0% VAT in Denmark

[one2go]

Is it possible to import a Sportcruiser kit into Denmark and pay their 0% VAT on light aircraft and then move the kit to the UK and build it with no liability to pay UK VAT at 17.5%?

[S-Works]

AFAIU it only if it comes from outside the EU.

[mm_flynn]

I believe the concession is for Aircraft, not aircraft parts (i.e. a kit) and as Bose-X says it has to be purchased outside the EU and imported.

[nouseforaname]

i've done this one already but flew the machine back from Denmark both times. I think you would have a bit of a problem getting it back through uk customs is all....probably worth giving them advanced notice as no doubt they would impound it while they 'work round the clock' on it.

[Three Yellows]

No it doesn't have to be from outside the EU. I don't know about kits, but for already built planes, it works like this:

We bought our 'new' DA42 through Denmark earlier this year. The rules seem to be that the aircraft has to be 'used'. To be 'used' there are two rules, the plane has to be more than 3 months old and have at least 40 hours on the airframe at the point of sale to you. Ours had 40hours 5 mins on it.

The way it works is that a British Company, closely associated with the Austrian factory buys the plane new. As it is a 'within EU' between companies deal, no VAT changes hand anyway. Then when the plane is 3 months old and approaching 37 hours, you set off to Denmark with the UK salesman. In Denmark, he 'sells' the plane to a Danish company. Again this is a company to company sale and so no VAT actually changes hands. Then the Danish company sells you the plane. VAT is a consumer tax and so when they sell you the plane, they charge VAT... but its a 0% for a secondhand plane, in Denmark. You are then presented with a lovely certificate from the Danish revenue and customs to say that EU VAT has been paid on the plane, albeit at 0%. And this is all done whilst you have breakfast, so by 10.30 am you are ready to fly home.

I will PM you the details of the company to use as I don't think that I can post that here. But they were excellent and will know the answer to your question. They are also very creative so I'm sure they can help.

[IO540]

Again this is a company to company sale and so no VAT actually changes hands

Unless Denmark really has a zero VAT rate between two Danish VAT registered bodies, there is a bit more to this, because within the UK one UK company selling to another does have to invoice VAT.

Having a zero VAT rate between two VAT registered companies is of course hugely sensible and totally obvious, but the UK C&E have never had the imagination to do that.

Interesting info, 3Y. I have always known that one can get a zero VAT rate on a European-made plane but never did find out how this is done.

[London Mil]

TY, your problem was that the DA42 was classed as a 'means of transport'. In EU law this is an aircraft with a MTOW of more than 1550kg. If it were less than 1550kg it would not fall under the Notice 728 definition. Consequently, your work around relied on the ac not being 'new'. Alternatively, an ac with a MTOW of less than 1550kg is classed as any other intra-state purchase where the chargeable rate is that of the country of sale and not country of destination.
See here - http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000152&propertyType=document

[Fuji Abound]

a British Company

In Denmark, he 'sells' the plane to a Danish company

company to company sale

I0540

I think you may have misread the sequence, and therein the answer to your question.

[sternone]

Does this also works for sailboats ?

[mm_flynn]

There are very different rules for boats, cars, planes.

Remember the advice you receive here is worth exactly what you paid for it.

If you ever go down the route, forget what you have read and get professional advice from someone - like this (http://www.forestaviation.co.uk/denmark.htm) or like this (http://www.opmas.com/)

[London Mil]

A nice summary here (http://www.modernpilot.com/index.php?option=com_content&task=view&id=73&Itemid=26)

[rotorboater]

Can I buy a UK registered aircraft from the UK through a company in Denmark and get it with zero vat?

[Three Yellows]

For the best advice, talk to the people highlighted in post#10.

[London Mil]

Absolutely. Personally I would be quite happy to pay a 5% arrangement fee in order to save 17.5%:D

[Brooklands]

One2go asked:Is it possible to import a Sportcruiser kit into Denmark and pay their 0% VAT on light aircraft and then move the kit to the UK and build it with no liability to pay UK VAT at 17.5%?


I believe that a number of people (in the UK) who have ordered the Sportcruiser via the UK Agent (http://www.spriteaviation.co.uk/) are planning to use this route. You could try asking on the UK Sportcruiser Email list (http://groups.yahoo.com/group/sportcruiser/).

Brooklands