With aircraft owners facing continuing headaches over importing aircraft into the European Union, offshore registrations are increasingly being considered as a more flexible option. At the same time, lawyers have been scrambling to develop elegant solutions to avoid at least immediate liability for punitive rates of value added tax through deferral schemes.
Ad valorem tax
After four highly successful years Brian Johnson, the man behind the Isle of Man Aircraft Registry and the island’s first Director of Civil Aviation, leaves on August 26 to pursue a new challenge (the Swaziland registry, according to some reports).
Universal Weather & Aviation (Stand C235) has doubled the number of countries covered by its UVAir service to provide fuel invoicing that is compliant with requirements for value added tax (VAT) due on aircraft fuel in Europe.
Universal Weather & Aviation (Booth No. 7030) is launching a new service to guarantee that fuel purchases in Europe are made at the correct rate of value added tax (VAT). The complimentary service, which started on May 1, should overcome the headaches commonly associated with calculating which VAT rate should apply based on an aircraft operator’s status.
The UK government is considering a demand from the European Commission (EC) that it change its tax legislation to remove an exemption from value-added tax (VAT) for privately operated aircraft weighing more than 8,000 kilograms (17,636 pounds). On June 25, the EC “formally re-quested” through a so-called “reasoned opinion” that Britain bring its VAT rules in line with those of the 27-state European Union.
Valued-added taxes (VAT) may now amount to 25 percent of a jet fuel purchase in some parts of Europe. But that’s the bad news. The good news is that in most cases this tax may be refunded, as may VAT levied on many other business-
related goods and service expenses incurred by company employees traveling abroad.