TAXFREE.BUSINESS

Full aviation solution

VAT and fuel tax can amount to up to 40% of your total costs as an aviation company. There exists 3 key pillars where aviation companies or aviation linked companies can recover these costs:



1) VAT RECOVERY ON FLIGHT OPERATING COSTS:

EU and Japanese legislation provide for VAT recovery possibilities and exemptions on fuel and certain operating expenses. These opportunities apply to airline, general business aviation operators as well as corporate owners. There are also recovery opportunities on services relating to real estate, such as aircraft parking and storage, and services considered to be "used and enjoyed" where supplied.

Recover VAT charged on:

• Fueling services

• Stock fee

• Small load

• Airport/flowage fee

• Infrastructure fee

• Hook-up/Nozzle fee

• Navigation

• Catering costs

• Cleaning fees

• Support services

• Ground handling



2) VAT RECOVERY ON TRAVEL-RELATED EMPLOYEE EXPENSES

When flight crews land and alight in foreign territories, they will inevitably incur expenses that include

local VAT charges. These travel and entertainment costs are for business purposes and are therefore

recoverable through the EU refund directives as well as in certain Australasian regions.

• Food

• Accommodation

• Transport

• Mobile phone use

• Training

• Conferences



3) MINERAL OIL TAX RECOVERY

MOT can be a significant surcharge to the base fuel cost, and it is reclaimable by commercial aviation

operators in foreign countries, providing:

• The flight is of a commercial nature

• An operating license (AOC) exists for the flight

Not all countries charge MOT to foreign aircraft – but in reclaiming from those that do (France, Germany,

Switzerland, Austria, Finland, Canada, Belgium among others), there are complex rules that need to be

followed and specific documentation that is required.


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