International Taxes

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U.K. Departure Duty to Rise, Long-Haul Penalty to be Eliminated
March 28, 2013
The United Kingdom announced reforms to its air passenger duty (APD), which will increase the departure tax on most business aircraft flights from the U.K. to the United States, but will likely reduce the rate for longer flights from the U.K. to Asia, Latin America and Australia. The APD, which has been in place for airlines since 1994 and was first applied to business aircraft in 2013, is charged per passenger and has always varied based on the flight’s destination and the seat configuration of the aircraft. Read more about changes to the APD.
The UK's New APD Takes Effect: NBAA Has the Story
March 22, 2013
For NBAA Members headed to the United Kingdom, April 1 brought about the imposition of a new aviation tax – the Air Passenger Duty. Although this tax has applied to commercial passengers departing the UK since 1994, the APD is being imposed on business aviation operators for the first time, and even those who are familiar with it concede it can be confusing. The APD applies solely to flights departing the UK, and varies according to the weight of the aircraft, the passenger capacity and the distance it travels. Listen to this week's edition of the NBAA Flight Plan podcast and read more about the new Air Passenger Duty.
Italian Parliament Provides Tax Relief for Visiting Aircraft
Implementation of UK Air Passenger Duty
March 4, 2013
In preparation for the April 1, 2013 implementation of the Air Passenger Duty (APD), the United Kingdom Revenue and Customs Agency has issued additional guidance. The APD is an excise duty which is due on chargeable passengers being transported from a UK airport on a qualifying aircraft. Learn How to Register and Compy with the APD
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
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