VATPOSG4140 - Supplies on board ships, aircraft and trains: Northern Ireland and EU: on-board consumption

We treat supplies of goods for on-board consumption on journeys between Northern Ireland and the EU as taking place outside the United Kingdom and so outside the scope of VAT.

When sold from an on-board bar or restaurant, all sales of food, drink and tobacco are treated as being for immediate consumption (although, as smoking is not permitted on board aircraft or trains, no sales of tobacco products qualify as being for consumption on board). Confectionery and soft drinks sold anywhere on board a ship, aircraft or train are treated as goods consumed on board and relieved of VAT; as long as it is self-evident that the products are of a type that are more suitable for on-board consumption than gift purchase or home use. Products that by virtue of their nature of packaging are clearly not suitable to be treated as consumed on board (such as boxes of chocolates or tins of biscuits) are subject to VAT in the normal way, even if these products are actually consumed on board the ship, aircraft or train.