are to be installed or incorporated in ships or aircraft used for the purpose of providing rescue or assistance at sea.

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