My client is a UK company which repairs and maintains small aircraft. He has a customer in Guernsey who will fly the aircraft to the UK, my client will do the annual maintenance review on it and then the plane will be flown back to Guernsey. I was under the impression that physical services provided to Channel Islands customers in the UK were subject to VAT but his customer has been advised by other people in the same situation that they do not pay VAT because 'it is an aircraft that is being exported'. Clearly it is not actually being 'exported' but is there any provision for the fact that it is an aircraft? I couldn't see any other than for commercial aircraft that operate on predominantly international routes, which I don't think light aircraft would come in to.
10th Feb 2020
VAT on aircraft repair for Guernsey customer?
My client is repairing an aircraft, in the UK, for a Guernsey registered customer.
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