Offshore aircraft registration

[VickersV]

Does anyone have any information regarding the benefits of having an offshore registration such as that in the IOM like the M- registration,are you escaping VAT?also is it true you can operate under FAA regulations even though it is under CAA Juristiction??:confused:

[READY MESSAGE]

Give the IOM DTI a call. They are very helpful indeed. An entirely different experience to dealing with our 'friends' at Gatwick.....
Tel + 44 (0) 1624 682358

:ok:

[G-SPOTs Lost]

As far as M reg is concerned

0% Corporation tax
0% Insurance premium tax
FAA Licenses accepted
Not sure about any vat savings or benefits
Slightly more pragmatic attitude for non EASA mods on imported aircraft
Dont be drawn in on FAA Maintenance its JAR145 - line engineers need Manx validations.
M-Reg is sold as politically neutral - not going to apply with all those company coffee cup rings on your tail!
Head office for IOM is 8.30am till 5.30 and a stones throw from 'NL not 3500 miles and 6 time zones away

[VickersV]

Very informative and fascinating,i'm intrigued to find out more about the FAA aspect,is it operating those registration's outside Jar-ops,can you use FAA licenced crew and maintenance?
Thanks:ok:

[cldrvr]

You can fly N or VP-reg with FAA crew and using FAA engineers to your hearts content throughout the EU.

Corporations decide to register aircraft within the EU for tax, business and political reasons.

In the UK there is only VAT on importation of aircraft under MTOW of 8,000 kgs. There are VAT implications on the use of aircraft within the EU and there are VAT implications on the Temporary Import of private and business aircraft within the EU.

VAT and tax issues relating to the import and operation of aircraft are so complicated in the EU that they warrant an in depth consultation with an accountant.

There are further VAT and tax implications on the importation of aircaft spares and parts, on the fuel, on the use even if intercompany or private.

[flyingfemme]

The state of registration of an airframe and its VAT status in Europe are utterly unrelated.

[cldrvr]

Actually, if you register an aircraft of less then 8,000kgs in the UK VAT payment is due, if you on the other hand register said aircraft in Denmark for example no VAT payment is due, that's why Denmark is so popular as an importation country into the EU.

[ifonly]

Actually, if you register an aircraft of less then 8,000kgs in the UK VAT payment is due,

As said previously - Not True. If the aircraft is not being imported into the EU then no VAT is due - it can be G- reg and in the Channel Islands. If you register in Denmark but import it direct into the UK then VAT would be due. The registration mark has nothing to do with VAT status, it's all down to where it is based ,who is using it and the weight.

[G-SPOTs Lost]

Not forgetting the new GST in Jersey 6%!

WRT FAA Maintenance, dont be under any illusions, you may be able to adopt a FAA program, but you will need a suitable contracted organisation to implement it who will need manx approval, assuming your line maintenance is not going to be done by a member of that organisation, he/she will need to be licensed on type and have a manx validation. Otherwise you may under certain circumstances be able to have a non typed guy possibly perform certain tasks with an A&P but for each task he will need to have received training for each from your 145 place and he will need to be validated.

Its not as straightfoward as some might have you believe, the main benefits for the M reg are ease of use on the rare occasions that you need to speak to them. RVSM/MNPS approvals are a joy to apply for.

Would second Ready Message's suggestion and give the Director a call and speak to him directly, last time I rang in he actually answered the call himself after 4 rings!

The IPT saving is a significant sum in itself

[Phil Brockwell]

Going back to the Denmark method, am I right in thinking that a percentage charge is levied as oppose to a VAT? Anyone heard of a similar process for Finland?

Phil

[AA717driver]

Would there be a benefit for a U.S. contract pilot to get a IOM license? TC

[ifonly]

am I right in thinking that a percentage charge is levied as oppose to a VAT?

Phil - there is no charge by the Danish Government. The only fee is charged by the 'specialist' companies who charge for doing a job that any decent freight agent could do.

Not heard of anything similar in Finland it would depend on their VAT rate for aircraft.

[G-SPOTs Lost]

AA717

There is not a manx license per se, the validation is issued for you to fly a specific aircraft.

The manx registry appears to want to know who is flying what and for whom.

The paperwork for a validation is the usual license/medical but then in addition RVSM/MNPS proof of training and interestingly a letter of request from the airframe operator.

You get a validation for that airframe for that operator, the validation remains with the aircraft documents.

If you get a gig on a M reg aircraft, if its a rush job they will scan the validation into a computer file and email it to you, normally that day. Say if you needed it in 60 minutes knowing the individuals involved they would probably oblige.

[VickersV]

So if your flying a M- registered aircraft could you effectively use Faa licenced crew,so they would just need to get an iom endorsement to operate the aircraft?
Also can you operate these aircraft commercially or just in private ops?

[Phil Brockwell]

M Reg is for Private ops only.

Phil

[AA717driver]

Thanks, G-SPOT! I'm headed toward the contract world and figured the more countries' endorsements the better. TC

[VickersV]

Why can you not operate commercially on the IOM register??

[G-SPOTs Lost]

The oversight burden would be too much for the IOM, they are a small unit within the IOM DTi, commercial ops is not where they want to be.

They are looking for professionally run private operators, they have initially contracted out their airworthiness department to Baines and Simmons to give them the full functionality from day 1. But the fact that they have subcontracted away (for the time being) 1/2 their ANO so to speak gives you an idea about the scale of the IOM ACR

They dont want to become the CAA - thats a good thing

Now if a large fractional Subpart K operator decided to commence ops / switch over to the IOM then they might look at it.

Its a prestige thing that puts the IOM firmly in the front of CEO/Chairmans minds. The IOM superyacht register has been a tremendous success, with nearly 60 yachts registered and the A/c registry well on track to having 100 a/c registered by the end of 08