Charter & Fractional
VAT changes spur finance concerns
The recent removal of the loophole that allowed aircraft owners to import aircraft into the European Union (EU) via the UK at a zero rate of value-added ta

The recent removal of the loophole that allowed aircraft owners to import aircraft into the European Union (EU) via the UK at a zero rate of value-added tax has prospective buyers scrambling for fiscally friendly alternatives. One option is for private operators to find a way to get registered for tax purposes under a commercial aircraft operatorπs certificate, but this could subject the operator to unfavorable scrutiny by the authorities.

“Taxation is now more of a concern for financiers,” Credit Suisse vice president Isabelle Newsom told the EBAA “One Europe” regional forum in Vienna, Austria, on January 21. “Financiers are realizing that they could be liable for the tax position [of the buyer and the aircraft], and that is causing a lot of uncertainty.”