AvGas Prices

C210_Flyer wrote:

But that has nothing to do with “what is important here and that is there is a new charging scheme not associated with performing an IFR approach but rather one associated with a filed IFR flight plan.”

Yes, I got the point when you bold and underlined it earlier. It seems you are right. It seems they have decided that is easier than charging per approach.

In Hungary almost everything priced has VAT included in that price. Correct me if Im wrong the same holds true for Germany ie. Cloths Gasoline (auto) and Restaurant meals.

The difference in aviation is that there are many operators who are able to not pay the VAT if they operate commercially or under an AOC. It is why most wholesale prices in every industry are ex-VAT.

This is off topic, but airports have to charge for practice approaches otherwise they will get inundated with non-landing (and thus no revenue generating) flights from all schools within say 50-100nm.

This happened to Schwäbisch Hall (EDTY). For many years they did not charge for practice instrument approaches. Initially only the two flying schools from Stuttgart would fly there and it all stayed within normal limits. But over the years it became a free training facility for almost every school in southern Germany to the point where the based business jets could not get into and out of their own field any more. They started charging an approach fee last year and traffic came back down to normal levels.

Ok Love to hear their explanation. Thanks Alexis.

JasonC wrote:

The difference in aviation is that there are many operators who are able to not pay the VAT if they operate commercially or under an AOC. It is why most wholesale prices in every industry are ex-VAT.

Ok Jason That makes sense.

what_next wrote:

But over the years it became a free training facility for almost every school in southern Germany to the point where the based business jets could not get into and out of their own field any more. They started charging an approach fee last year and traffic came back down to normal levels.

That also makes sense.

I just did some research and found that if you are commercial you get the Avgas prices for 1/2 the cost. Yes you need I think its called an AOC. Technically you also can get it if you are flying Internationally outside of the EU.

RR has some kind of arrangement with BP and will have to check into whether we can get back the taxes if flying Internationally.

You need to show an AOC to get duty free (and possibly VAT-free) avgas.

To get VAT back on avgas, you need to be a VAT registered individual or corporate body and (in general; tax laws vary around Europe) the trip has to be for a business.

I believe Belgrade is achieving its amazing low price by selling duty- and VAT-free avgas. Lots of places used to do that, until about 10 years ago. Back then I paid about 50p a litre on Losinj LDLO

Ok Then just how many people do you think have set up “companies” for the advantage of duty or govt not screwing you shelters? A percentage would be ok from your experience.

I mean the difference between a commercial price and one with the govt helping with a 100% mark up is pretty damn significant for the cost of flying.

Do you think they are doing that to keep GA in check here in Europe? Perhaps if they didnt put their whole foot on the scales more people would think its not just a rich mans toy and would start to… maybe fly airplanes. This last paragraph was tongue in cheek.

Well, going around with a photoshopped AOC is going to get you into a whole load of trouble when you get caught.

The sort-of legit way to do this is to set up a flying school and put one of the planes on a charter AOC. Then you can use that AOC to get duty free avgas – regardless of whether that AOC is being operated.

The VAT reclaim is a separate thing. Many previous discussions here. In the UK, HMRC want to see a business plan before they will allow any big reclaims. Then there are further complications down the road.

Ok Then just how many people do you think have set up “companies” for the advantage of duty or govt not screwing you shelters?

Setting up a company doesn’t do anything in itself. You need an AOC first. The costs of getting and maintaining that probably out weigh any potential saving.

Getting VAT bank or fuel VAT free on the basis of a VAT number, that you aren’t using for an economic activity, but instead using for personal use, is tax evasion at minimum. If you’ve no legitimate business in the company, then it’s probably tax fraud.

People go to jail for tax fraud.

It’s not worth the potential saving.

As for getting caught, your aircraft reg is probably recorded with each refueling, making tracing you a trivial task.

It’s not something I’d touch with a barge pole, that my worst enemy was holding for me!