VTRANS170200 - Services supplied to overseas businesses in connection with non-zero-rated ships and aircraft: Services zero-rated under item 11(b)
Supplies before 1 January 2010
Item 11(b) zero-rates the following services in respect of non-qualifying ships or aircraft, when provided to customers belonging outside the UK, who receive the supply for the purpose of a business carried on by them.
- ship or aircraft handling performed in a port or customs and excise airport under item 6(b) (also see VTRANS140000)
- air navigation services under item 6A (also see VTRANS150000)
- ship or aircraft surveys under item 9 (also see VTRANS160000) or
- the making of arrangements for the supply of any ship or aircraft under item 10(a) (also see VTRANS190000).
By virtue of Group 8, legal Note (7), the zero rate applies to all ships and aircraft, not just those which are themselves zero-rated under items 1 or 2 of Group 8.
You should determine the place of belonging of customers using the rules given in VATPOSS and in Notice 741.
Supplies from 1 January 2010
On 1 January 2010 the place of supply of services general rule came into being; this moved the place of supply of the most services to the place where a business customer belongs and outside the scope of VAT. The services coved by this item are general rule services (See VATPOSTR).