only a small % of GA planes was made in the EU
I distrust the smiley that went behind – but if this remark is to be taken seriously, it depends (again!) on definitions. If 3-axis microlights are considered G/A, you are wrong: they make up a good part of the European G/A-fleet, and some 90% must be of European origin. The Rans S6 the most notable exception, I should think.
Yes, sorry, my smiley could be taken both ways…
In the UK and Germany and probably much of Europe, most planes parked at GA airfields are US made. In France, most planes parked anywhere are French made. I am sure the strip community has different demographics again but they probably aren’t a target for unpaid VAT because they are not too obvious.
Also I would think US made planes would be the #1 target anyway because – obviously – they have been imported. I can’t see even a French customs officer hitting a Robin, especially since its owner speaks French so won’t be so much over a barrel.
Assuming I am not importing the aircraft myself… as a consumer, how is it my responsibility to ensure that the seller remitted the VAT to the relevant authority? Again, as a consumer, the price I pay includes any VAT element. AFAIK, the seller is not even obligated to provide a VAT receipt unless I am also VAT registered. I can’t imagine the tax authorities coming after me for another helping of VAT if the seller failed to make a required VAT return.
Surely this must come up all the time when firms go out of business, but I don’t hear about the VAT Man knocking on peoples door.
Dear x
With reference to our meeting dated xxxxx, I can confirm that the “Agreement for the Sale and purchase of a second hand yacht” and the “Bill of Sale” are satisfactory evidence to meet the conditions as set out in notice 8 para 6.3 “Sailing your pleasure craft to and from the United Kingdom”, which states that "if you are unable to provide any of the documentation mentioned in the Notice, whilst cruising within the EU, you should carry a Bill of Sale (between two provate individuals in the UK). Whilst this is not conclusive proof that VAT has been paid, it does indicate that tax status is the responsibility of UK customs.
The second page of the agreement, paragraph 1, Purchase Price, states that "the vendor is not a registered person for the purpose of the regulations relating to Value Added Tax and Value Added Tax is therefore not payable on the purchase price and the Bill of Sale also demonstrates that the sale is between two private individuals.
In a different world, but no difference in principle, and notwithstanding that part of the Notice has been replaced, you will still get something similiar from HMRC.
However you would ask for a copy of the original purchase invoice (and unless the chain is very long) you would expect the vendor to have the invoice. I would have thought you would think twice about a substantial purchase without the original document if only because whatever the position here, elsewhere in Europe are you so certain the same view would be taken?
VAT in EU
Hello,
I’ve got one question regarding business jets and VAT in EU.
It’s connected to parking on apron and in hangar – should it be VAT taxable as connected to real estate, or an exemption connected to aircraft needs?
Maybe you can at least share an experience how it’s invoiced around EU?
Hope someone could help us out as no concrete answer can be found for a long time!
Thanks!
In Germany and UK there is VAT on hangarage and I guess other countries are the same.
But it is no problem if it is a business jet as all VAT registered businesses get their VAT back.
I am still trying to get the reference for that often-mentioned VAT treaty… haven’t forgotten.
Very interesting reading. Two questions:
1. Im N reg have owned the plane for 30+ years and have never been required to have an aircraft journey log. Just a maintenance log. Secondly none of the logs are required to be carried on board. I guess the FAA is smarter than the EASA counterpart figuring it would be difficult to blame whomever if the records were unreadable and charred. Im sure none of the N reg airlines carries a journey log.
So what to do? Most of my trips are on my G496 handheld I wonder if that will do?
2. I moved to Europe and got an satisfaction of VAT compliance from the Customs people here in Hungary. I carry that document which was offically translated to English by the Govt Translation office and sealed stating all VAT was satisfied. I was told that in order for the VAT satisfaction to remain valid I had to wait 1 year before I could sell the plane. It seems to me that the meaning behind that is, that if I do sell the document is transferable to the new owner. Am I right?
As was stated earlier by another poster. Is it any wonder that GA is dying in Europe. With all the cost and ALL the BS regulations who would embark on such a foolish venture but a starry eyed 20yr old who has no concept of reality.
That Denmark loop hole which infuriated the tax people throughout Europe and the courts eventual ruling, is about as dumb as what we in have with US the Supreme Court.
Here is the analogue for the Brain trusts and tax people. Say your coming up to a highway with tollgates in the distance that you can see. But not to far ahead a road bears right. A sign marks the road to the right as being toll a free by pass while to the left it shows a toll required. Both are govt roads. The toll free road just by passes the toll booths before it merges onto the toll road.
Is it any wonder then that people use the by pass since it is a legitimate road to get around the toll? If you give people a legitimate road to get around your toll system then dont declare these people exercising freedom of choice as criminals because they dont pay the stupid toll.
Go after FIFA will ya! Or if you really want to make money the criminals running the Banks.
Is it any wonder that GA is dying in Europe.
I would bet that the pilot population in the US declines by a larger number of persons per year in the US than in Europe…
BTW, in the US you pay taxes on owning and even on the private sale of aircraft, at least in many states. That is very rare in Europe. In Germany you pay nothing for a private aircraft.
