- Understanding VAT recovery in aviation can significantly reduce costs and improve financial outcomes
- VAT complexity in aviation varies by jurisdiction, affecting eligibility and processes for reclamation
- Entities eligible for VAT recovery include commercial airlines, business aviation operators, aircraft management companies, and MRO providers
- Commercial airlines must often prove substantial international operations to qualify for VAT recovery
- Business aviation operators need to demonstrate predominant business use of aircraft for VAT reclaim eligibility
- Aircraft management companies can reclaim VAT for services provided to qualifying entities
- MRO providers may recover VAT based on their operational expenses and location
- Compliance with local tax laws and understanding specific jurisdictional rules are crucial for VAT recovery
- Key conditions for reclaiming VAT include proving the primary use of aircraft for business or commercial purposes
Source: vatit.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
