On Board Consumption

Created on 14 July 2005

Supplies for consumption on board ships and aircraft have traditionally always been free of all taxes and duties. The UKTRF is fully committed to defending the continuation of this practice as it is believed that the EU Commission will at some stage propose that duty and tax should be applied to such supplies.

Ships supplies (for consumption on board) have historically always been free of all tax and duties, and this exemption was extended to also cover similar supplies to aircraft. Despite the abolition of duty and tax free sales within the EU on 1 July 1999, EU Member States may still permit supplies for consumption on board ships and aircraft to be made free of tax and duty, and the vast majority of Member States continue to do so. This applies even to supplies for consumption on intra-EU journeys, although no duty and tax free sales may be made on such journeys. It is widely believed that the Commission would ideally prefer such supplies to be subject to tax and duty, and although this is not a priority issue on their agenda, we must expect that at some future date, this practice will be threatened. The UKTRF believes that it is a fundamental principle that supplies for consumption on board ships and aircraft should continue to be free of tax and duty and will guard against any initiative to change this practice.

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