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.
Italy’s parliament passed proposed changes to the aircraft luxury tax today, according to NBAA.
Flexjet is offering new and existing customers free fuel when they purchase fractional shares from now until April 30. Customers purchasing a one-sixteenth share in a Learjet will receive a credit of 12 hours of free fuel; a similar share in a Challenger earns a 25-hour fuel credit. According to Flexjet, the credit, which includes fuel component adjustments and federal excise taxes, is based on published rates on the day of contract closing and will be applied to the fuel surcharges per hour flown.
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.
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.
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.
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.
Under a provision of President Bush’s economic stimulus package, purchasers of new aircraft can take a first-year depreciation deduction of 30 percent for the taxable year in which it is placed in service. H.R.3090, “The Job Creation and Worker Assistance Bill of 2002,” included a 30-percent bonus depreciation provision on the value of certain capital assets for 36 months.