Menu Sign In Contact FAQ
Banner
Welcome to our forums

Claiming back VAT paid on fuel outside your own country

Peter wrote:

(including some UK ones) are selling fuel free of VAT when you are flying abroad

You mean Avgas or JetA? Free of Duty or VAT?

Last Edited by Ibra at 04 Feb 15:51
Paris/Essex, France/UK, United Kingdom

Avgas and VAT.

In the UK, the only way I know of to get duty free is to have an AOC and then you claim it back from HMRC via some process. I am sure every country has a similar process. However with an AOC you can get duty free at pumps (outside the UK).

Administrator
Shoreham EGKA, United Kingdom

Peter wrote:

In the UK, the only way I know of to get duty free is to have an AOC and then you claim it back from HMRC via some process.

Errr…. No. Private operators can claim back duty (excise) on Avgas, Mogas, etc that was fuelled in the UK and is in the tanks when starting a flight to leave the UK (even to crown dependencies and such). I expected you knew that. It is called aircraft stores relief

Last Edited by lionel at 04 Feb 16:48
ELLX

Yes of course; I do the fuel duty drawback every 2 years.

I was referring to a general reclaim of duty, on fuel used within the UK, or any other home country as applicable. AOC holders can do that, AIUI.

Administrator
Shoreham EGKA, United Kingdom

Peter wrote:

Then, see if you can explain how some airports (including some UK ones) are selling fuel free of VAT when you are flying abroad

Really, I don’t know.

ELLX

Does any UK airport really still do this? In the past (years ago though) it was reported at Southend, Cambridge and Exeter…

Mainz (EDFZ) & Egelsbach (EDFE), Germany

There was also Lydd but, sure, I can’t find a report younger than about 2-3 years.

The curious thing is that the VAT regs have not changed for at least 10x longer so how did they do it?

If there is not an absolutely rock solid legal basis for not charging VAT, the supplier is likely to get destroyed by HMRC (or whichever country’s VAT collector is applicable) because you are deemed to have deducted the VAT even if you did not charge it, so now you have to hand over the VAT which you, ahem, haven’t got… It is the same legal principle with not deducting income tax, or not deducting enough income tax, on employee wages – HMRC will go after the employer for tax he was supposed to deduct, whether or not he did actually deduct it… with no recourse on the employee who just keeps the extra money. You can see this is an easy route to an instant destruction of your company if the issue was running for some years.

It is the same thing if we sell something to another EU country and (correctly) not charge VAT, because the customer supplied a VAT number, and then the VAT number turns out to be duff. In such a case we lose the money because we have to pay over the VAT we should have charged if the customer was not VAT registered. Thankfully these cases are extremely rare (due to the sort of products we sell) but IIRC in almost every case the customer took advantage of the opportunity to save the (of the order of) £20 and stopped communicating

Administrator
Shoreham EGKA, United Kingdom

Peter wrote:

It is the same thing if we sell something to another EU country and (correctly) not charge VAT, because the customer supplied a VAT number, and then the VAT number turns out to be duff.

If you give both your VAT number and the customer’s purported VAT number in the VIES system and the number validates, it gives you a certificate which I always assumed had some cryptographic proof embedded, and you can use to prove good faith. That you may have to go all the way to court for that is “just” the joys of dealing with states. <bitter> The low-tech (or non-cryptogeek) version is to keep a printout / screenshot / pdf print of the VIES screen (which may actually work better in court, the judge will understand what it is).

Our (homegrown) invoicing system actually refuses to accept a VAT number if it doesn’t VIES-validate, and repeat customer’s VAT numbers are statistically revalidated every XX units of time.

ELLX

Im totally baffled by this VAT thing here in Europe.

So I purchase a product Like a motorcycle helmet here in Germany. I am a US citizen and am leaving to go back to the US some time when my stay requires. I go to the tax office at the airport and reclaim my VAT charges cause I was given a receipt to do just that. So if Im leaving the country with a helmet how is that different than if Im Gassing up to leave the country as a foreign registered aircraft?

KHTO, LHTL

I can get avgas for £1.29 by popping north of the border to EGAB. No VAT or duty is applied.

EIMH, Ireland
Sign in to add your message

Back to Top