- VAT reclaim in aviation can be complex and challenging due to multi-national, cross-border tax strategies.
- Businesses in the aviation sector, such as commercial airlines, air charter companies, aviation management companies, aircraft leasing companies, MROs, ground-handling service providers, and aviation training institutions, have the potential to reclaim VAT.
- Eligible expenses for VAT reclaim include fuel, MRO, ground handling services, input VAT, aircraft leasing and rental costs, equipment and tools for MRO activities, ground handling costs, and instructional materials for aviation training.
- Managing multiple VAT registrations and foreign reclaim opportunities can be difficult for smaller aviation businesses.
- It is important to identify the specific eligible expenses, processes, and requirements that apply to each business and country for VAT reclaim.
- Calculating the exact VAT refund potential can be done using a VAT potential calculator.
- For more information on VAT recovery for aviation businesses, there is an in-depth guide available.
Source: blog.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.
