Guidelines on the VAT 0% rate for scheduled inter-island sea transport
2 August 2024
Item 11(b) of Part One of the Fifth Schedule to the VAT Act applies a zero rate of VAT (exemption with credit) to the supply of: “scheduled inter-island sea transport of passengers by authorised carriers and other scheduled sea transport of passengers recognised as such by the Commissioner.”
The Office of the Commissioner for Tax & Customs has issued a determination on the criteria to be satisfied for the recognition of services as “scheduled inter-island sea transport of passengers by authorised carriers and other scheduled sea transport of passengers”.
An application for recognition under the guidelines is to be made to the Commissioner for Tax & Customs.