The European Commission published a working paper this week that clarifies terms related to the temporary admission of aircraft into the European Union (EU), making clear that many business aviation flights are indeed eligible for temporary admission when flying within the EU. According to NBAA, many business aircraft operators had been uncertain whether they were eligible for temporary admission or could be subject to value-added taxes (VAT) and other duties when flying within the EU. The International Business Aviation Council (IBAC) had requested clarification from the EU.
“This paper issued by the European Commission clearly resolves the confusion,” said IBAC director general Kurt Edwards. “As long as the operator meets the conditions for temporary admission, it can use the process to receive conditional relief from value-added tax and customs duties obligations and operate to, from and within the EU.”
In many EU countries, foreign-registered aircraft are subject to VAT and other duties when imported. However, when a foreign-registered aircraft flies from a non-EU country and then conducts flights within the EU, that activity can be eligible for temporary admission and conditional relief from taxes and duties. The conditions include a requirement that the aircraft be flown for private, not commercial, use, though these designations were previously subject to interpretation across the EU. The EU’s latest guidelines eliminate these various interpretations.