Tax
4. Will the relevant law require any export tax and/or customs duties to be payable on the export of an aircraft in the relevant jurisdiction?
Austria
Export of an Austrian imported aircraft from Austria usually does not trigger any taxes or duties. However, if an aircraft is sold for export and is not otherwise exempt from VAT, the seller must obtain proof of export or he will be liable to pay VAT at the rate of 20%.
Brazil
There are no export taxes. Note, however, the reply to Question 5, which discusses the possibility of import-related taxes being assessed at the time of export.
Colombia
In Colombia, exports are not taxed by sales tax or tariff levies.
Czech Republic
Exporting an aircraft from the Czech Republic does not usually trigger export taxes or customs duties; however, this always depends on the type and use of aircraft and the destination country to which the aircraft is being exported. However, as mentioned above the seller must be able to prove that the aircraft has actually been exported out of the Czech Republic; otherwise, it will be liable to Czech VAT at the current rate of 21%.
Germany
No tax or customs duty is payable in Germany on the export of an aircraft from Germany.
Greece
(a) There are no export taxes. As regards VAT in particular, article 24 par. 1(a) of the VAT Code, delivery of goods, by a seller established and registered for VAT in Greece to a purchaser established in a non EU country, is expressly exempt from Greek VAT.
(b) As regards customs duties, those are only imposed on imported goods. There are no duties on exports.
Israel
As aforementioned, export transactions are generally VAT-exempted, provided that the asset being sold (an aircraft) was in fact physically exported from Israel. Likewise, no customs duties are imposed in respect of export transactions.
Italy
No, it will not. However, if an aircraft is sold for export and is not otherwise exempted from VAT the seller must obtain proof of export or it will be liable to pay VAT at the rate of 22%.
Kenya
As highlighted in question 3 above, the exportation of aircraft will be subject to VAT at the rate of zero percent. No other taxes apply.
Mexico
Please refer to question 3.
Nigeria
Excise duties are not payable on the export of an aircraft as aircraft are not listed as excisable goods under the Customs, Excise, Tariff ETC (Consolidation) Act (“CET Act”)
Norway
Export of an aircraft from Norway does not, as a starting point, trigger any tax. However, the exporter is, among other things, required to obtain export license from the relevant Aviation Authority which is subject to cost-based governmental fees.
Panama
Export taxes do not apply in the Republic of Panama.
Peru
In accordance with Article 33 of the General Sales Tax, the export of goods or services is not subject to the General Sales Tax; in this case, the sale of movable goods by a person domiciled in the country to a person not domiciled is considered an export of goods, regardless of whether the transfer of property occurs in the country or abroad, provided that such goods are subject to the definitive customs export procedure.
With respect to customs legislation, Article 60 of the General Customs Law provides for a definitive export regime that allows national or nationalized merchandise to leave the customs territory for final use or consumption abroad, which does not affect any tax.
Portugal
No.
Puerto Rico
The goods comprised in the cases indicated below shall be exempt from the payment of PR taxes:
(a) Goods in transit in Puerto Rico consigned to persons outside Puerto Rico, as stated in the shipping documents while they remain in the custody of the carrier or customs authorities, or deposited in a bonded warehouse, or in the warehouses of the shipping company that is the intermediary consignee in Puerto Rico, and that are stripped from Puerto Rico within one hundred and twenty (120) days from the date of their introduction;
(b) Goods introduced into Puerto Rico consigned to dealer-importers with the intention of exporting them while they remain in the custody of the customs authorities or in the foreign trade zones in Puerto Rico. 13 L.P.R.A. § 31661.
Romania
No, although see above if an aircraft is sold for export and is not otherwise exempted from VAT the seller must obtain proof of export or it will be liable to pay VAT at the rate of 19%.
South Africa
- From a VAT perspective, to the extent that the seller is registered for VAT in South Africa and subject to complying with certain prescribed documentary requirements, the export of the aircraft will be subject to VAT at 0% (zero rated), except if delivery takes place in SA then VAT must be charged at 15%.
Spain
N/A
Switzerland
Export of a Swiss imported aircraft from Switzerland usually does not trigger any taxes or levies, provided that all non-Swiss maintenance incurred since the import has been accounted for Swiss import VAT. However, a Swiss seller (if an aircraft is sold for export) or a Swiss owner (if an aircraft definitively leaves Switzerland in course of a temporary admission procedure) must obtain a proof of export out of Switzerland or it will be liable to pay Swiss VAT at the current rate of 7.7%.
United States (Miami)
Possibly, depending upon applicable treaties. Prior to arriving in the United States, importers should arrange for a formal entry of the aircraft as cargo, which may require the service of a customs broker or posting of a bond.
Florida’s use tax may apply and be due on any aircraft imported or caused to be imported from a foreign country into Florida for use, consumption, distribution, or storage to be used or consumed in this state. It is immaterial whether such aircraft was used in another country for a period of six months or more prior to the time it is brought into Florida. Furthermore, tax paid in another country will not be recognized by the State of Florida in arriving at the tax due. More details regarding Florida’s use tax referenced in number 10 below.