Biz Jets and European Import VAT - crewing issues

[Night Watch]

Thought I would put this out there and see if anyone had any advise on how to solve this problem.

I'm a German citizen living and working in Hong Kong. I am a Hong Kong resident and pay tax here. I have not lived or worked in Europe in 5 years and I have no intention of doing so in the future.

The problem I have is.... I work on a US registered aircraft that frequents Europe every month and have been informed that due to European VAT law, I can't travel between European countries without the aircraft being subject to import tax (the VAT of the country that you happen to be in). All of the pax and other crew are non European and therefore not an issue. Below is a brief outline of the rules

European Commission (the ‘Commission’) Regulation (EC) No. 993/2001 states that an aircraft that is not EU registered and is in private use may enter the EU for up to six months without liability for VAT or import duty tax. Another important issue relating to the foregoing requirements pertains to the carriage of EU nationals as passengers and crew members. If such carriage results in a determination that temporary duty free importation of the aircraft into the EU is not permitted, the aircraft would need to be imported and would be subject to normal customs duties including the VAT.

But this is not much use as.... What happens after 6 months? The owners are not going to stop flying to Europe and with me being the only European citizen on board the aircraft, I'll be out of a job!

Anyone else come across this issue?

[merlinxx]

You have a PM

[IO540]

This man should be able to help.

[CaptainProp]

This can't be correct right? Non EU aircraft, non EU owner/company but one EU (non resident) and owner will have to IMPORT aircraft and pay VAT in EU?! WTF?

Am I missing something here?

[SWBKCB]

There will be some more knowledgeable than me who will have a better context, but my limited knowledge of EU regs in a non-aviation context leads me to think that this is a key phrase

If such carriage results in a determination that temporary duty free importation of the aircraft into the EU is not permitted

i.e we aren't normally bothered, but if we think you're taking the p*ss/trying to evade the rules, we reserve the right to clobber you/make life difficult

[mutt]

may enter the EU for up to six months without liability for VAT or import duty tax

I would have thought that as you are leaving the EU each month, then the aircraft isn't staying there for 6 months. It would be different if the owners stayed in Europe for 6 months.

Mutt

[jungle drums]

As Mutt said, and also,

I take it that you are an employee, not an aircraft owner and this, combined with the fact that you are a permanent resident in HK for all purposes, is an absurdity.

This is restricting your access to gainful employment.

[Night Watch]

Thanks for the replys....

mutt the 6 month exemption is for 6 continuous calender months, the owner (management company) then has to wait another 6 months to seek further exemption.

I have spoken to senior management at 2 of the biggest Jet management companies here in Hong Kong and they have said that this issue is effecting the industry worldwide. They have put a temporary ban on employing any pilots/flight attendants from the EU until this matter is resolved.

I have sent emails to lawyers as suggested by merlinxx and IO540 and will let you all know the outcome. I must say though.... my job security is not looking very good.

jungle drums hit the nail on the head.... this is absurd!

[CJ Driver]

If your aircraft is a corporate machine that visits Europe on business, it must mean that the owners have business interests in Europe. In which case, it is trivial to "import" the aircraft into whatever EU country they have a business - assuming of course that the business is VAT registered.

[manson73]

So, any resolution on this? My owner just bought an airplane in Brazil, delivered it to China, and flying around Africa no problem. But, we're being told my someone that if we land that airplane in the Eurozone, then it will be subject to VAT tax.

Unless we fill in some form of paperwork, and clear it with the authorities first. Is anyone familiar with this?