International Taxes

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Italian Parliament Provides Tax Relief for Visiting Aircraft
April 30, 2012
Last week, the Italian Parliament passed legislation that allows non-Italian registered private aircraft to spend up to 45 consecutive days in Italy before being subject to a costly "luxury" tax. Before this change, business aircraft that spent more than 48 consecutive hours in Italian territory were subject to the tax, which could amount to over 300,000 euros depending on the aircraft weight. The legislation must now be officially published and signed by Italy's president, both of which are expected to occur this week. Once the legislation is effective, it will be made retroactive back to December, when the original tax legislation was implemented. Learn More
Implementation of UK Air Passenger Duty Delayed
December 16, 2011
After a public comment period in which over 500 entities, including NBAA, submitted comments, the UK Treasury elected to delay implementation of the Air Passenger Duty (APD) on business aircraft operators until April 2013. In a joint statement, the British Business and General Aviation Association (BBGA), British Helicopter Association (BHA) and European Business Aviation Association (EBAA), also explained that some of the most harmful provisions of the APD proposal have been mitigated. Learn More
Status Report: United Kingdom VAT Changes
January 10, 2011
As of January 1, aircraft over 8,000 kilograms (17,635 pounds) maximum takeoff weight are no longer eligible for a zero VAT rating using the prior importation policy. Although this is a major policy change, operators still have a number of options to manage VAT issues and avoid facing an assessment of VAT on the value of the aircraft. The temporary admission process for aircraft remains in effect and there is a new importation process that certain operators may be able to utilize. Learn More
NavCanada Warns of Fraudulent Billing Scheme
November 24, 2008
NavCanada has issued a notification that its customers are being targeted by a fraudulent e-mail billing scheme. The notification warns that operators who receive an e-mail regarding outstanding debt to NavCanada should disregard it. NavCanada does not send customers billing notices via e-mail unless customers have specifically requested PDF delivery. NavCanada bills are otherwise always sent by traditional mail. NavCanada has contacted the authorities and is investigating the fraud. View a sample of a typical fraudulent message.
Business Aircraft Operations in Canada: Avoiding Cabotage
January 23, 2006
As more companies engage in international operations, especially with our neighbors to the north, questions arise with regard to business aircraft operating between the U.S. and Canada and operations within Canada. Operators must ensure they avoid engaging in cabotage, which generally is the carriage of goods or passengers for remuneration within the same country. In Canada, cabotage comes under the authority of the Canada Customs and Revenue Agency (CCRA), as well as the Canadian aviation economic authority, the Canadian Transportation Agency (CTA). Learn some specifics about business aircraft operations in Canada by reading the article, "Canadian Cabotage – FAR Part 91 Operations."
United Kingdom Withdraws Value Added Tax (VAT) Decision on Refund Claims
December 24, 2005
Companies operating flights to the United Kingdom commonly reclaim the VAT paid on crew hotel and related travel expenses. In most cases, the employee's name and address appears on the travel receipts, not the name of the company (which generally is the entity requesting the refund). Earlier this year, the United Kingdom determined that in order for a refund request to be valid, the receipt must match the name of the entity requesting the refund. Review the UK HM Revenue & Customs Information Bulletin 2/2005 (55KB, PDF).

Foreign Taxation and Operations Resources