Zero-rating Goods and Services Supplied in Connection with Means of Transport – Article 35 – VAT Executive Regulations

Article 35 – Zero-rating Goods and Services Supplied in Connection with Means of Transport

The Goods and Services related to the supply of the means of transport mentioned in Article 34 of this Decision shall be subject to the zero rate if they are any of the following:

1. Goods, except fuel or other oil or gas products, that are supplied in the course of operating, repairing, maintaining, or converting means of transport in any of the following cases:
   1. The Goods shall be incorporated into, affixed to, attached to, or form part of those means of transport.
   2. The Goods are consumable Goods that become unusable or worthless as a direct result of being used in the operation, repair, maintenance, or conversion process.
2. Services which are supplied directly in connection with means of transport referred to in Article 34 of this Decision for the purposes of operating, repairing, maintaining, or converting those means of transport.
3. Services which are supplied directly in connection with parts and equipment of a means of transport referred to in Article 34 of this Decision for the purpose of repairing and maintaining those parts and equipment, provided that any of the following applies:
   1. The services are carried out on board the means of transport.
   2. The part or equipment is removed for repair or maintenance and is subsequently replaced in the same means of transport.
   3. The part or equipment is removed for repair or maintenance and is subsequently held in stock for future use as spares in the same means of transport or another means of transport.
   4. The part or equipment cannot be repaired and is exchanged for an identical part or equipment.