VATPOSS11200 - Hire of means of transport: Law

UK Law - Schedule 4A paragraph 3 VAT Act 1994

Hiring of means of transport

(1) A supply of services consisting of the short-term hiring of a means of transport is to be treated as made in the country in which the means of transport is actually put at the disposal of the person by whom it is hired.

But this is subject to sub-paragraphs (3) and (4).

(2) For the purposes of this Schedule, the hiring of a means of transport is “short-term” if it is hired for a continuous period not exceeding—

  • if the means of transport is a vessel, 90 days, and
  • otherwise, 30 days.

(3) Where—

  • a supply of services consisting of the hiring of a means of transport would otherwise be treated as made in the United Kingdom, and
  • the services are to any extent effectively used and enjoyed outside the United Kingdom,

the supply is to be treated to that extent as made in that country.