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.
Value added tax
April 12, 2011 - 8:22am
Britain’s coalition government–composed of an exotic combination of Conservatives and Liberal Democrats–is at war with itself in more ways than one. But its recent proposals for a new tax on private aviation are a prime example of this conflict.
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.
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.
May 3, 2010 - 5:56am
Operators of Bombardier jets are dismayed because they now have to pay state sales taxes on parts purchased through Bombardier’s Smart Parts program. Several operators who spoke to AIN on condition of anonymity said one of the primary reasons they participate in Smart Parts is to control and budget annual operating costs. “This adds a new dimension to overhead we didn’t budget for 2010,” one said.
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.
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.
September 9, 2008 - 11:25am
Several U.S. operators of business aircraft report that they have received invoices this week from NavCanada for a retroactive 5-percent goods and services tax (GST) on air navigation service charges. The Canadian Revenue Authority (CRA) has assessed the tax to NavCanada, which is attempting to recover payments from aircraft operators who have flown in its airspace in the last five years, the length of the statute of limitations.
August 29, 2008 - 10:45am
In some respects Russia’s development has followed a pattern familiar to Westerners, but that is not true for its business aviation industry. While Russian billionaires show off their huge yachts in the most expensive and trendy places in the world, buy A380s for personal use, haunt French ski resorts and buy islands off Dubai, some of the nation’s laws prevent wealthy individuals from reaping the benefits of business aircraft.
