Do you have any details?
Your right
It is indeed new by orginal manufacturer which is ok. As there was also some discussion on second hand parts, yellow tags only, or overhauld or inspected/tested 8130-3 are not always acceptable. Only if it is issued by companies who are also approved by EASA and can give a dual release.
Sometimes EASA also want to see "This part meet the requirements of …….. (EASA country). As not all parts are acceptable under EASA, for example KT-70
Just a thought: does it make any difference if the avionics fit is billed as a repair ?
You can call it what you like. It is either a repair or it isn’t. If it came down to a challenge the tax authorities are not going to accept what the invoice says if in fact you stuck in a 650 instead of a repaired 430.
You can call it what you like. It is either a repair or it isn’t. If it came down to a challenge the tax authorities are not going to accept what the invoice says if in fact you stuck in a 650 instead of a repaired 430.
Correct. I would like to be completely legal to avoid further trouble. Between legal and illegal are just 15% VAT charged in Luxembourg.
I always thought Machiavellianism was a Shakespearian invention!
Sometimes EASA also want to see
But… “EASA” isn’t ever going to see any of this paperwork. Apart from some post-accident or registry-transfer scenario, the only people who are going to see documentation relating to an aircraft are people in the next CAMO. They are the ones you need to keep happy. They are also the ones who have you over a barrel when it comes to reading between the lines of any regs.
Can you find a reference in the Part M regs stating that an 8130-3 is required and it must be a new part and the 8130-3 must be issued by the original manufacturer?
This may also be interesting.
Just a thought: does it make any difference if the avionics fit is billed as a repair ?
VAT is due on the cost of a repair done abroad, too, AFAIK.
However I have never heard of anybody declaring an avionics refit they had done in the USA. And I thought the UK had a bad enough “watch your neighbour” culture already. Here, a lot of people had work done in Guernsey, VAT-free.
Peter,
my try to stay legal with all consequences might sound strange to you. But in Germany we have this trustiness examination every 5 year (from 9/11). They check every register and you have to agree to send the private information about you to the German LBA for inspection. If you had problems with the law within this time – no matter what (!) – you may have to undergo a psychological examination including blood and urine check. Dependent on the law violation you may lose your license immediately until the examination has been performed on you. If the result is negative, you may lose your license for longer or for ever.
I had the luck to undergo such a psychological examination this year at the German Airforce Medical Center in Fürstenfeldbruck because my 5 years were over and I had 13 out of 18 points in the Flensburg driver’s registry due to fast driving. I was allowed to keep my pilot’s license but the examination and the preparation for it was such stress and costs much money I would do that never ever again. I’m now driving like a grandpa. 
During the preparation and afterwards I had contact with several pilots losing their licenses because of tax penalty order, stress with their wife and law suits where they lost etc.
Since I want to fly and losing a license costs much more money than the 15% VAT, my decision is quite clear here. Might be different in UK or other countries but that’s how it is in Germany…
Cheers
Andreas
Good grief!
I’ve never been in trouble with the law apart from the rare speeding ticket. But your story would really put me off living in Germany!
Unfortunately, if you want to be 100% ok with the authorities (and I can see why you would want to), tax on your avionics upgrade is unavoidable. As you spotted, you can benefit from a lower VAT rate by your choice of arrival country in the EU. There are numerous VAT reliefs on imports (such as for exhibitions, charities and scientific research) but none that help an individual already resident in the EU.
However, it’s not just VAT that you need to think about – also any import duty. Like VAT, the rates vary between countries. So minimising the total cost of import requires research into any import duty payable in the EU country of entry. In the UK the duty rate is decided by where your import is located in a commodity classification table. (Lots of scope for argument with the tax authorities, as the table is not totally comprehensive.) Most countries use a similar but not identical system.
AFAIK, import duty (Zoll) on aircraft parts is zero in Germany.
There is an exemption that means that parts for civil aircraft are not subject to import duty. Adding a suitable statement to the airway bill sometimes gets picked up and duty is not imposed. More likely is that one gets an invoice from e.g. FedEx listing duty, and if you send it back pointing out that the parts are for civil aircraft, they will correct the invoice.
Originally, you had to apply for an “end user relief number” to benefit from this exemption, but that is certainly no longer the case in the UK, where since about 2010 there is a simplified procedure that in effect allows for a self declaration. Google “end use relief” if you want to find out more.
I forget the rate of duty applicable, but it is much less than typical VAT rates, and one may of course decide that there are better things to do with one’s time.
