Technical Resources

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VATAmerica seeks to reduce costs for companies operating throughout Europe. We do this not only by reducing or eliminating our client's European tax costs through available VAT refunds and exemptions, but also by providing information that will assist in helping you make the best decision to benefit your company's profitability.

Below are some links and information you may find useful:

General Overview

General Aviation Resources

VAT Charts

Let us know your type of operation and home country and we’ll send you a customized chart showing European tax refund and exemption opportunities specific to your operation.
 

Technical Materials

  • Memorandum: Blocked VAT
  • EU VAT Directives
    • The Principal VAT Directive contains the overall EU VAT Rules that Member States are supposed to enact into their national legislations.
    • The 8th VAT Directive (now, 2008/9/EC) allows companies registered in the European Union to recover VAT on business expenditures throughout the EU.
    • The 13th VAT Directive allows companies located outside the EU to recover VAT on EU business expenditures from certain countries.
    • The EU Energy Tax Directive contains overall Customs legislation, to be enacted into the national legislations of Member States, governing excise taxes on energy products, including jet fuel (CN 2710 1921)
    • The Place of Supply – Cross-Border Services VAT Directive (2008/8/EC) provides special rules to determine the “place of supply” of most services supplied cross-border.  For B2B services, the general rule is for VAT exemption on cross-border services except for services relating to local real estate or services “used and enjoyed” in the supplier’s country.

 

VAT Registration Numbers Validity

To verify the validity of a VAT number issued by any EU Member State, visit the VAT Information Exchange System (VIES) website.


 

ECJ TAX CASE LAW AFFECTING GENERAL AVIATION

  • EU TAX Cases Affecting General Aviation:
    (VATAmerica’s Favorites)
    A Oy, C-33/11 (19 July 2012).  European Court of Justice (ECJ) delivers a roadmap allowing an individual purchasing and using an aircraft for personal purposes to achieve VAT exempt status as an “airline operating for reward chiefly on international routes” under Article 148(e) of the Principal VAT Directive.
     
    Cimber Air A/S, C-382/02 (16 September 2004).  ECJ rules the “airline” VAT exemption covers all purchasing by an airline of goods and services used for the operation of its aircraft, not merely those purchases supporting its international flights.  Notwithstanding Cimber Air, many fuel suppliers and intermediaries continue to grant VAT exemption only for charter flights regardless of the purchaser’s overall status as an “airline”.  Most tax authorities, with the exception of the UK HMR&C, have not formally adopted the ECJ’s opinion in Cimber Air.      
     
    Fast Bunkering Klaipeda UAB, C-526/13 (5 March 2015).  ECJ holds that the VAT exemption for supplies of marine fuel to commercial ships applies, notwithstanding the interposition of intermediaries between the supplier and the ship, when the supplier has transferred the right to dispose of the fuel directly to the ship operator.  The ship and airline VAT exemptions being nearly identical, this decision could upset the general aviation sector’s reliance on “flash title” to sever the VAT link between the physical supplier and the aircraft operator.   Italy appears to be the first, in January, 2017, to formally acknowledge Fast Bunkering for supplies of marine fuel.
     
    Reemtsma Cigarettenfabriken GmbH, C-35/05 (15 March 2007).   Well-reasoned case holding that the VAT Refund Directives should not be used to recover incorrectly-charged VAT when the supplier is solvent and subject to civil liability for VAT overcharged to the customer.  Rather, the customer must seek relief from the supplier.  In close cases, this requirement often means that the supplier refunding the “incorrect” VAT may be exposed on audit without prior ruling or guidance from the local tax authority.
     
    Systeme Helmholz GmbH, C-79/10 (1 December 2011).  Germany persuades the ECJ to add a “commercial” requirement to the EU Energy Directive term granting excise tax exemptions on jet fuel used “in air navigation”, thus restricting German MOT relief away from business operators.  Coupled with Germany’s refusal to grant VAT refunds on jet fuel to non-EU corporate operators, non-refundable VAT and MOT in Germany adds €2.95, or about US$ 3.50, per USG to the after-tax cost of jet fuel in Germany for all corporate operators as well as most aircraft management company and other operators.

Articles