Mineral Oil Tax on heavy oil (diesel) used for private pleasure navigation

Hired craft

(A) General

Any operator who hires out craft for private pleasure use and does not avail of the procedure set out in paragraph (B) below, is required to make a single return for all the craft concerned. Where marked gas oil is purchased by the person who has hired the craft, that person should retain the receipts for such purchases and give them to the owner when the craft is returned. In any case where the receipt is not available the purchaser should complete a statement consisting of

  • the cost of the purchase
  • the quantity of marked gas oil purchased
  • the date of the purchase
  • the retail outlet where it was purchased.

The declaration form PPN 2 is to be used. The craft owner may, for the purposes of the return, estimate the quantity of fuel purchased by reference to the purchaser’s statement. The owner should include these details in the return and account for the additional duty.

(B) Craft-Hire Operators on Inland Waterways

As an alternative to the procedure set out at paragraph (A) above, craft-hire operators with refuelling facilities may enter into a mutual arrangement whereby each participating operator makes returns in respect of all the marked gas oil they supply for private pleasure use, both for their own craft and those of the other participating operators.

Under this arrangement, the requirement under paragraph (A) above, for the person who has hired the craft to provide receipts or to otherwise account for fuel purchases does not apply.

Revenue will require each participating hire operator to authorise the other participating operators to make returns and payments on their behalf. They will also be required to undertake to reciprocate for supplies made to the craft of those operators. The template document Combined Authorisation/Undertaking by the Hire Craft Operator can be used.

At the end of the accounting period, each participating operator will make a return in respect of all marked gas oil supplied to craft on hire from their own business using PPN 1 form. A separate return PPN 3 form in respect of all supplies relating to hire craft of the other participants will also be required. Payment must be made at the same time in accordance with both returns.

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