Insurance and VAT and insurance premium tax

It is the country in which your aircraft is registered which will determine how much tax is paid on your insurance premium.

In the UK there is no VAT on insurance but there is insurance premium tax (IPT) set at 12%. Thus a GA aircraft on the G register will pay 12%IPT. An N reg aircraft kept in the UK pays no tax in the UK on their premium. A D reg aircraft kept in the UK will pay the prevailing German tax rate on its insurance and so on.

This can cause queries from clients when they change their country of registration and they find they have to pay more for their insurance. There is no higher risk premium, it is simply the result of them having to pay a different rate of tax!

Hope this helps.

Bob

It seems that the issue of the German insurance tax for non D-reg aircraft came up recently, as reported (German language only) here

For EuroGA, what is the substance of that report?

It sounds like it should not be charged on an N reg.

It says that having German insurance tax on a N-reg has been law since 20 years, but nobody was interested or enforced it. Allianz sent a letter with the renewal quote or invoice that explains it in detail with reference to the court cases and all that.

If that is really true, what happens e.g. with an F-reg (or PH-reg) that is based in Germany and owned by a German resident? In my understanding, France (the Netherlands, respectively) considers it is due insurance tax on that, and if Germany does, too, then this will be expensive indeed, as both taxes will apply (!).

C210_Flyer wrote:

I was just looking at the rates. You mean to tell me the French are going to pay 33% for Motor? I assume that includes planes with motors.

No. But the French tax on insurance is particularly complicated.

The rates are in Article 1001 of the tax code.

The 33% rate is for the mandatory insurance of land vehicles with engine; I assume that’s the “third party liability” that is mandatory for vehicles on public roads. And the 33% is “only” for vehicles of less than 3,5  that are not trucks, light trucks or vans used only for “utilitarian use” (I think that means goods, not people) in a farm. Mandatory road insurance of the latter is a rate of 15%.

Non-mandatory land vehicle insurance has a rate of 18%.

Insurance on sport or “pleasure” boats has a rate of 19%.

Insurance on planes has no special rate, and pays the general rate of 9%.

Fire risk insurance has a rate of 30%, unless it is for a farm; then it is 7%.

Juridical insurance (covering your lawyer costs) has a rate of 13,4% (since 1/1/2017; the PDF I linked to is from 2016).

Oh, and that’s only the “regular insurance tax”. Then you have several contributions to the victims fund of this-and-that that add another 2% (mandatory insurance), or a fixed amount per policy, or 5,5% (agricultural insurance), or several of those for certain broad categories (not planes, I think). I told you, it is complicated.