Due to an apparent contradiction in HMRC guidance on zero rating of supplies to “Qualifying Vessels” we have been advised that we should no longer Zero Rate such supplies.
HMRC document 744c 2011 sets out requirements for qualifying vessels and in section 6.4 it clearly states that repair and maintenance of qualifying vessels is zero rated, provided that conditions specified in 6.4 & 6.5 are met. Paint appears to satisfy these conditions.
However, section 7.5 goes on to specifically exclude the following items: “bulk materials such as: adhesives, chemicals, fabrics, inhibitors, metals, oils, paints, solvents and thinners etc.”
Until such time as we receive clarification, we regret that we are not able to zero rate paint supplies.