6th VAT directive
Council Directive 77/388/EC, known as the 6th VAT directive, was the main basis of the system of value added tax in the European Union. It was amended on many occasions and replaced on 1 January 2007 by a single consolidated text, Council Directive 2006/112/EC or the VAT directive.
Air Operator Certificate. Airlines and charter companies all have an AOC and all qualify for our procedure even if the aircraft is a leased aircraft.
Customs document used for transit and temporary importation of goods for specific purpose e.g. for displays, exhibitions and fairs as professional equipment and as commercial samples.
The ATR.1 Certificate is a customs document to benefit from cheaper rates of duty if an aircraft is sold from the EU to Turkey or vice versa. The certificate can be issued up to 3 years after the EU importation.
C88 import form
Import details are usually collected through the submission to Customs of the Single Administrative Document (SAD). This document, in the same format, is used throughout the EU to declare imports – each EU member state having it printed in their own language. In the UK it is known as form C88. See also IMA.
In relation to the EU and VAT cabotage is the transport of goods or passengers between two points inside the EU by an aircraft registered outside the EU. Most EU member states do not permit cabotage flying by non EU registered aircraft without proper documentation. Please note that the 9 so-called Freedoms of the air are not related to VAT issues. See also “Freedoms of the Air”.
The Chicago convention from 1944 applies to commercial aviation (carrying paying passengers, transporting cargo or mail) and includes now 9 freedoms rights granting a country’s airline the privilege to enter and land in another country’s airspace. Please note that the 9 so-called Freedoms of the air are not related to VAT issues. See also “Freedoms of the Air”.
In relation to VAT corporate use is all flying undertaken by a company engaged in economic activity such as flying a corporate jet with employees and board members etc. It is usually defined as private flying by aviation regulators however for VAT purposes it is usually considered commercial flying and qualifies for our procedure.
The level of customs duty is 0% for all aircraft already registered and airworthy when imported into Denmark. The duty will be 0%, 2.7% or 7.7% depending on weight and type of registration in other EU member states.
The EU customs legislation is contained in the Customs Code and the Code’s implementing provisions. Implementing powers are conferred on the EU Commission.
Customs Code UCC
The new EU customs code; the Union Customs Code (UCC), became effective May 1st 2016. The customs code is the foundation for all customs work in the EU and all EU member states must alter their local customs laws and align them with the new customs code.
A place authorised by Customs for the storage of non-community goods under duty and VAT suspension.
Certain goods entered for “free circulation” at the time of importation may be given favourable tariff treatment on condition that they are put to a prescribed end-use. An importation handled by OPMAS will include an end-use relief for the aircraft.
The European Union consisting of 28 independent member states.
Croatia – new EU member from July 1st 2013
EU - special member state territories
The following territories are not a part of the EU
- Greenland together with a series of British, French and Dutch overseas territories, e.g. the New Caledonia, the Netherlands Antilles and the British Virgin Islands
- Faroe Islands
- The Channel Islands, including Jersey, Guernsey, Alderney and Sark
- Andorra, San Marino and the Vatican City
EU territories outside the VAT area
There are a number of territories within the EU where the territory is not a part of the EU VAT area.
- Finland: Åland Islands
- France: The overseas departments, including the French Guiana, Martinique, Guadeloupe and Réunion
- Greece: Mount Athos
- Italy: Livigno, Campione d’Italia and The Italian part of Lake Lugano
- Spain: Ceuta, Melilla, The Canary Islands, including Gran Canaria, Tenerife, Fuerteventura, Lanzarote and Gomo
- Germany: Helgoland and Büsingen
- The Great Britain: Gibraltar
- Cyprus: North Cyprus
Countries outside the EU but within the VAT area
A series of countries and territories outside the EU shall be considered a part of the EU VAT area.
- Isle of Man
- Cyprus: The base areas of the United Kingdom, including Akrotiri and Dhekelia
EUA import form
Import details are usually collected through the submission to Customs of the Single Administrative Document (SAD). This document, in the same format, is used throughout the EU to declare imports – each EU member state having it printed in their own language. In mainland Europe (except the UK) the import form is called the EUA, when the aircraft is imported from Norway, Switzerland and Liechtenstein. Up to 2008 the form was called the IM4. See also C88 and IMA.
An export document is the official proof that an aircraft has left the EU in relation to e.g. a sale to an entity outside the EU.
The term “free circulation” is often used about imported goods which have been released for free circulation after payment of the import duties to which they are liable. Please note that the 9 so-called Freedoms of the air are not related to VAT issues. See also “Freedoms of the Air”.
Freedoms of the air
A set of commercial aviation traffic rights granting a country’s airline(s) the privilege to use another country’s airspace. Formulated as a result of disagreements over the extent of aviation liberalisation in the Convention on International Civil Aviation of 1944, (known as the Chicago Convention). The convention was successful in drawing up a multilateral agreement in which the first two freedoms, known as the International Air Services Transit Agreement (IASTA), or “Two Freedoms Agreement” were open to all signatories. Since then more freedoms of the air has been added. The treaty is accepted by more than 128 countries. Please note this is NOT related to VAT importation issues.
The ICS (Import Control System) system is run by European Customs Services to ensure the security of international trade and combat terrorism and is a parallel system to the import process. From January 1st 2011 any aircraft entering the customs territory of the EU – where the purpose of the flight is an importation – must have been cleared in advance in the new ICS system before the flight can enter EU territory. OPMAS will of course take care of the ICS clearance here in Denmark as a part of the importation.
IM4 import form
Import details are usually collected through the submission to Customs of the Single Administrative Document (SAD). This document, in the same format, is used throughout the EU to declare imports – each EU member state having it printed in their own language. In mainland Europe (except the UK) the import form was called the IM4 up to 2008. From 2008 the form is called the IMA. See also C88.
IMA import form
Import details are usually collected through the submission to Customs of the Single Administrative Document (SAD). This document, in the same format, is used throughout the EU to declare imports – each EU member state having it printed in their own language. In mainland Europe (except the UK) the import form is called the IMA, when the aircraft is imported from any country except Norway, Switzerland and Liechtenstein. Up to 2008 the form was called the IM4. See also C88 and EUA.
An import document is the official proof that an aircraft has entered the EU and the EU VAT and duty has been handled and handled correctly. An import document issued by OPMAS is a typed original import form which is always stamped and signed by Customs and will act as an effective “VAT passport” in all EU member states.
Intrastat is the system for collecting information and making statistics based on the trade of goods between EU member states. Intrastat began operation in 1993 when it replaced customs declarations as the source of trade statistics within the EU.
The Istanbul convention from 1993 is combining all the existing conventions on temporary admission/importation and aimed at simplifying and harmonizing temporary importation procedures.
In relation to VAT it means non corporate flying (such as the private owner using his Mustang mostly for private purposes like skiing trips). Private flying does not qualify for our procedure.
The Single Administrative Document (SAD) is the basis form for customs declarations e.g. Importation or exportation in the EU and in Switzerland, Norway and Iceland. See also IMA and C88.
T1 transit document
The T1 transit procedure enables goods to move freely through EU territory to a specific destination where the importation will take place. It takes the form of a temporary suspension of the duties and taxes normally due on goods imported into the customs territory.
The T2L form is used throughout the EU and in Switzerland, Norway and Iceland for the control of imports, exports and goods in transit and is often used to document that an aircraft bought and delivered in one of the EU member states is in free circulation.
The Temporary Admission is limited to 6 months per entry and the aircraft must be owned outside of the EU, registered outside of the EU – and only made available for use within its boundaries for EU residents and/or commercially with certain restrictions. There are grey areas in relation to the usage of temporary importations as the practical interpretation of the rules varies between EU member states. Please exercise extreme caution if you are flying within the EU and you are carrying EU nationals. The temporary admission is also often called a temporary importation.
Value Added Tax is a “sales” tax levied on the supply of goods and services within the EU and the importation of goods from outside the EU. Each EU Member State has their own national VAT rules which are often interpreted differently.
VAT Information Exchange System (VIES) is the name of the system to control all intra EU VAT transactions between companies registered for VAT in the EU.
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