SolvedVTRANS130200 | Parts and equipment for ships and aircraft: Zero-rating?
From HM Revenue & Customs · VAT Transport
What are the conditions for zero-rating?
To qualify for zero-rating, the parts and equipment must be:
of a kind ordinarily installed or incorporated in the propulsion, navigation or communications systems, or the general structure of a qualifying ship or aircraft; and
for incorporation or installation in a qualifying ship or aircraft; and
if your customer is a Government department or any part of the Scottish Administration, installed or incorporated:
in the course or furtherance of a business carried on by that department; or
in qualifying ships or aircraft used for providing rescue or assistance at sea.
Which parts and equipment qualify for zero-rating?
Notice 744C section 7 sets out examples of parts and equipment that can be zero-rated.
Parts and equipment excluded
Notice 744C section 7 sets out examples of parts and equipment that are not zero-rated.
Supply chains
VTRANS110800 sets out how zero-rating of ship and aircraft parts many be permitted to flow down a supply chain.