VAT on supply of means of transportation (a bus or train) that is to be used for public transportation
This Public Clarification VATP007 impacts upon the VAT liability of the supply of the VEHICLES THEMSELVES, and does not affect the VAT liability of TRANSPORTATION SERVICES.
Q: To which all supplies do this clarification apply?
According to Clause 3 of Article 34 of the Executive Regulations, one of the categories of a means of transport which shall qualify for zero rating is “A supply of a bus or train that is designed or adapted to be used for public transportation of 10 or more passengers”.
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