VAT Zero rating for passenger transport

[Rogue Wave]

My undestanding of the situation is as folows:

A coded rib is not a commercial vessel, it is a rib that has been approved by the MCA to carry fare paying passengers.

A commercial vessel and it can be a rib has to have seating for a minimum of twelve and then needs to be qualified under a different part of the code which is much stricter and requires more frequent inspection ( the same as ferries and Liners).

I don't believe you can be coded for more passengers/crew than you have seats for.

please let me know if I am wrong as Zero rating is a lot less hassle than VAT returns

[DGR]

Rogue,

From memory, the Customs and Excise notice (744a?) refers to vessels having 10 seats or more, and it being used commercially, rather than it being defined as a 'commercial vessel'.

The accountant I spoke to compared it to a taxi van - you can buy a 12 seat Land Rover and pay VAT, but operate it as a taxi and you can get zero VAT rated (i.e pay no VAT on the vehicle, and charge no VAT to you customers).

The difference appears a bit pedantic, but I'm going to try and go this route (with the RIB!!) - so I'll let you know how I get on......

Dylan...