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The law applying the zero-rate to services of handling ships and aircraft is in the VAT Act 1994, Schedule 8, Group 8, item 6(a) and Notes 5, 6 and 7:

6. Any services provided for -

(a) the handling of ships, aircraft or railway vehicles

(i) in a port, customs and excise airport or international railway area, or

(ii) outside the United Kingdom;

Note:

(5) Item 6 does not include the letting on hire of goods.

(6) (a) “Port� and “temporary storage facility� have the same meanings as in the Management Act.

(6)(b) “international railway area� means�

(i) any place which may be designated as a railway customs area by virtue of section 26(1ZB) of the Management Act, or

(ii) such other place relating to international rail travel as may be specified in a notice published by the Commissioners;

(6)(c) “railway vehicle� has the same meaning as in section 83 of the Railways Act 1993.

Further legal notes also restrict the application to qualifying ships and aircraft in certain circumstances: see VTRANS140200.

References to “international railway area� and “railway vehicle� and therefore the zero rate, only apply from the end of the transition period (31 December 2020).