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Denmark 0% VAT route may be back

Not at all saying, it’s not legal or not legitimate!

Same way, however, it seems to be completely legal (and legitimate) that if a pilot fails to fulfill a reporting duty to tax authorities (as discussed in the other thread), these authorities claim VAT even if the pilot intended to leave the customs area the next day…

Germany

Malibuflyer wrote:

it seems to be completely legal (and legitimate) that if a pilot fails to fulfill a reporting duty to tax authorities (as discussed in the other thread), these authorities claim VAT even if the pilot intended to leave the customs area the next day

Absolutely not. It is completely disproportional that a minor mistake leads to such huge consequences, so it is not legitimate at all. It might not even be legal. As I wrote before, in the UK the customs authorities, who applied similar draconian law to the letter by confiscating cars (wort thousands) where occupants did not declare items to customs (worth a few hundred, and a few tens in avoided duties) because they were “a vehicle used in a customs offense” were eventually stopped by the courts from doing so.

The all-powerful state has constitutional limits to what they can inflict on their citizens.

Biggin Hill

Malibuflyer wrote:

Not at all saying, it’s not legal or not legitimate!

This proves the point if you just pay the VAT because you feel it is appropriate this does not mean at all the state will apply some mercy on their side. You could have payed millions the day before and they will still go after you like crazy for 100 Euro the next day.

Especially regarding VAT the states created a system where probably over 99,9% of aviaiton are exempt which means the second hand market for VAT paid non reclaimable (bigger) planes is nearly non existent. The idea behind VAT for private persons is that it is a consumption tax you pay for the whole lifecycle of a product and not to pay and loose full VAT for 3 years of ownership. So I think it is legitimite for the last few remaining VAT payers to search for solutions.

Some might not see how big this is but just as an example at our airport I am not sure the maintenance company does more money on maintenance or on running small aircraft charter companies with the sole purpose to defer VAT. You even notice people run out of ideas for the names of such companies which get more and more generic over the years.

www.ing-golze.de
EDAZ

Peter wrote:

However, it is 100% legal to organise one’s affairs so as to minimise the amount of tax one pays. It is formally a duty a company has to its shareholders. An individual is required to comply with the tax law, not a penny more.

That was the constant caselaw in the 1970s and beyond. Now there are ever more rules that allow the tax office to disregard such an organisation. It started with “if the sole objective is to minimise the amount of tax”, then “if there is no other substantial objective”, then “if it is the main objective” to “if it is one (of possibly several) main objective”.

Last Edited by lionel at 25 Oct 15:01
ELLX

Peter wrote:

However, it is 100% legal to organise one’s affairs so as to minimise the amount of tax one pays. It is formally a duty a company has to its shareholders. An individual is required to comply with the tax law, not a penny more.

Some countries do have laws that prohibit business transactions made for the sole purpose of evading tax — i.e. transactions completely unrelated to the actual business of the company.

Last Edited by Airborne_Again at 25 Oct 18:04
ESKC (Uppsala/Sundbro), Sweden

Hmm, in Norway all clubs are compensated for VAT. VAT is payed as usual (importing an aircraft for instance, or any other thing for that matter), but the VAT will then be compensated when applying for a special VAT compensation for organisations run by volunteers. It has nothing to do with the usual VAT procedures for businesses, but works largely in the same way for the individual club or organisation.

ENVA ENOP ENMO, Norway

LeSving wrote:

Hmm, in Norway all clubs are compensated for VAT. VAT is payed as usual (importing an aircraft for instance, or any other thing for that matter), but the VAT will then be compensated when applying for a special VAT compensation for organisations run by volunteers. It has nothing to do with the usual VAT procedures for businesses, but works largely in the same way for the individual club or organisation.

Congratulations! In Sweden, clubs have to pay VAT in full.

ESKC (Uppsala/Sundbro), Sweden
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