Tax reform

May 17, 2011 - 1:50am

Imports of business aircraft into the UK have ground to a halt since tax authorities there scrapped its zero-VAT rating in January, according to Gama Aviation CEO Marwan Khalek. The change was forced on the UK by the European Commission with the intent of harmonizing VAT rules for aircraft sales, but the outcome has been a confusing muddle in which no one seems sure how VAT should now be applied.

February 24, 2011 - 6:10am

The recent removal of the loophole that allowed aircraft owners to import aircraft into the European Union (EU) via the UK at a zero rate of value-added tax has prospective buyers scrambling for fiscally friendly alternatives. One option is for private operators to find a way to get registered for tax purposes under a commercial aircraft operatorπs certificate, but this could subject the operator to unfavorable scrutiny by the authorities.

December 5, 2010 - 11:00pm

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.

April 28, 2010 - 7:20am

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.

April 7, 2010 - 10:20am

Although some operators expressed concern because Bombardier has begun charging sales tax for parts covered under its Smart Parts program, this is a fairly normal requirement, according to tax expert Nel Stubbs, vice president of Conklin & de Decker. “If an aircraft is based in a state that has a sales/use tax,” she explained, “and the part is brought into that state and installed on an aircraft, that state’s tax rules apply.

July 28, 2009 - 11:42am

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.

July 7, 2009 - 12:05pm

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 kg (17,636 pounds). On June 25 the EC “formally requested” through a so-called “reasoned opinion” that Britain bring its VAT rules into line with those of the 27-state European Union.

June 2, 2008 - 7:08am

Value Added Tax (VAT) and import duties for aircraft currently stand at zero percent in Denmark. This allows international operators to avoid tax by basing their aircraft in Denmark. However, zero-rated VAT is in contradiction with European law and pressure is mounting on Danish legislators to adjust their taxes upward.

May 20, 2008 - 12:51am

Value Added Tax (VAT) and import duties for aircraft currently stand at zero percent in Denmark. This allows international operators to escape tax by basing their aircraft in Denmark. However, zero-rated VAT is in contradiction with European law and pressure is mounting on Danish legislators to adjust their taxes upward.

May 15, 2008 - 7:04am

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.

 
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