For Corporate Flight Departments

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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!

Visit www.vatamerica.com to learn more about VATAmerica and our European Tax Recovery and Exemption programs helping hundreds of general aviation operators to minimize their European indirect tax costs.

How much is TIC?
For 2017, the TIC rate was €361.90 per hundred litres, or, using currency rates at January, 2018, about $1.70 / USG, plus 20% French VAT of about $0.34 / USG, indicating a total tax burden of $2.04 / USG.  The TIC rate for 2018 has increased nearly 10% to €397.90 /hl, or about $1.87, plus VAT of $0.37, a total tax of $2.24 / USG.  The TIC rate increments annually up to €504.00 / hl in 2022, a total tax burden of $2.84 / USG at current fx.
And this TIC is subject to refund when incurred by a corporate flight department that does not hold an AOC/ACC certificate?
Yes, for TIC charged during the current calendar year and during the two preceding calendar years, subject to first obtaining a TIC Identification Certificate from French Customs, or having been issued a similar certificate (“6832 Certificate”) under the prior French Customs rules.
 
TIC Identification Certificate

TIC refund claims filed after April 20, 2017 for corporate flight departments must be accompanied by a “TIC Identification Certificate” issued by French Customs. Once granted, these certificates also allow for exemption from TIC on future uplifts and can be renewed after 5 years. Similar certificates (“6832 Certificates”) previously issued have the same effect. Working with one of the “Big 4” accounting firms, VATAmerica has applied for and received many of these certificates for corporate clients.

Do we need to supply "original" TIC invoices to VATAmerica?
No.
We purchase fuel in France through direct accounts with local suppliers as well as through our accounts at various intermediary suppliers. What documentation is required for TIC refunds?
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.

Visit www.vatamerica.com to learn more about VATAmerica and our European Tax Recovery and Exemption programs helping hundreds of general aviation operators to minimize their European indirect tax costs.

Which type of crew expenses in Europe might be VAT-Refundable?

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.

Visit www.vatamerica.com to learn more about VATAmerica and our European Tax Recovery and Exemption programs helping hundreds of general aviation operators to minimize their European indirect tax costs.

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.


Visit www.vatamerica.com to learn more about VATAmerica and our European Tax Recovery and Exemption programs helping hundreds of general aviation operators to minimize their European indirect tax costs.