The short answer
It depends on the flight. A crewed private charter is zero-rated for UK VAT (0%) if it flies between the UK and another country with a planned landing there, or if the aircraft has 10 or more seats counting the crew. Otherwise 20% VAT is added, which applies to many domestic flights in smaller jets. Every Charter-A quote shows the VAT line. This is not tax advice.
Key facts
- Zero-rated (0% VAT) is not the same as exempt: it is a taxable supply charged at 0%.
- A flight from the UK to a place abroad, with a planned landing there, is zero-rated.
- An aircraft with 10 or more seats, counting crew seats, qualifies even on a UK domestic flight.
- A UK flight in a smaller aircraft, or a sightseeing flight, carries VAT at 20%.
- Each journey is judged on its own facts, even when legs share one invoice.
- Check your own position with your accountant: this article is general information.
Is a private jet charter VAT free?
Not as a blanket rule. A crewed private charter is treated as passenger transport for UK VAT, and the VAT on it depends on the facts of the flight. Some flights carry no VAT because they are zero-rated, and some carry VAT at 20 per cent. Which applies to yours depends on where the flight goes and on the aircraft. That is why the line in a Charter-A quote is stated for the flight in question and is not assumed.
The sections below set out the tests in plain English. They are general information, not tax advice, and your own position may differ. For anything that is not clear-cut, ask your accountant or ask us, and we will tell you how the flight in your quote has been treated.
What does zero-rated mean, and how is it different from exempt?
Zero-rated means VAT applies to the supply at a rate of 0 per cent. The sale is still a taxable one, charged at nothing. Exempt is a separate legal category, where the supply is outside the VAT system altogether. The two are often used as if they meant the same thing, and they do not. When a Charter-A quote says "zero-rated (0% VAT)", that is the precise statement: no VAT is added to the price of that flight, and the flight remains a taxable supply.
When is a private charter zero-rated?
A crewed passenger charter is zero-rated if any one of these is true. If none is true, VAT at 20 per cent is added.
- It is an international flight. The journey is from a place in the UK to a place outside the UK, or the reverse, and the flight is scheduled to land in the other country. The zero rate applies to the UK part of the flight.
- The aircraft has 10 or more seats. HMRC counts the crew seats as passenger seats, so an aircraft with eight passenger seats and two crew seats counts as ten. This is judged on the aircraft actually used, in the layout it is in on the day of the flight.
- It is a scheduled service. That is why airline tickets are zero-rated. It is not relevant to a private charter, but it explains the general pattern.
The source for these tests is HMRC’s guidance on the VAT treatment of passenger transport (VAT Notice 744A), which Charter-A follows.
When is 20 per cent VAT added?
| Trip | VAT |
|---|---|
| UK to or from abroad, with a planned landing abroad, any aircraft | 0% (zero-rated) on the flight |
| UK domestic flight in an aircraft with 10 or more seats, counting crew | 0% (zero-rated) |
| UK domestic flight in a smaller jet or a turboprop with fewer than 10 seats, counting crew | 20% |
| Sightseeing or pleasure flight, whatever the aircraft | 20% |
A summary of the tests above, for crewed passenger charters. General information, not tax advice. Your quote states the VAT line for your flight.
In practice many UK domestic flights in light and midsize jets carry 20 per cent VAT, because those aircraft usually have fewer than ten seats once the crew are counted. The Charter-A fleet guides show up to 4 to 9 passengers across the very light, light, midsize and super-midsize classes, and 11 to 14 in the heavy class. Passenger numbers alone do not settle it, because the seat count that matters is the one in the aircraft used, in its layout on the day. If a different aircraft is substituted, the answer can change.
How do the tests apply to some everyday examples?
These are illustrations of the reasoning, not quotes. In each case the line on your quote is what counts.
- A light jet from London to Nice, scheduled to land in France: an international flight with a planned landing abroad, so the UK part is zero-rated.
- A light jet from one UK airport to another, with no landing abroad: a domestic flight in an aircraft with fewer than ten seats counting crew, so 20 per cent applies.
- A heavy jet from one UK airport to another: the aircraft has far more than ten seats, so the flight is zero-rated even though it is domestic.
- A flight to the Channel Islands or the Isle of Man: ask us before you assume. Which VAT rules apply depends on the destination and the facts of the flight, and we state the position on your quote.
How does the seat count work for smaller aircraft?
This is the test that surprises people. HMRC counts the crew as passengers when it counts seats, so an aircraft with eight passenger seats and two crew seats has ten. It is judged on the aircraft actually used, in the layout it is in on the day of the flight. A substitute aircraft with fewer seats, or seats removed from the cabin, changes the answer.
Aircraft with flexible seating qualify only if the flight manual shows 10 or more seats, the seat tracks for ten are permanently fitted and the seats and safety equipment for ten are kept in place at all times. Where there is doubt, the safe approach is to treat the aircraft as under ten seats. The passenger numbers in the fleet guides are the highest seen for each type, so they are a guide to the class and not a statement of the VAT position of a particular aircraft.
Why do the "8,000 kg" and "airline" tests not apply?
You may have read that an aircraft over a certain weight, or one used mainly by airlines on international routes, is zero-rated. Those tests belong to a different rule: the zero rating for supplying, hiring or repairing an aircraft itself, for example hiring a bare aircraft to an airline. They are not tests for a crewed passenger flight, and they do not zero-rate one. If a quote or a website relies on one of them for a passenger charter, ask what it is based on.
Does VAT change how the price is shown?
It changes how it should be shown, not what the flight costs the operator. With a zero-rated flight, the price you see is the price you pay. With a 20 per cent flight, the aircraft price and the VAT appear on separate lines, so that the two are not mixed together. When you compare quotes from different companies, compare the price with VAT included on a domestic flight, and check which tests each company has applied.
What counts as an international flight for this purpose?
The test is a planned landing in the other country, not just crossing foreign airspace. A flight from one UK airport to another that happens to pass over foreign airspace, with no planned landing abroad, is a domestic flight and carries 20 per cent unless the aircraft has ten or more seats. A flight from the UK to a destination abroad, scheduled to land there, qualifies.
Flights to the Channel Islands and the Isle of Man are worth a question before you book, because the VAT position depends on the destination and the facts of the flight. The practical point is to ask, not to assume, when a trip touches either: the VAT position for your flight is stated on your quote.
What if a trip has several legs on one invoice?
Each journey is tested on its own facts. A series of flights on one invoice is not automatically zero-rated because one leg is international: a separate UK domestic journey on the same invoice is still judged as domestic. That is why a Charter-A quote itemises the legs and states the VAT on each, so that the figures are clear before you approve them.
Are there flights that are always charged at 20 per cent?
Yes: pleasure flights. A flight flown for the experience of flying, such as a sightseeing trip or a flight that returns to where it started with no purpose beyond the flight, is standard-rated whatever the aircraft. The zero rate is for transport, which is travel from one place to another.
What about flights that start or end in another country?
The UK rules cover the UK part of the flight. Other countries have their own VAT, sales taxes or aviation taxes, and the position depends on the country and on the flight. Local taxes may apply, so ask before you rely on any assumption. We do not state a foreign tax position, and an accountant who knows your circumstances is the right person to confirm it.
How does Charter-A show VAT on a quote?
Every proposal states the VAT position as a separate line: either "0% VAT (zero-rated)" or "plus VAT at 20%". On a UK domestic flight the 20 per cent is shown as its own line, so you can see the aircraft price and the VAT apart. Evidence of a planned landing abroad, such as the itinerary, is kept with the flight records. For the other elements of the price, see what is included in a private jet charter price.
Is this tax advice?
No. This article explains how the rules work in general, for a crewed passenger charter, and it is not tax advice. How waiting time, handling, landing fees, positioning legs and ground transport are treated can differ from the flight itself, and your own VAT position, particularly if you are VAT-registered, depends on your circumstances. Check it with your accountant, and if a quote is unclear, ask us to explain how the flight has been treated.
What can change between the quote and the flight?
The aircraft, mainly. The VAT position is judged on the aircraft actually used, in the layout it has on the day, so a substitute with a different number of seats can change the VAT line on a domestic flight. A change to the route can do the same: moving a flight from one with a planned landing abroad to one without changes it from international to domestic. If either happens, the quote is reissued, and you see the new VAT line before you approve it.
Evidence matters on the zero-rated side. HMRC expects proof of the planned landing abroad, such as the itinerary or the flight plan, and that evidence is kept with the records of the flight. That is one reason a quote names each leg and its destination.
Are cars, handling and waiting time treated the same way?
Not necessarily. The tests in this article are for the passenger flight itself. How empty positioning legs, waiting time, handling, landing fees and ground transport are treated for VAT is a separate question, and the answer can differ from the flight. It is not covered here, so check the VAT line against each item on your quote, and ask us or your accountant where it is not clear.
More questions
Is there VAT on private jet charter in the UK?
Sometimes. A crewed charter is zero-rated (0% VAT) on an international flight with a planned landing abroad, or in an aircraft with 10 or more seats counting crew. Otherwise 20% VAT is added, as on many UK domestic flights in smaller jets.
Is zero-rated the same as VAT exempt?
No. Zero-rated means the supply is taxable at 0%. Exempt is a different legal category. A Charter-A quote says "zero-rated (0% VAT)" for that reason: no VAT is added to the price, but the supply remains taxable.
Do I pay VAT on a flight from London to Paris?
A flight from the UK to France, scheduled to land there, is international and zero-rated on the UK part of the flight, whatever the aircraft. The quote states the VAT line, and local taxes may apply in other countries.
Why is VAT charged on a domestic flight in a small jet?
Because a UK to UK flight is domestic unless the aircraft has 10 or more seats counting crew, and a light or midsize jet usually has fewer. In that case 20% VAT applies and is shown as a separate line on the quote.
Does a sightseeing flight carry VAT?
Yes. A pleasure flight, flown for the experience of flying, is charged at 20% whatever the aircraft. The zero rate applies to passenger transport from one place to another.
Can my business reclaim the VAT?
That depends on your own VAT position and what the trip is for, so it is a question for your accountant. We show the VAT as a separate line on every UK domestic quote so that you have the figure you need.
Related articles
How much does it cost to charter a private jet?
Chartering a private jet typically costs from around £2,000 to £3,000 per flying hour for a small jet, rising to £6,000 to £8,000 per hour and more for a large or long-range jet.
What is included in the price of a private jet charter?
A Charter-A private jet quote is one inclusive figure.
How much does a private jet cost per hour in the UK?
As a guide, a light jet costs about £2,000 to £3,600 per flying hour and a midsize jet about £2,800 to £5,600, rising to £6,000 to £8,000 and more for large and long-range jets.
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The VAT tests and the quote wording follow Charter-A’s VAT rules sheet, which is based on HMRC VAT Notice 744A on the VAT treatment of passenger transport; seat numbers are from the Charter-A fleet guides. General information, not tax advice. Charter-A Ltd acts as agent for the passenger; details are confirmed for each flight at booking.