Part 2Other taxes and duties

Value added tax

21Supplies of aircraft etc

1

Schedule 8 to VATA 1994 (zero-rating) is amended as follows.

2

In Note (A1) of Group 8 (transport: definition of “qualifying aircraft” etc), for paragraph (b) substitute—

b

a “qualifying aircraft” is any aircraft which —

i

is used by an airline operating for reward chiefly on international routes, or

ii

is used by a State institution and meets the condition in Note (B1).

3

After that Note insert—

B1

The condition is that the aircraft—

a

is of a weight of not less than 8,000 kilograms, and

b

is neither designed nor adapted for use for recreation or pleasure.

C1

In Note (A1)(b)—

  • “airline” means an undertaking which provides services for the carriage by air of passengers or cargo (or both);

  • “State institution” has the same meaning as in Part B of Annex X to the Council Directive 2006/112/EC on the common system of value added tax (transactions which member States may continue to exempt).

4

The amendments made by this section have effect in relation to supplies made, and acquisitions and importations taking place, on or after 1 January 2011.