Who mentioned a Cirrus? Is this forum too much SR20/22 focussed, or too much P-focussed?
That’s just an example. Feel free to replace Cirrus with Piper, Cessna, Diamond…
Well, when I bought a used PA46 that was purchased new in Europe and was on the N-register, I got a C88.
yes, for an N-reg that might be necessary
If you buy a computer from your local retailer, and pay them the VAT, but the next day the retailer goes bankrupt and never pays the tax over to the tax man, then the VAT was never paid on your computer. But the tax man doesn’t come after you for it. And it’s not just due to value. It could be a warehouse full of computers, and he still won’t come after you for it. You’ve done your bit. Otherwise every purchaser would require an indemnity that they would only release on proof that the VAT has been remitted to the tax man. Clearly business would grind to a sudden halt under such a system.
I agree, although that example has another problem which is that retail prices are normally deemed to include VAT so if the company didn’t charge vat they lost the money anyway.
yes, for an N-reg that might be necessary
No! You can easily import a plane from the US, or from Jupiter, put it on G reg, and not pay the import vat.
Happened a lot. The sheer size of the problem led to the 1980s amnesty. Details were posted here a long time ago, IIRC.
Or you could buy a G reg which lived on the Channel Islands which are outside the VAT Purse. I know a UK guy who got caught for that and had to pay the VAT… about 10k.
The reason this is an issue is because
Where is your example of a EU reg plane ever beeing checked for VAT? I have never heard about such a case.
Above
That’s too obscure, sorry. I’ve worked as an aviation journalist from 1994-2012, and i have never heard of one case where the VAT status of a German registered plane was checked anywhere in the EU.
It was always N-regs.
One more thing: If the airplane was first registered in the EU you have to keep the original invoice (which is the proof for paid VAT according to the central customs office in Munich) ten years max. Tax evasion cannot be enforced after ten years, in Germany.
Tax evasion cannot be enforced after ten years, in Germany
That is very handy, and very unusual.
That’s too obscure, sorry.
It’s the best you will ever get, for the usual reasons people don’t readily discuss successful tax investigations.
Fight back !
I know of a multi-million € plane (N reg’d) that was seized by the French tax authority recently.
The owner of the plane hired a lawyer and is fighting back since the acft is in transit and was declared as such on arrival.
The interesting part is that if/when the lawyer has the lien removed, the tax authority will be obliged to pay back 1% of the value of the aircraft for each month it was immobilized.
In this case were talking 30K€ a month … If not, the owner will have to pony-up 20% plus penalties …
