1. This Order may be cited as the Value Added Tax (Place of Supply of Goods) Order 1992 and shall come into force on 1st January 1993.

2. The rules for determining where a supply of goods is made shall be varied in accordance with the following provisions of this Order.

3. In this Order-

• "Community transport" means the transportation of passengers between the point of departure and the point of arrival in the course of which-

  (a)

  there is a stop in a member State other than that in which lies the point of departure; and

  (b)

  there is no stop in a country which is not a member State;

• "homeward stage" means that part of the return trip which ends at the first stop in the country in which the return trip commenced and which involves only such other stops, if any, as are in member States where there have previously been stops (in the course of that return trip);

• "pleasure cruise" includes a cruise wholly or partly for the purposes of education or training;

• "point or arrival" means the last place in the member States where it is expected that passengers who have commenced their journey at a place in a member State will terminate their journey or, where there is to follow a leg which will involve a stop in a place outside the member States, the last such place before such leg is undertaken;

• "point or departure" means the first place in the member States where it is expected that passengers will commence their journey or, where there has been a leg which involved a stop in a place outside the member States, the first such place after such leg has been completed;

• "return trip" means any journey involving two or more countries where it is expected that the means of transport will stop in the country from which it originally departed.

4. Subject to the following provisions of this Order, where goods are supplied on board a ship, aircraft or train in the course of a Community transport, those goods shall be teated as supplied at the point of departure.

5. Subject to the following provisions of this Order, any goods supplied on board a ship or aircraft in the course of a Community transport, for comsumption on board shall be teated as supplied outside the member States.

6. Fore the purposes of this Order-

(a)part of transportation where it is expected that a different means of transport will be used shall be treated as separate transportation; and

(b)the homeward stage of a return trip shall be treated as separate transportation.

7. This Order shall not apply to any goods supplied as part of a pleasure cruise.

Explanatory Note

(This note is not part of the Order)

This Order, which comes into force on 1st January 1993, implements Article 8(1)(c) of EC Directive 77/388/EEC (OJ No. L145, 13.6.77, p.1) as amended by EC Directive 91/680/EEC (OJ No. L376, 31.12.91, p.1). It is part of the package of new measures necessary as a result of the abolition of fiscal frontiers between EC member States from that date.

The Order applies to goods supplied on board ships, aircraft and trains engaged in the intra-Community transportation of passengers and provides for the place of supply of those goods to be the member State in which the transportation commenced. However, goods supplied for consumption on board ships and aircraft are treated as supplied outside the Community.