VATPOSG4130 - Supplies on board ships, aircraft and trains: Northern Ireland and EU: Introduction

The special rules apply to goods supplied during the course of passenger transport (other than those supplied as part of a pleasure cruise package), between relevant countries. These rules apply to journeys with stops in different relevant countries. Consequently, they do not apply to wholly domestic journeys within Northern Ireland (to which the normal place of supply rules apply - see VATPOSG3300) or to journeys to or from destinations outside the EU including with the rest of the UK. Journeys to and from non-EU locations are termed ‘international journeys’ in this guidance.

A journey involving both relevant countries and third country legs is effectively divided up into appropriate segments. For example in the case of a journey from France to the USA via Northern Ireland, the first leg from France falls within the scope of the rules, whereas the leg from the Northern Ireland to the USA is treated as an international journey (see VATPOSG4200). Similarly, a journey, say involving legs between Northern Ireland - Germany - Switzerland - France - Italy is treated as two separate intra-Community journeys (i.e. Northern Ireland to Germany and France to Italy) with the middle leg to and from Switzerland being treated as an international journey.

The return leg of a journey which starts and finishes in the same Member State is treated as a separate journey. So, for example, a ferry service between Northern Ireland and France have separate out and back journeys. In cases where there is more than one stop between the common point of departure and arrival, the return leg is the part of the journey involving relevant countries in which the means of transport departed from has previously stopped.

So for example a journey comprising Northern Ireland- France - Germany – Northern Ireland, the return leg is Germany - Northern Ireland. But if the journey were Northern Ireland - Belgium - Netherlands - Belgium – Northern Ireland, the return leg would be Netherlands - Belgium – Northern Ireland.

In applying these rules a distinction is made between goods supplied for on-board consumption (see VATPOSG4140) and those to be taken off by passengers when they disembark (see VATPOSG4150).