Importing G reg from abroad

[Pom pom]

Could anyone please tell me if duty has to be paid when purchasing an already G registered aircraft from a European Union country,and importing it to England, said aircraft to remain on the UK register? Any other pertinent information that I should know about regarding such a transaction?

All snippets of wisdom gratefully received!

[Ultranomad]

No duty is due for any transfers anywhere within the EU customs territory - that is, all of EU except Faroe Islands, Helgoland, Büsingen, Livigno, Campione and a few other similar excluded territories. Channel Islands and Isle of Man are now part of the customs territory, too.

[peterh337]

You do need to pay VAT on the import though.

You need to get, and retain, documents proving that you paid the VAT.

[stickandrudderman]

In other words, if duty has already been paid on the aircraft when it first came to the EU and you have documentary evidence of this, or if it is an aircraft that originated within the EU in the first place then no further duty is payable.

[Pom pom]

Thank you for your replies.

[gyrotyro]

Buying an aircraft

I am not sure if you are actually importing a G reg if it is already on the register?

There is no actual duty or vat payable on inter EU purchases.

It is a G reg aircraft that lives in another country end of story.

Just change the address when you buy it.

[peterh337]

There is no actual duty or vat payable on inter EU purchases.

Is that true?

If I (UK VAT registered business) sell something to a French customer, I have to charge him 20% VAT, unless he supplies me a French VAT number.

The only way that a French non VAT registered person could buy a plane from say the UK, free of VAT, is if the seller was not a VAT registered individual or business.

Any such plane will be more expensive than "plus VAT" ones, because the first non VAT registered person/business that owned it had lost the VAT on it so they had to sell it on at a higher price. In essence there are two markets for planes: ones which are "VAT paid" and ones which are "plus VAT".

What happened a lot in the past was that Joe Bloggs went to the USA, bought a plane there, flew it to the UK, possibly but not necessarily put it on the G-reg, but never paid the import VAT.

There was a VAT amnesty, IIRC, in the 1980s, which drew a line under that, but after that you were vulnerable to getting hit for the VAT.

[wsmempson]

I bought a 1982 Saratoga via a dealer in France last year, and put it on the G-register; there was no import duty or VAT paid as it was already duty and VAT paid.

[peterh337]

You still need documents to prove VAT was paid.

Under the VAT treaty, the French are not allowed to randomly check a G-reg over VAT docs (they can do it to an F-reg, or to any non EU reg) but somebody potentially could.

[wsmempson]

I have letters from both the dealer and the owner confirming duty and VAT had been paid. Under EASA, the change of state is now a non-issue - although going back through 30 years of French tech logs to check of AD's being complied with, took a bit of work. Babelfish is your friend...

However, in practical terms, unless you are buying something out of company ownership, within the EU it is pretty well bound to be duty paid. The red-rag-to-the-bull for the customs mob are aircraft owned within European corporate structures or on the November register. It's not right, but it is the way things are.

[gyrotyro]

"Importing G reg a/c"

Peter 337
"If I (UK VAT registered business) sell something to a French customer, I have to charge him 20% VAT, unless he supplies me a French VAT number."

Yes Peter, you are correct on that, but if it is a simple transaction between two private individuals then there are no taxes to pay.

It doesn't matter where the aircraft is located it is just a "G" reg a/c being re-located back to Blighty.

[peterh337]

but if it is a simple transaction between two private individuals then there are no taxes to pay.

Unless one of them happens to be a VAT registered aircraft dealer

One does need to be careful.

[gyrotyro]

"Importing G reg a/c"

Peter..

Then they wouldn't be two private individuals!

[flyingfemme]

A G reg aircraft that has been registered and kept in the Channel Islands is subject to an import requirement. The CI are (unlike IOM) not part of the EU and not part of the common VAT agreement. A VAT paid (private) aircraft on the G reg that is sold to a CI resident is effectively "exported" and requires an import back into the EU with the payment of any VAT deemed due at that point.

[peterh337]

Then they wouldn't be two private individuals!

That's true but how do you know that the chap who sold it to the chap who sold it to you paid the VAT on it?

Passing on the plane doesn't cancel out the obligation to pay the import VAT. If it did, there would be a trivial workaround for the Cert of Free Circulation / C88 or whatever.

I don't want to sound alarmist, and owners of ancient G-regs (which have been in the UK for many years) who pop across to France etc, should have nothing to fear because of the 1980s amnesty, but anybody buying a newer plane needs to get this sorted before handing over the money.

It's no different to buying a plane with no engine logs - you have to discount the price by the cost of an engine overhaul.

[Jodelman]

The CI are (unlike IOM) not part of the EU and not part of the common VAT agreement.

Just to be pedantic....... the above implies that the IOM is part of the EU which is not the case.

The Isle of Man, which is situated in the Irish Sea is not part of the United Kingdom but is an internally self-governing dependency of the British Crown. The Isle of Man is not a member of the EU but has a special relationship, which is set out in Protocol 3 to the Treaty of Accession[2]. Under this special relationship the Isle of Man accepts the free movement of goods but does not contribute to Community funds nor can it draw on such funds.

[flyingfemme]

No - it says that the CI are not part of the EU and not part of the common VAT agreement. The IOM is not part of the EU but is part of the common VAT agreement....unlike the CI.