# The Value Added Tax (Transport) Order 1990, Note: Explanatory note


(This note is not part of the Order)
This Order varies, with effect from 1st May 1990, items 3, 4, 5, 6, 9 and 11 of and Notes (1) and (3) to Group 10 of Schedule 5 to the Value Added Tax Act 1983 (c. 55). It also adds a new Note (2A) to that Group.
Article 3 of the Order extends item 3 so that supplies of the kind described in that item made to any charity providing rescue or assistance at sea are zero-rated. The article also extends zero-rating to the construction for such a charity of slipways for the launching and recovery of lifeboats.
Articles 4 and 5 amend items 4 and 5 so that item 4 deals wholly with passenger transport and item 5 deals wholly with freight transport. Supplies of passenger transport services performed outside the United Kingdom have been deleted from item 5 since, by virtue of article 3(a) of the Value Added Tax (Tour Operators) (Amendment) Order 1990 (S.I. 1990/751), such supplies fall outside the scope of United Kingdom VAT.
Article 6 extends zero-rating to handling services for ships or aircraft outside the United Kingdom and to the storage of ship or aircraft cargo at United Kingdom ports or airports.
Article 7 deletes words which are otiose.
Article 8 removes zero-rating for services ancillary to passenger transport outside the United Kingdom. Such services are by virtue of article 3(a) of the Value Added Tax (Tour Operators) (Amendment) Order 1990 outside the scope of the tax.
Article 9 excludes from items 1 and 2 certain supplies constituting services under a charter of a ship or aircraft. Passenger transport services within the United Kingdom which are thus excluded from items 1 and 2 and which are services of a description included in item 4 of this Group are, in any case, zero-rated under that item.
Article 10 requires that, for lifeboats and launching and recovery equipment to be zero-rated under item 3, the supplier must obtain from the recipient a declaration that the supplies are of a description in item 3 and are being made to a charity providing rescue or assistance at sea.
Article 11 varies the definition of lifeboat in Note (3).

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Source: https://www.legislation.gov.uk/uksi/1990/752/note (the official version)
Page: https://openlegislation.uk/value-added-tax-transport-order-1990/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.