VFR05100 - Hydrocarbon oils: US forces
Supplies of Hydrocarbon oils to US forces
Supplies to AAFES
Duty and VAT free fuel for use in privately owned vehicles of US service personnel
Refund of duty on road fuel used by contractors for the conveyance of US forces personnel and school children
Refund of duty on road fuel used by traders in fulfilment of other US government contracts
Supplies of Hydrocarbon oils to US forces
Supplies of aviation fuel, motor spirit and heavy oil may be delivered from warehouse to the US forces free of duty and VAT, if it is exclusively for their official use. You should follow the procedures in HCOTEG212000. .
Supplies to AAFES
Supplies of motor spirit and heavy oil for road fuel use may be delivered from warehouse to [the US Base in the UK] AAFES free of duty and VAT. You should follow the procedures in HCOTEG212000.
Duty and VAT free fuel for use in privately owned vehicles of US service personnel
Entitled members of the US forces may purchase limited quantities of fuel, duty and VAT-free from the Base Exchange authorities, for use in their private vehicles on duty journeys. Sales are made from pumps owned by the Exchange authorities situated within the bases.
‘Duty journeys’ include journeys made between home and place of duty. Private motoring is excluded.
Entitled members of the US Force who have no easy access to the on base US fuel facility may be authorised to purchase fuel under the US off base fuel program.
Under the US off base fuel program, entitled members may purchase limited quantities of fuel from authorised commercial fuel facilities in the UK. Relief is not available at the time of purchase neither is it available for the purchase of any other good(s). .
HMRC will remit or refund any VAT and duty directly to the US Forces Authority under agreed arrangements.
Duty and VAT-free fuel (petrol or diesel) is subject to a monthly ration.
Refund of duty on road fuel used by contractors for the conveyance of US forces personnel and school children
A VAT registered business that have an official contract with the US forces for transporting their personnel and school children, may claim relief from HMRC, by way of a refund of the excise duty paid on road fuel used in pursuance of the contract. Information for businesses contracting with the US Forces is set out in HMRC public notice 431, section 3.6 https://www.gov.uk/government/publications/notice-431-visiting-forces.
Once a contract is initially agreed between the VAT registered business and the US forces, but before the service is provided, a copy of the contract accompanied by a letter requesting approval, should be sent to the Mineral Oils Relief Centre (MORC). The procedure explained in Claims by UK traders for the repayment of duty or road fuel used in fulfilment of US contracts for the conveyance of personnel and school children should be followed. If satisfactory, a letter as set out at VFR12020 will be issued to the business.
Refund of duty on road fuel used by traders in fulfilment of other US government contracts
Businesses that have official contracts with the US forces (for example, for carriage of goods) may claim a repayment of the excise duty paid on the road fuel used in fulfilment of the contract, where the journeys are performed exclusively for the purpose of the contract. Work carried out by subcontractors and mixed loads will not be eligible for a refund.
HMRCs procedures are set out here: Claims by UK traders for the repayment of duty on road fuel used in fulfilment of US government contracts other than for the carriage of personnel.