Value Added Tax Act 1994 Schedule 4A paragraph 2

Passenger transport

Schedule 4A paragraph 2 sets out the rules for determining where a supply of passenger transport services is treated as taking place for VAT purposes, including special provisions for journeys that briefly leave a country's territory and for pleasure cruises.

• Passenger transport services (including accompanying luggage and motor vehicles) are treated as supplied in the country where the transportation takes place, split proportionally by distance if more than one country is involved.
• A journey between two points within the same country is treated as taking place wholly in that country, even if the route briefly passes outside its territorial jurisdiction, provided the transport does not stop, dock or land in another country (except in an emergency or involuntarily).
• A pleasure cruise counts as passenger transportation, so all services provided as part of the cruise are treated as supplied in the same place as the transport itself.
• The term "pleasure cruise" includes cruises undertaken wholly or partly for education or training purposes.