lasse rungholm, ceo and attorney at law, opmas vat how to import aircraft into europe ·...
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International Corporate Jet Finance 2013
February 2013
VAT – how to import aircraft into Europe
Lasse Rungholm, CEO and Attorney at Law, OPMAS
VAT – how to import aircraft into Europe
About OPMAS
In business for 20 years
+1,700 aircraft handled
Invented the original 0% VAT "Danish Route” in the 1990s
Situated in Aarhus, second largest city in Denmark
Importations are handled at Aarhus airport (EKAH) - 3 km runway
In-house legal and aviation background
February 2013
VAT – how to import aircraft into Europe
All aircraft flying within the EU need to address VAT and Duty
The rules for VAT duty are not the same
The state of registry of an aircraft does not affect tax status
Aircraft must account for tax at their first landing in the EU
Every situation is different so there is not a one size fits all solution
February 2013
VAT – how to import aircraft into Europe
Prior procedure for importing through UK and Denmark at zero rated VAT for free circulation
in EU eliminated
Temporary admission good for infrequent visitors, but you must follow the rules
Full import is recommended for frequent visitors or where TA is not compatible
Full Import vs Temporary Admission
February 2013
VAT – how to import aircraft into Europe
Importation status versus privileges and restrictions for flying within the European Union
VAT – how to import aircraft into Europe
Full importation versus Temporary Importation
VAT – how to import aircraft into Europe
Full importation versus Temporary Importation
VAT – how to import aircraft into Europe
Full importation versus Temporary Importation
1) check local definitions of the 6 months rule if you have multiple entries.
2) check specific preconditions for this authorization. Only accepted in a few member states.
VAT – how to import aircraft into Europe
VAT – how to import aircraft into Europe
Full importation. Product for the Corporate aircraft:
For commercial aircraft, corporate aircraft and aircraft under management
No need for a new entity – the existing company will work
Owner, lessor, lessee, management company
Economical Activity required
Importing entity obtains Danish importation privileges
VAT registered in Denmark
OPMAS is acting as local Danish representative – co-liable
February 2013
VAT – how to import aircraft into Europe
Full importation. Product for the Corporate aircraft:
Based on a specific written approval / binding ruling from Danish SKAT
25% import Danish VAT calculated, 0% duty calculated
VAT is set off. No funds needed for VAT payment
Manually typed IM-A import form in English - stamped and signed by Danish Customs -
aircraft is in free circulation
Information package explaining the process. 24/7/365 hotline
We handle everything in Denmark - complete TURN-KEY solution.
Importation in Aarhus (EKAH)
Physical import overnight
February 2013
VAT – how to import aircraft into Europe
Full importation. Product for the AOC holder:
No need for a new entity - the existing company will work
Importing entity obtains Danish importation privileges
The aircraft must be owned, leased or managed by the AOC holder
The importing entity must be a holder of an AOC license issued by an internationally
recognized civil aviation authority
The Finnish Case
UK / IOM version?
Mainland Europe
OPMAS is acting as local Danish representative - co-liable
February 2013
VAT – how to import aircraft into Europe
Full importation. Product for the AOC holder:
Based on a specific written approval / binding ruling from Danish SKAT
0% import Danish VAT calculated, 0% duty calculated
Manually typed IM-A import form in English - stamped and signed by Danish Customs -
aircraft is in free circulation
Information package explaining the process. 24/7/365 hotline
We handle everything in Denmark - complete TURN-KEY solution.
Importation in Aarhus (EKAH)
Physical import overnight
February 2013
VAT – how to import aircraft into Europe
Paperwork. Every customer receive a detailed check list for documents required:
Engagement form
Company documents
Economic Activity / AOC / OS
Power of Attorney
Valuation documents
Leasing agreement
Operator or management agreement
Aircraft documents
February 2013
VAT – how to import aircraft into Europe
Temporary importation
If not Fully Imported it is a Temporary Import
Strict restrictions - see the tables in the articles
Private operations only or in/out only
NO CORPORATE FLYING outside UK!
Paperless routine - nothing is required!
No need to pay anyone anything!
EU form available if you want it!
February 2013
VAT – how to import aircraft into Europe
Pardon my English!
The Language barrier
February 2013
February 2013
International Corporate Jet Finance 2013
February 2013
VAT – how to import aircraft into Europe
Lasse Rungholm, CEO and Attorney at Law, OPMAS
Questions?