Looks Like E.U. Aviation Market Is Going To Take A Big "VAT" Hit in 08'
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Location: Portland, OR
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Looks Like E.U. Aviation Market Is Going To Take A Big "VAT" Hit in 08'
Discussing things with my Danish VAT guys it looks like the Danish are changing their tax laws.
The 0% VAT for importing Aircraft Via Denmark is changing next year and VAT will be raised to 25% on aircraft and many other items. I am sure this will affect the market there dramatically and trickle down to us ferry pilots moving these aircraft to the EU.
Steven L Rhine
International Ferry Flights
+1-503-475-3347
http://www.internationalferryflights.com
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Message From Danish Importer,
The EC sixth Directive is implemented in the EU countries, and in accordance with the directive it is possible for different EU countries to choose various implementation. According to the section 34(1)(8) if the Danish VAT act the sale and lease of aircrafts is VAT exempt.
There has been indication that this current Danish section 34(1)(8)could be changed because a draft VAT act was release Friday August 24 2007 in the Danish Government. This draft act can be commented upon until 15 September, and a final decision will not be made before October or November. In the meantime it is important to remember that the potential law change will have no consequences for transaction on importation made in the past or the remaining of 2007.
We can therefore conclude that huge savings potential for aircraft transaction through Denmark are still possible for rest of 2007, and potentially longer, since a postponing of the law is likely to happen. We are monitoring the case closely and are often in contact with the Tax Ministry to follow the development.
Having the invoice complete prior to the 01.01.2008 and the delivery within the first 3 month of 2008 should also be possible with 0% VAT.
The 0% VAT for importing Aircraft Via Denmark is changing next year and VAT will be raised to 25% on aircraft and many other items. I am sure this will affect the market there dramatically and trickle down to us ferry pilots moving these aircraft to the EU.
Steven L Rhine
International Ferry Flights
+1-503-475-3347
http://www.internationalferryflights.com
----------------------------------------------------------------
Message From Danish Importer,
The EC sixth Directive is implemented in the EU countries, and in accordance with the directive it is possible for different EU countries to choose various implementation. According to the section 34(1)(8) if the Danish VAT act the sale and lease of aircrafts is VAT exempt.
There has been indication that this current Danish section 34(1)(8)could be changed because a draft VAT act was release Friday August 24 2007 in the Danish Government. This draft act can be commented upon until 15 September, and a final decision will not be made before October or November. In the meantime it is important to remember that the potential law change will have no consequences for transaction on importation made in the past or the remaining of 2007.
We can therefore conclude that huge savings potential for aircraft transaction through Denmark are still possible for rest of 2007, and potentially longer, since a postponing of the law is likely to happen. We are monitoring the case closely and are often in contact with the Tax Ministry to follow the development.
Having the invoice complete prior to the 01.01.2008 and the delivery within the first 3 month of 2008 should also be possible with 0% VAT.
