Value Added Tax Act 1994 section 13A

Long-term hiring of means of transport

Section 13A establishes the rules for determining the place of supply for VAT purposes when a means of transport is hired on a long-term basis to a non-business person.

• When a non-business person hires a means of transport long-term, the supply is treated as made in the country where the recipient belongs (i.e. where they are established or reside).
• An exception applies for pleasure boats: if a pleasure boat is hired long-term, the supply is treated as made where the boat is actually put at the recipient's disposal, provided this is at the supplier's business establishment or another fixed establishment of the supplier.
• Long-term hiring is defined as any hiring that is not short-term (short-term being defined elsewhere as continuous possession or use for no more than 30 days, or 90 days for vessels).
• These rules are subject to certain overriding provisions concerning the use and enjoyment of services, which may shift the place of supply to reflect where the service is actually consumed.