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

I don‘t see how registry has anything to do with importation per se. Importation is strictly customs resp. VAT/duty/tax relevant and should be clear/documented upon first landing. The actual location of the aircraft is not relevant when changing registration although it might be advantageous from a cost perspective to have it physically present in the new country of registration. Some countries might require that imported aircraft be locally registered within a certain period of time, similar to the common/normal treatment of cars, but that is not a function of the aircraft location…. i.e it can still enter and exit freely.

Peter wrote:

Import for VAT is completely different to import onto an aircraft registry.

Yup, those two get confused all the time and at all levels, even by officials who should know better, so be careful out there: customs and immigration officers have executive powers…better deal through someone who does it routinely.

I have subsequently been advised that if the same person exports to EU from UK and then re-registers (and hence imports) back into the UK (where VAT has previously been paid) your are UK VAT exempt when you re register. Must be the same person doing the exporting and importing though.

https://www.gov.uk/guidance/pay-less-import-duty-and-vat-when-re-importing-goods-to-the-uk-and-eu

AndyGreen wrote:

I was under the impression that once an aircraft leaves the G reg, to bring it back / re register it as G, you effectively start again and pay VAT AGAIN because it’s a new import? Is there an exception to that if it’s the same individual re-importing it?

I’ve always heard, but haven’t seen the actual regulation, that in EU VAT law, indeed reimport within two years is free of duties and VAT. Insofar as UK VAT law hasn’t changed in this point since Brexit, it would be true for UK also.

Hi everyone,

I’m considering purchasing a piper Cherokee aircraft that was registered G when purchased by the current owner back in October ‘21. It was UK VAT paid at that time. The owner then exported it to Netherlands in early ‘23 and paid EU VAT at that time.

See response from UK dealer regarding VAT and re-registering it to G Reg.

“When the owner exported the aircraft he checked with HMRC if he was to bring it back would there be any VAT to pay, and they said he could bring it back as his personal possession, which it is, and there would be no VAT to pay.”

I was under the impression that once an aircraft leaves the G reg, to bring it back / re register it as G, you effectively start again and pay VAT AGAIN because it’s a new import? Is there an exception to that if it’s the same individual re-importing it?

Peter wrote:

@lionel may be able to explain it better.

No expertise in the specifics of the NI part of the EU-UK agreement.

Peter wrote:

Customs on the mainland are already doing all kinds of weird irritating and (for B2B) illegal stuff e.g.

No, that’s not Customs, and (for the Auslagepauschale) regrettably AFAIK not clearly illegal. That’s DHL German Post, the transporter. They do a customs declaration, prepay the import VAT and charge a service fee for that work. They may have done a sloppy work, they may have done it erroneously, that’s another matter, and a long-standing problem with third countries, that is much much older than Brexit. E.g. packages coming from the USA to Luxembourg clearly labelled “baby clothes”, they will make a “non-baby clothes” customs declaration, prepay the wrong rate of VAT and strong-arm you into reimbursing them that wrong amount. Although I admit the Luxembourg post has been getting better at that lately. If the destination looks like a business name, they actually write/email/phone you to ask for your VAT number, and they don’t prepay the VAT, you self-declare it. (I don’t know if Germany allows for this self-declaration or requires prepayment at import + claim back; it varies between EU Member States.)

Peter wrote:

We get this on roughly 10% of airmail packages. (…) It does not happen with courier shipments, presumably because the Customs people know perfectly aware that somebody at (say) DHL will kick up a stink and report them higher up.

I think that’s just because courier shipments are more expensive, they get better customs relations staff at the courier company than postal parcels. Again, this is not Custom’s doing, Customs just applies the customs declaration done by the transporter, and challenge/check it if they suspect fraud or error. That’s it.