EU Fuel VAT Exemption

Even though the EU is essentially “one market” for trade purposes, individual countries can still assess their own taxes, including value added tax (VAT). VAT rules and rates related to aircraft fuel and exemptions vary from country to country. As VAT varies from 7.6% to 25% of the total fuel purchase, knowing when to pay and when you are exempt can add up to big savings. Some countries also provide mineral oil tax (MOT) exemptions, which differ from VAT exemptions.

Who Qualifies for Fuel Exemptions?

Article 148 of the EU VAT Directive provides an exemption for fueling and provisioning of aircraft “used by airlines operating for reward chiefly on international routes.” There are no provisions for business aircraft fuel exemptions from the EU itself, but there is some leeway as to “airline” definition.

Most EU member countries allow “operating for reward” to mean that one corporate division can charge another division for the flight. “Chiefly on international routes” can mean anything from 51% (in most countries) to 80% (in France and Belgium) of flights must be international routes. Since the rules for VAT and MOT exemptions vary widely from country to country, check with your Jetex representative for clarification and recommendations along your route.

Obtaining Exemptions During Refueling

Jetex customers fueling at a location belonging to the Jetex fuel network stand to receive eligible VAT exemptions when they pre-arrange fuel with their Jetex representative.

At non-Jetex locations, or if you have not arranged with a Jetex representative in advance, speak to the fuel provider before they begin fueling your aircraft. You may need to present an Air Operator Certificate (AOC) if you have one, and be sure that your flight is indicated as “commercial” or “non-leisure” on the fuel ticket.

Reclaiming VAT

If no exemption applies and VAT is paid on aviation fuel purchased for business use, the business may apply for a refund. Jetex provides VAT-compliant invoices to streamline this process, and will assist you in applying for your refund.

Jetex VAT Program

The best way to ensure that you do not pay excess fuel VAT is to register for the Jetex EU VAT exemption program, which is currently available in the following countries:

  • Austria
  • Belgium
  • Bulgaria
  • Cyprus
  • Czech Republic
  • Finland
  • France
  • Germany
  • Ireland
  • Italy
  • The Netherlands
  • Norway
  • Poland
  • Portugal
  • Romania
  • Spain
  • Switzerland
  • United Kingdom

Contact your Jetex representative for more information about fueling with Jetex or read more about flying into the EMEA region.

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