What are the import tax and VAT considerations to be taken into account when dealing with exchanging a motor?,
I have an n reg plane and I am wondering what would the tax considerations be in the following situations
1/ sending the engine to the states for overhaul/repair – I would assume you pay no VAT or import duties when the motor comes back as it was for unit sent for “repair”
2/ Sending the engine and getting a factory remanufactured – (ie different serial no) model back?
3/ exchanging the engine for a different model ?
Are there any/paperwork exercises considering that the plane would be considered AOG – I can imagine there are all sorts of international treaties to deal with aviation and the import and export of parts and repairs.
As I’ve researched and experienced it, aircraft parts are not subject to duty going either way between EU and US. VAT is payable upon import to EU countries, no equivalent sales tax into US. The nuances of avoiding national VAT with importation are certainly complex and as I’ve rarely had need to know, I hope somebody else can provide that information.
(I do know from research and experience that (little known fact) Germany charges ~20% VAT on private aircraft parts being exported, same as those sold for use within the EU)
