Are you confident that your European Tax Recovery Program recovers or eliminates VAT for your corporate flight department on jet fuel and other aircraft operating costs?
VAT Refunding
When VAT is correctly charged, the European VAT refund mechanisms generally allow refunds to corporate flight departments based in or outside of Europe.
Company flight departments based within the EU are able to recover VAT incurred throughout the EU plus in Norway and Switzerland.
For companies based outside the EU, VAT incurred on jet fuel is generally refundable in:
Austria
Belgium
Denmark
Finland
France
Ireland
Luxembourg
Netherlands
Norway
Switzerland
Non-EU flight departments are barred from VAT refunds in all 20 other EU States under the "reciprocity" rule. Also, Germany does not refund VAT on jet fuel to non-EU companies.
Fuel Supplier VAT "Exemption" Programs: Not for Corporates
MYTH: WE COMPLETE ANNUAL VAT EXEMPTION FORMS FROM OUR FUEL SUPPLIERS SO WE AREN'T CHARGED VAT ON EUROPEAN JET FUEL.
TRUTH: Corporate operators do not hold Air Operator Certificates (AOC) or, for US-based companies, Air Carrier Certificates (ACC), authorizing carriage of passengers or cargo for compensation. Therefore, corporate operators can not qualify as "airlines operating for reward" and thus do not qualify for the European "airline" VAT exemption.
However, corporate operators may qualify for VAT exemption on jet fuel in three important countries, and these fuel supplier annual "declaration" or "exemption" forms seek to document the customer's "business" status in these countries.
Special VAT Refund Rules For Jet Fuel in UK, Italy, Spain
Special local rules apply in the UK, Italy and Spain, where VAT should generally not be charged on jet fuel uplifted to business flights on aircraft departing the country (UK and Spain) or departing the EU (Italy). Vendor credits may be available in case VAT is charged incorrectly in these three countries.
B2B Cross-Border VAT Exemption on Most Services
Corporate operators are eligible for VAT exemption on most services supplied across EU borders. An "included" feature of all VATAmerica engagements, this special program is described more completely in the B2B VAT Exemptions Program Guide.
Electronic Invoice Delivery
VATAmerica maintains strong working relationships with many direct and intermediary fuel suppliers, FBO's and other GA industry vendors. Electronic invoice data and images for our clients are delivered automatically to us daily or monthly.
Our clients benefit significantly from these relationships:
- We constantly monitor each client’s “inventory” of refundable VAT by country,
- We routinely request vendor credits for incorrectly charged VAT, and
- Our systems capture all VAT invoicing from participating vendors, assuring maximum VAT refunding and exemptions.
And, fuel suppliers partnering with VATAmerica benefit their customers by delivering “after tax” fuel pricing when possible!
VATAmerica's European Tax Recovery and Exemption programs help hundreds of general aviation and other operators to minimize their European indirect tax costs.
Special Refund Reporting for Corporate Flight Departments
For all tax refunds, VATAmerica sends Notices of Refund including specialized reports detailing the cash distribution subtotaled by the tail number of the aircraft that incurred the tax. These reports facilitate appropriate accounting treatment. As requested, VATAmerica can deliver customized reporting to match your internal accounting needs.
VATAmerica's European Tax Recovery and Exemption programs help hundreds of general aviation and other operators to minimize their European indirect tax costs.
December 2020
Does your European Tax Recovery Program recover VAT incurred on crew ground costs? jet fuel and other aircraft operating costs?
Which European Countries are BEST for VAT recovery on crew costs?
BEST: UK (VAT = 20%)
HONORABLE MENTION: Austria (10-20%), Denmark (25%), Finland (8%), Germany (7%), Netherlands (6%), Norway (8%), Switzerland (3.8%)
Do we need to supply “original” VAT invoices to VATAmerica?
No. And there is no need for anyone to disrupt your operations by rummaging through your employee files.
As companies have shifted their employee expense management to electronic platforms, we have developed secure and comprehensive electronic mechanisms to access these platforms as well as corporate credit card data. We can then extract relevant data and capture the necessary invoices to support VAT recovery for both EU-based AND non-EU corporate flight departments.
Heres How It Works
Our proprietary Sprinter Data Capture technology maximizes VAT recovery, minimizes human effort and produces meaningful analysis and reporting.
Special Refund Reporting for Corporate Flight Departments
For all tax refunds, VATAmerica sends Notices of Refund including specialized reports detailing the cash distribution subtotaled by the tail number of the aircraft that incurred the tax. These reports facilitate appropriate accounting treatment. As requested, VATAmerica can deliver customized reporting to match your internal accounting needs.
VATAmerica's European Tax Recovery and Exemption programs help hundreds of general aviation and other operators to minimize their European indirect tax costs.
December 2020
Your general aviation operation can achieve significant and continuing cost savings by avoiding VAT completely on most ground services at FBO’s, air traffic control like EuroControl and many other services incurred in operating your aircraft for business or governmental purposes in the European Union!
B2B Cross-Border VAT
Exemptions on Services
When your European Union suppliers of aircraft services have proper documentation of your “business” status, special VAT rules adopted in 2008 allow them to exempt many of their charges from local VAT. As EU VAT rates average about 23%, taking advantage of this exemption is a very simple and effective way to reduce costs. Many suppliers will grant credits of previous VAT charges too. VATAmerica has a well-developed program to handle this for you.
How does the program work?
Our EU B2B VAT Exemption Program provides necessary company documentation for VAT exemptions in accordance with the EU VAT “place of supply” rules adopted in 2008. For US-based clients, this document will be IRS Form 6166, “Residency Certificate”. For non-US based clients, this will be a copy of a government issued tax registration certificate or Certificate of Status (COS) issued by your local VAT, GST or corporate tax office.
Does this apply to fuel?
No.
Does VATAmerica have to submit my COS to the vendors?
No. You are able to submit your evidence of being a “business” directly to your vendors.
Most of our European handling and ground services are ordered through an Intermediary Supplier. Any way to avoid VAT on those charges?
Most Intermediary Suppliers have not taken advantage of the opportunity to explore this cost savings for their customers.
Special Refund Reporting for Corporate Flight Departments
For all tax refunds, VATAmerica sends Notices of Refund including specialized reports detailing the cash distribution subtotaled by the tail number of the aircraft that incurred the tax. These reports facilitate appropriate accounting treatment. As requested, VATAmerica can deliver customized reporting to match your internal accounting needs.
VATAmerica's European Tax Recovery and Exemption programs help hundreds of general aviation and other operators to minimize their European indirect tax costs.
December 2020