Once you have imported into the EU it is in the EU and can move freely therein, it doesn’t matter which country you import into, This opens up the choice to find the lowest VAT rate on import.
Forum,
Any recent experiences on this?
I am looking at importing a Swiss N-reg plane into Belgium.
The VAT that I plan to pay has to be recuperable by my company. Who can advise here?
Just to confirm: no import duties to be paid, right?
Thanks
This thread is worth a read. It appears among the “Threads possibly related to this one” below.
Yes; no import duty (below 8T or so I think).
Reclaiming VAT is a big topic, closely dependent on the specific national tax authority policy. In the UK, they want to see a business plan for the company, and you remain vulnerable for some time afterwards, via things like Benefit in Kind. A search for these terms digs out plenty of discussions.
Niner_Mike wrote:
I am looking at importing a Swiss N-reg plane into Belgium.
The VAT that I plan to pay has to be recuperable by my company.
So you have a company in Belgium that has (or is planning to) bought a plane in Switzerland and then seeks to transfer its asset into Belgium? The tax advisor of this company would be the first one to ask because this is a very specific Belgian tax question.
In Germany it would be quite simple in this case, as any paid Import-VAT can be claimed back with the same process as any other VAT paid by the company… (it just get’s a bit more complex if the “company” has actually no business and therefore the reclaim of VAT is the only VAT related transaction at all).
If the aircraft is registered to a company in Belgium, be prepared to justify each and every flight to the tax inspector. The reason can be visit to client, supplier, trade exhibition, even training is accepted.
We used to write it up in the logbook. The logbook was requested at each annual tax inspection and scrutinized. Be prepared to show invoices to clients or from suppliers.
However, weekendtrips without a good reason can become very expensive. They have their own way of calculating hourly cost.
It is best to agree beforehand and to propose a certain percentage of personal use on which you will be taxed personally.
This is from operating two aircraft on the company books for decades in Belgium.
Thanks.
My Belgian company is a real and small company that has already sizeable aerospace activity and has it written up in its social purpose.
Dirk: I’ll give you a call on the subject.
@Bluebeard @Niner_Mike what was the outcome? It came up here also.
