Changes to VAT rules effecting Charters to the Continent
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Join Date: Dec 2002
Location: London
Age: 52
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Changes to VAT rules effecting Charters to the Continent
From 1st January 2010 the VAT rules have changed so that you now have to charge VAT at the place where a service is provided. This potentially causes problems conducting charter flights aboard.
Up until the change, in the case of aircraft with less than 10 seats, flights to and from Europe were zero rated under UK VAT rules. This is still the case for the portion of the flight in the UK, however I have been advised that under the new rules, the portion of the flight conducted in a foreign country is now subject to local VAT rules.
Having looked into it, it would appear that France has no minimum VAT threshold and that VAT on transportation is charged at 5%. It seems that you now have to register for VAT in each country you charter into!!! What a bureaucratic nightmare.
Does anyone have a better understanding on this? Does France/Holland/Belgium zero rate international flights?
Any help on this would be appreciated....
Thanks
Bilbo
Up until the change, in the case of aircraft with less than 10 seats, flights to and from Europe were zero rated under UK VAT rules. This is still the case for the portion of the flight in the UK, however I have been advised that under the new rules, the portion of the flight conducted in a foreign country is now subject to local VAT rules.
Having looked into it, it would appear that France has no minimum VAT threshold and that VAT on transportation is charged at 5%. It seems that you now have to register for VAT in each country you charter into!!! What a bureaucratic nightmare.
Does anyone have a better understanding on this? Does France/Holland/Belgium zero rate international flights?
Any help on this would be appreciated....
Thanks
Bilbo
