Value Added Tax Act 1994 Schedule 4A paragraph 3

Hiring of means of transport

Section 3 of Schedule 4A establishes the place of supply rules for the hiring of means of transport, distinguishing between short-term and long-term hire and applying effective use and enjoyment provisions.

• Short-term hire of a means of transport is treated as supplied where the vehicle, vessel or other transport is physically put at the disposal of the hirer.
• "Short-term" means a continuous period of up to 90 days for vessels, or up to 30 days for all other means of transport.
• Where hire that would otherwise be treated as supplied in the UK is effectively used and enjoyed outside the UK, the supply is treated as made outside the UK to that extent.
• Conversely, where hire that would otherwise be treated as supplied outside the UK is effectively used and enjoyed in the UK, it is treated as made in the UK to that extent.

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