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

2.-(1) In subsection (1) of section 47A of the Value Added Tax Act 1983-

(a)after the word "means", in the third place where it occurs, there shall be inserted "subject to subsection (1A) below"; and

(b)in paragraph (c)(i), after the word "a" there shall be inserted "displacement or".

(2) After subsection (1) of that section there shall be inserted-

"(1A) A ship, aircraft or motorized land vehicle does not fall within subsection (1) above unless it is intended for the transport of persons or goods.".

Explanatory Note

(This note is not part of the Order)

This Order implements Article 1.22 of Council Directive 91/680/EEC (OJ No. L 376, 31.12.91, p.1) supplementing the common system of value added tax and amending the Sixth Council Directive 77/388/EEC (OJ No. L 145, 13.6.77, p.1) so as to insert Article 28a 2(a).

The Order is made under section 47A(3) of the Value Added Tax Act 1983 and amends the definition of a "means of transport" in section 47A(1) so as to include motorized land vehicles having a displacement capacity exceeding 48 cubic centimetres. The Order also excludes from the definition any ship, aircraft or motorized land vehicle which is not intended for the transport of persons or goods.