Value Added Tax Consolidation Act 2010 Schedule 3 paragraph 19

Hiring for short periods

Schedule 3 paragraph 19 applies the reduced rate of VAT to the short-term hiring of certain vehicles, vessels and mobile accommodation.

• The reduced rate applies to hiring a road passenger vehicle, a passenger vessel of up to 15 gross tonnes, a sports or pleasure boat, or a caravan, mobile home, tent or trailer tent.
• The hiring must be under an ordinary hire agreement, not a hire purchase or similar agreement that transfers ownership.
• The total hire period, including any previous hirings of the same or similar goods to the same person in the preceding 12 months, must not exceed five weeks.
• If the cumulative hiring period exceeds five weeks, the reduced rate no longer applies and the standard rate is charged instead.