Program Guides
For All General Aviation Operators
B2B Cross-Border VAT Exemptions on Services like ATC and Ground Handling
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, charter, aircraft management or governmental purposes in the European Union!
B2B Cross-Border VAT Exemptions on Services
When your European Union, UK and certain- other 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.
Q: How does the program work?
A: 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.
Q: Does VATAmerica have to submit my COS to the vendors?
A: No. You are able to submit your evidence of being a “business” directly to your vendors.
Q: Does this apply to fuel?
A: No
Q: Most of our European handling and ground services are ordered through an Intermediary Supplier. Any way to avoid VAT on those charges?
A: Most Intermediary Suppliers have not taken advantage of the opportunity to explore this cost savings for their customers. When your intermediary supplier / trip planner is not registered for local VAT, the VAT charges they are billed will often simply be passed along to you, their customer, with no opportunity to eliminate or recover those VAT charges.
Special VAT Refund Reporting
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 customer account credits in appropriate cases, promoting customer awareness of the management company’s attention to cost management.
VATAmerica’s European Tax Recovery and Exemption programs help hundreds of general aviation and other operators to minimize their European indirect tax costs.
May 2024
