VAT Relief for Foreign Business Aircraft Confirmed by EU

This week terms were clarified for the temporary admission of foreign business aircraft into the EU by a published paper, confirming that conditional VAT relief will be granted.

The move followed requests from the International Business Aviation Council (IBAC), as many business aircraft operators were uncertain and needed clarification.

IBAC director general, Kurt Edwards, welcomed the paper and said, “This paper issued by the European Commission clearly resolves the confusion. As long as the operator meets the conditions for temporary admission, it can use the process to receive conditional relief from the Value-Added-Tax and Customs Duties obligations and operate to, from and within the EU.”

When a foreign-registered aircraft flies from a non-EU country and conducts flights within the EU, it can be eligible for temporary admission and therefore can claim conditional relief from taxes and duties. Foreign-registered aircraft are still subject to VAT and duty when they are permanently imported.

The latest guidelines from the EU clearly explain the previous confusion and remind operators that these conditions apply only to aircraft that are being flown for private use and do not include commercial carriers.