Program Guides
For Aircraft Management Companies
Refunds of German Jet Fuel Excise Tax ("MOT")
What Operator Types are eligible to seek refunds of the German excise tax on jet fuel ("MOT”)?
Aircraft Management Companies
Scheduled and Cargo Carriers Incurring MOT in error
Government Operators
Air Ambulance Services
Other Operators Engaged in “Aerial Work” such as Ferry Transport
Q: How much is MOT?
A: Since adopting the Euro currency in 2002, the German MOT rate has been €654.50 per thousand litres, or, using currency exchange rates in May 2024, about $2.65/USG, plus 19% German VAT of about $0.50/USG, indicating a total tax burden of $3.15/USG.
Q: As an aircraft management company, we operate charter flights under our Air Operator Certificate (US = Air Carrier Certificate) as well as owner flights. Can MOT incurred to fuel owner flights also be refunded?
A: Yes, depending on the terms contained within your management agreements with the aircraft owners.
Q: My management company is eligible for VAT exemption under the "airline" VAT rules. Are we also eligible for MOT exemption?
A: Probably, at least on your charter flights. We’re glad to discuss the details with you. The VAT and excise tax laws do differ considerably.
Q: Do we need to supply "original" MOT invoices to VATAmerica?
A: No.
Q: And this MOT is subject to a refund?
A: Yes, for MOT charged on uplifts during the current and one preceding calendar year.
Q: Any other significant conditions for MOT refunding?
A: Yes. As required, compliance with the German passenger duty, or German Aviation Tax (GAT), is a pre-requisite for MOT refunding by management companies and other operators. VATAmerica has partnered with FCC Aviation to provide highly efficient GAT compliance for VATAmerica clients.
Q: We purchase fuel in Germany through direct accounts with local suppliers as well as through our accounts at various intermediary suppliers. What documentation is required for MOT refunds?
A: For many direct suppliers, like Total and AirBP, we can access your online invoicing system to retrieve the necessary invoicing. For participating intermediary suppliers, we have arranged to obtain the necessary invoicing directly from their electronic invoicing systems for you. Depending on the nature of your operations, additional documentation concerning your aircraft and your operations should be submitted with MOT refund applications. VATAmerica has established document collection processes to facilitate this function.
Special MOT 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.
November 2024
