Aircraft VAT / import VAT / getting busted upon landing in the EU (merged thread)

Yep but I assume he is EU-domiciled no?

We have heard stories of other EU customs agencies impounding non-EU registered aircraft until the VAT status can be determined or paid. We also understand that HMRC no longer issue Certificates of Free Circulation to prove the VAT status of a foreign registered aeroplane to these agencies.

Since the aeroplane was originally imported into the EU in 1980, the original sales documentation stating VAT paid no longer exists. As such I was wondering whether we could receive some documentation from HMRC stating that the VAT liability on the aeroplane is zero or that the aeroplane is considered to be in Free Circulation by HMRC in case we are ever ramp checked by a foreign Customs agency?

Can you confirm that there was a ruling made that any aircraft that was registered pre 1985 and was in continuous EU ownership up to 1/1/1993 would be considered as VAT paid and if so could you point me to this ruling please.

In my experience the French only look for evidence of VAT payment on import. In your case the aircraft has been in continual EU ownership for a long period, and as you say qualifies as having VAT paid status by virtue of the E.E.C. Council Directive 92/111, part of the Sixth Directive, Article 28N- Transitional measures, which you have correctly stated the conditions that apply.

Ours was G reg, in the EU and then we transferred to the N reg. Due to the above Council Directive it is considered VAT paid even though we don’t have any proof.

Hi Folks I am new to this forum, and I have been solicited to bring my personal experience with this issue, so here it goes. I have been in France and Italy with N and Russian RA registered aircrafts.

Trust me be careful, very careful when travelling to these countries if you cannot produce EU custom forms testifying VAT paid. This applies mostly to N registered aircrafts. Regardless of whether you are a foreign, Swiss, Norwegian schengen national or EU resident or national. If you are an extra EU resident you may be allowed to carry on if you prove that you are in transit, or that plane has temporarily entered EU for a period of less than 6 months.

The likelihood that you will be called to produce evidence is higher if you stop at major airfields which have a custom office.

In France in addition to the Douane (Customs and Excise) the "Police de l’Air et des Frontières " Travels around in Socata Trinidads singles stopping here and there to check and possibly nail foreigners.

Whether customs or Police de l’Air when they check you look for primarily VAT payment proof and you will be grounded if you cannot prove compliance. There are other issues that will bring trouble like:

Entering Schengen airspace from a non Schengen European state or from abroad without passing through an approved airport with custom facilities.
Beware Swiss and Norwegian, These countries are Schengen for people and not for goods, so you must respect this procedure. 99,999% of times nobody will check you, Likewise 99,999% if you get caught entering from extra Schengen states at non custom airfields, fines are in the thousand euros.

French officials have another nasty way of nailing you, they will check if you have entered the just completed flight in your logbook ! failure to do so: Fines$$$$$$$$$
You are exempted to log your flight if you are in transit at the given airport, better know this and keep it in mind, if you don’t they won’t tell you !!

Now my experience in Italy

Luxury tax: Time ago italian government came up with a Luxury Tax on boats and airplanes. It applies to ALL aircraft, national, EU, N registered; except experimentals, more than 25 years old, those used for training and under maintenance in approved facility. Typical fee for a light single around 1’500 euros.
At the outset the tax was due after 48 hours of entering italian territory, then they extended the waiver to six months.

VAT: This year at Roma Urbe airport (To name one) where I am free lance at a school, I witnessed the " Guardia di Finanza" impounding of ALL “N” and “T7” (San Marino Republic) aircraft. ALL of them, first they impound them and then they ask for proof of VAT or proof that plane is registered under a non EU resident and in transit for less than 6 months. Local Diamond School had its N Diamond and Cirrus impounded, ALL private owners N and T7 likewise plus the owner of a swiss registered PA28. What is even more shocking is that companies and private owners were tax raided after that. companies had also a hard time, for they, unlike private owners can waive VAT in their books until they transfer or sell to a private.

I warn all of you to be very careful, local officials are adamant and there is no way to escape, make sure you have the necessary custom forms at hand; If you imported any vehicle or airplane or boat as part of personal belongings as you moved back to EU as a resident, you must produce a document stamped by excise and customs, freight forwarders or third parties documents will not be accepted…

Good luck, fly safe

Thanks markkal. Godness and I thought I was scaring Shorrick with just my own paranoia.

France has really become a very problematic place to fly to. What a pity, I used to enjoy it. Italy, no surprise there really, seeing as they even violate the law and prosecute their citizens on Swiss soil without even informing or getting permission by our authorities.

Travels around in Socata Trinidads singles

Yeah, beware of such people…

I wonder how I should do the paper trail for my D-reg to N-reg migration. Airplane has been D-reg since it was first shipped but I better make sure there is sufficient evidence to convince the dumbest local authority.

French officials have another nasty way of nailing you, they will check if you have entered the just completed flight in your logbook ! failure to do so: Fines$$$$$$$$$

This is new to me, Is the entry your pilots log book or the tech log?

Technically it should be an entry into the aircraft journey log.

Why do people give up flying?
Fed up with (almost always) being treated like a criminal perhaps?

This is all very interesting and concerning but is there any Euroga reader who has actually had any of this happen?
I have made probably a hundred flights to France (and a few to Spain (G reg) never been ramp checked, my flying buddies tell the same story except for one ramp check in Biarritz on an N reg but no problem encountered and certainly neither the log book for the plane or pilot required.

These reports always seem to be anecdotal, anybody have any personal experiences with ramp check problems.?