#Charter vessel meaning driver#

Where a supplier A supplies a means of transport with a crew to a customer B who in turn supplies a transport service to a third party C, the supply by A to B will be the hiring of a means of transport and the supply by B to C transport.Which any given supply is will largely be a matter of fact.

This case sets out the premise that a supply of a crewed ship or aircraft can either be a supply of that ship or aircraft as a means of transport or as a supply of a transport service but as mutually exclusive concepts. In that regard, вЂ¦вЂ¦, a chartering contract differs from a contract for the carriage of goods in that it requires one party, the ship-owner, to make available to the other party, the charterer, all or part of the vessel, whereas, in the case of a contract for the carriage of goods, the undertaking which the carrier assumes towards the customer relates only to the transport of those goods. In particular, that court must take account of the terms of the contract concluded between the parties and the specific nature and content of the service provided in order to determine whether that contract satisfies the conditions of a chartering contract within the meaning of Article 15(5) of the Sixth Directive.ДЈ8. It nevertheless falls to the referring court to take into account the relevant circumstances in which the chartering transaction at issue in the main proceedings took place, to seek its characteristic elements in order to be able to decide if that transaction should be considered as chartering or as a provision of services for the carriage of goods.

It thus follows from the wording of that article that treating those contracts as equivalent, in order to bring them within the same VAT scheme, has no basis in the system of exemptions established by the Sixth Directive.ДЈ7. The exemption for chartering vessels used for navigation on the high seas was laid down in Article 15(5) of the Sixth Directive (Art 148(a) of the PVD), while the exemption for services relating to the carriage of goods is governed by Article 15(13) (Art 146(1)(e) of the PVD). The Sixth Directive has reserved different legal schemes for those two types of contract, namely chartering contracts and those relating to the provision of transport services. The ECJ case of Navicon C-97/06 held thatДЈ5. taxi above) which can be seen as the supply of transport or the supply of a means of transport and both can be generally termed a вЂњcharterвЂќ within the industry as set out above. Where the difficulty has always been is the supply a crewed ship or aircraft (q.v. Equally the hire of a ship or aircraft without crew will be a supply of a means of transport. Generally the supply of ticketed or scheduled journeys will clearly be a supply of transport.

Self-drive hire is a bareboat or dry charter where you are fully in control.

This can have the characteristics of a hire but it can also has the characteristics of transportation.

#Charter vessel meaning driver#

A taxi where you instruct a driver what to do but he is in control.A bus trip is transportation where you have no control over where it goes and when.The following is intended as a guide to illustrate the distinctions between hiring of a means of transportation and of transportation.

This section will also clarify the circumstances where a supply of a ship or aircraft with a crew can be treated as a hire of a means of transport.Д«ecause of the interaction between the various principles involved, this section deals with both place of supply and liability. To try and clarify the matter this section will generally refer to the supply of the hire of a ship or aircraft (with or without a crew) or the supply of transport and not to chartering of a ship or aircraft. Secondly, there is a complex interaction between the rules on both place of supply and liability, of charter, hire, passenger transport and freight transport services. Firstly, within the shipping and aircraft industries the term вЂњcharterвЂќ is used loosely to describe several different types of supply including freight or passenger transport, and is also used in slightly different ways in respect of ships and aircraft. The term вЂњcharterвЂќ has caused difficulties in determination of the correct VAT treatment of supplies of ships and aircraft for several reasons.