Austria

Austria has no sales tax, but only VAT. A sale or lease of an aircraft or transfer of title/interest delivered to Austria is subject to Austrian VAT unless an exemption applies.

The generally applicable VAT rate in Austria is 20%. However, pursuant to Sec. 6(1)(2) in conjunction with Sec. 9(2) of the Austrian VAT Act aircraft, specific supplies and services in relation to aircraft are under certain conditions exempt from Austrian VAT. A prerequisite for such exemption is that the respective buyer/operator is engaged in commercial air transport business, whereby the majority of turnover out of air transportation is either tax free (cross-border flights) or non-taxable (flights outside of Austria).

Hence follows that if a purchaser or lessor of an aircraft is not an airline and not in the air transport business the purchase or lease of an aircraft will not be exempt from Austrian VAT based on the general exemption clause for commercial airlines.

 However, there is another exemption from Austrian VAT provided that goods are delivered to a country outside of the European Union. Proof of export is required.

Furthermore, please note that purchase/sales contracts fall not under the list of transactions in Section 33 of the Austrian Stamp Duty Act. Thus, the signing of a purchase/sales agreement will not trigger Austrian stamp duty even if the original document or a certified copy thereof is brought into Austria.

In general, on an intra EU sale/purchase or transfer of title/interest of an aircraft no value added or other taxes will be payable in Austria.

N/A

A taxable delivery in Austria is considered as tax-exempt export delivery in case that the aircraft is transported or shipped to a third country.

The aircraft can be transported or shipped (in terms of transporting by a third party) to the third country by the seller. In case that the purchaser is the one who transports or ships the aircraft, it is required that the purchaser is a “foreigner” (no seat or residence in Austria).

However, the seller must prove such export which usually requires Austrian customs export clearance and other evidence/documents supporting the export of the aircraft from Austrian VAT territory.

N/A

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%.

N/A

There is no import (value added) tax and/or customs duties for commercial air transport business (see the exemption provision of the Austrian VAT Act as explained in Section 1.a. above).

N/A

The Austrian Stamp Duty Act enumerates specific transactions which are subject to Austrian stamp duty provided that (i) as a general rule a written deed as defined in sec. 15 of the Austrian Stamp Duty Act (which term not only comprises the agreement itself but also encompasses certain other documents relating to the agreement) is set up and (ii) a certain connection to Austria as defined in sec. 16 of the Austrian Stamp Duty Act exists.

Please note that a stamp duty in the amount of 1% of the total of all the lease payments during the term of the lease plus VAT could apply under certain circumstances according to the Austrian Stamp Duty Act. If the lease is for an indefinite period of time, the assessment basis is the total of payments plus VAT for three years.

The Austrian stamp duty may be avoided if the contract is concluded abroad and neither the original nor certified copies of the contract are brought into Austria nor officially used before any Austrian authority and/or court.

However, sales contracts are not within the scope of stamp-dutiable transactions as listed in Austrian Stamp Duty Act. Thus, the signing of e.g. aircraft purchase agreements and bills of sale which only refer to an aircraft purchase agreement will not trigger Austrian stamp duty, even if the original of the respective documents or certified copies thereof are brought into Austria

No. However, registration fees apply for the registration of an aircraft in the Aircraft Register at Austro Control Österreichische Gesellschaft für Zivilluftfahrt mbH.

No.

In general, corporate lessors resident in Austria or trading in Austria through a branch or agency (permanent establishment) will be subject to Austrian corporate tax on profits. Non-resident lessors leasing to an Austrian operator (or sub-lessor) will normally not be liable to Austrian corporation tax (or income tax) on lease rentals.

The Austrian corporate tax on profits is 25%. Double Tax Treaties may limit the tax liability.  

See Sections 1, 5 and 8 above.

See Sections 1, 5 and 8 above.

Aircraft loan repayments are in principle not subject to income/corporate/withholding tax.

N/A

The EU Emissions Trading Scheme applies to all aircraft flying within the EU. Under this Scheme aircraft operators are allocated a limited right to emit carbon and are required to purchase additional rights if their emissions exceed the rights granted while those emitters within their limits can sell any unused allowances. However, aircraft flying from and to third countries are exempted from the EU Emissions Trading Scheme for the time being.

Austrian Air Transport Levy (ATL) is a departure tax charged on the carriage, from one of the six major Austrian airports (Vienna, Salzburg, Linz, Innsbruck, Klagenfurt, Graz), of passengers on board aircraft with an authorized weight of more than 2,000 Kg (4,400 lbs.). The Air Travel Tax is levied on the carriage, from an Austrian airport, of paying passengers on passenger aircraft. It becomes due at the end of the calendar month when the flight was performed and is payable by the operator of the aircraft. The amount due is dependent upon the final destination, e.g. for short-haul flights it amounts to € 3,50 per passenger; for medium-haul flights will amount to € 7,50 per passenger; and for long-haul flights will amount to € 17,50 per passenger.

The Air Travel Tax Act also provides for exemptions, e.g. for children under two years of age who do not have their own seat on the flight; and for cargo flights which carry no passengers.

In general, Austria levies mineral oil taxes on aviation fuel. However, airlines and other commercial flight operators are exempt from such taxes.

No.