Tax chargeable on certain designated travel services10

1

The application of the Value Added Tax Act 1983 shall, in relation to those supplies made by a tour operator, which are described in the following paragraphs, be modified in accordance with those paragraphs.

1A

Where a tour operator acquires certain services, that is to say transport of passengers—

a

within or outside the United Kingdom—

i

in any vehicle, ship or aircraft designed or adapted to carry not less than twelve passengers, or

ii

on any scheduled flight, or

b

from a place within to a place outside the United Kingdom or vice versa

in order to supply them as a designated travel service or as part of such a service, the rate at which tax shall be charged shall be nil on that portion of the value of the designated travel service supplied which is attributable to those services.