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

Trusting a seller that says: “I imported the airplane and paid a 5 digit amount in taxes but I lost the receipt – but you can trust me that it is paid because it is registered” is like believing him “The plane has an ARC but I lost it – but you can trust me because I flew the plane here which I would not do if it’s not airworthy”.

Yet, probably 95%+ of buyers do exactly that.

I would not buy a “Denmark-0-VAT-plane”. But this is my personal choice.

AFAIK that one has never been won in any court in Europe, for the tax collector. As I posted that 8 year old link, Germany tried it. I know the UK looked at it too but decided they would lose, because the Danish CofFC was valid at the time. Sounds like Italy had a go at the same thing, and also lost.

This thread is now the same as this one

Administrator
Shoreham EGKA, United Kingdom

Customs authorities (and, to a lesser extent, tax authorities) have in many instances draconian powers

And some outrageous examples around here as well. All paid for by our taxes, therefore our employees…
Good thing that in return international flying is sooo easy within the EU 😤🤬

Last Edited by Dan at 27 May 15:25
ain't the Destination, but the Journey
LSZF, Switzerland

I wonder – and it may have been covered before – why the buyer of a non-VAT-paid aircraft who is NOT the importer is liable for the tax, if he can demonstrate that the aircraft was indeed imported earlier, and by whom.

Biggin Hill

Cobalt wrote:

I wonder – and it may have been covered before – why the buyer of a non-VAT-paid aircraft who is NOT the importer is liable for the tax, if he can demonstrate that the aircraft was indeed imported earlier, and by whom.

I think you may demand your money back from the seller if tax authorities start proceedings (as you’ve bought it in good faith), but if the aircraft has not completed customs procedures, then it needs to be. As you’ve bought a plane with a liability, it is your problem now. :)
If you’ve bought some stolen goods unknowingly, you will not be put in prison, but the goods will be confiscated.

EGTR

From here – a plane in Norway

Is a plane like this „EU VAT paid“?

Mainz (EDFZ) & Egelsbach (EDFE), Germany

Good Q. Any particular reason why not? Norway has its own VAT scheme, and a VAT treaty with the EU. At work, pre-brexit, we would sell to Norway like any othr EU country. In Europe, my biggest customers are in Norway and Switzerland.

I have uploaded a local copy of the ad, otherwise the thread very quickly becomes useless. Could people please do this when posting planecheck ads?

Administrator
Shoreham EGKA, United Kingdom

I’d guess it’s not EU VAT paid.

always learning
LO__, Austria

Cobalt wrote:

I wonder – and it may have been covered before – why the buyer of a non-VAT-paid aircraft who is NOT the importer is liable for the tax, if he can demonstrate that the aircraft was indeed imported earlier, and by whom.

Simple answer: Because that case does not exist!

If the original owner did not pay the VAT he did not import the plane. So the buyer actually buys a plane that might be physically in the EU territory, but has not been legally imported. Therefore the buyer needs to import the airplane legally (and hence pay VAT).

For that reason I btw. do not share the opinion that was posted earlier that the buyer would beyond VAT also owe interests on the VAT amount for the preceding x years of the seller using this airplane w/o paying VAT. That is the sellers problem. The buyer is only responsible for the VAT from the day he buys the plane and hence imports it into the EU.

Germany

Cobalt wrote:

why the buyer of a non-VAT-paid aircraft who is NOT the importer is liable for the tax

Because of temporary admission, the importer is only liable to VAT if he can’t sell it locally

Last Edited by Ibra at 28 May 11:18
Paris/Essex, France/UK, United Kingdom

AfricanEagle wrote:

In all previous cases the tax authorities lost their case in front of the court.

Just an enormous waste of owners time and public money.

I remember when the Swiss caught some of them red-handed on Swiss territory spying on their fellow citizens. Caused a major diplomatic hickup, as they are not allowed to operate outside their own country without permission, which is as good as never granted.

I think that was during the time when they tried to fleece people with their luxory goods tax and depopulated some upper class resorts and caused a frantic departure of quite a few airplanes and boats from Italian harbours and airfields for a good while.

And even if they loose after a couple of years, the confiscated airplane will by that time be worthless and getting them to pay compensation for abuse of power? Did that ever happen?

LSZH(work) LSZF (GA base), Switzerland
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