The Value Added Tax (Miscellaneous Amendments to Acts of Parliament) (EU Exit) Regulations, SI 2020/1312, will preserve the VAT zero-rating of supplies of the handling of qualifying aircraft at non-customs and excise airports under VATA 1994 Sch 8 Group 8 after the Brexit transition period, and introduce a similar relief for international trains (ie those passing through the channel tunnel).
The regulations, which will be brought into force along with the bulk of other Brexit-related amendments to VAT legislation at the end of the Brexit transition period:
ensure that supplies of the handling of qualifying aircraft and the handling and storage of goods carried by them, continue to be zero-rated at airports which are not designated for landing and departure of aircraft for the purposes of customs and excise legislation;
introduce a new similar relief for the handling of international trains (and goods carried in them) – including a power for HMRC to specify in a Notice places where the handling of an international train takes place to benefit from the VAT zero-rate; and
remove the VAT exemption from supplies of pension fund management services for funds established in the EU.
Examples of handling services for aircraft include landing, parking or housing fees, airport apron services, airport navigation service charges, security and fire services and the supply of crew members (seeVAT Notice 744C).
The Value Added Tax (Miscellaneous Amendments to Acts of Parliament) (EU Exit) Regulations, SI 2020/1312, will preserve the VAT zero-rating of supplies of the handling of qualifying aircraft at non-customs and excise airports under VATA 1994 Sch 8 Group 8 after the Brexit transition period, and introduce a similar relief for international trains (ie those passing through the channel tunnel).
The regulations, which will be brought into force along with the bulk of other Brexit-related amendments to VAT legislation at the end of the Brexit transition period:
ensure that supplies of the handling of qualifying aircraft and the handling and storage of goods carried by them, continue to be zero-rated at airports which are not designated for landing and departure of aircraft for the purposes of customs and excise legislation;
introduce a new similar relief for the handling of international trains (and goods carried in them) – including a power for HMRC to specify in a Notice places where the handling of an international train takes place to benefit from the VAT zero-rate; and
remove the VAT exemption from supplies of pension fund management services for funds established in the EU.
Examples of handling services for aircraft include landing, parking or housing fees, airport apron services, airport navigation service charges, security and fire services and the supply of crew members (seeVAT Notice 744C).
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