There is also “duty free shopping” 
Not sure if it means VAT-free shopping, or if the products offered have had the country’s import duty discounted (which in practice matters mostly for stuff made in china, since intra-EU there are no import duties anyway).
It is a very good point. If “duty free shopping” is actually just “VAT free” then this is the concession which would enable an airport to discount the VAT on a flight going abroad. I am sure they will need local Customs permission, however.
zuutroy wrote:
I know that airport…let’s not tell them they should possibly be charging more!
I won’t tell if you don’t!
Peter wrote:
I know for a fact that in my business we have to charge VAT to a customer who is collecting something from us even if he tells us he is heading straight for Gatwick and off to somewhere far away.
But you haven’t done that when you ship outside the EU, do you? So after New Year you shouldn’t charge VAT when shipping outside the UK. (Unless by some miracle an agreement is in place by then.)
So it isn’t unreasonable that fuel uplifted to aircraft leaving the VAT area is VAT free. (“unreasonable” of course does not mean it actually happens.)
It hangs on how much evidence you have that the goods are really leaving the country.
In some scenarios of foreign shipments we have to obtain proof (from the shipping company) that the shipment took place. I can’t recall the details; it probably applies where the stuff was collected in an unmarked white van, to be driven to Staines in Middlesex where most of the Heathrow cargo firms are With shipments by e.g. DHL it is all a part of the process; the proof of shipping is in the tracking info.
If you are in a duty free shop at an airport, you cannot not leave the country. Well, except in a coffin, after you got shot with an MP5 while escaping the secure area But you could refuel at some airport and having told them you are leaving the country, land domestically.
Indeed, on 1st Jan 2021 we go to Settings and change T4 to T0
Bluebeard wrote:
One might note that duty drawback is in general a larger amount than the VAT, £0.377 per litre versus say 20% of £1.50 or whatever.
The duty drawback should also reduce VAT, too, since VAT is charged on the duty as well not just on the raw pre-duty price?
VAT is usually (always?) charged on top of everything else, so yes, removing duty or excise tax before applying VAT does help.
Peter wrote:
I know for a fact that in my business we have to charge VAT to a customer who is collecting something from us even if he tells us he is heading straight for Gatwick and off to somewhere far away.
With the current VAT directive, if the customer:
then you “can” (should, theoretically) exempt the sale from your country’s VAT; in the second case, you must put the sale in your intra-EU reporting, since the customer’s country VAT will be applicable (reverse charge system), you have to rat him out to his tax office for that.
However, your problem is one of proof. In a VAT tax audit, you have to prove the applicability of the exemptions used. So if the customer lied to you, or if he was 100% honest but you don’t have positive proof that he exported the goods, you are liable for the VAT amount. So “obviously” everybody just charges local VAT in such scenarios.
There are changes coming that would change some of the above.
Peter wrote:
Currently, across Europe, you can get duty free fuel on production of an AOC.
The Member states are allowed not to apply this duty exemption to avgas (they must apply it to kerosene / jet fuel). I believe (not sure right now) that Belgium (and Luxembourg follows through the rules of their customs union predating the EEC) have chosen not to apply the exemption to avgas. Possibly what I’m writing is not for AOC, but for non-AOC professional work (e.g. ATO/DTO/school).
lionel wrote:
However, your problem is one of proof. In a VAT tax audit, you have to prove the applicability of the exemptions used. So if the customer lied to you, or if he was 100% honest but you don’t have positive proof that he exported the goods, you are liable for the VAT amount. So “obviously” everybody just charges local VAT in such scenarios.
In the second scenario, almost every seller I’ve encountered would not charge VAT. It is very simple to check that a VAT number is valid and the seller would know if (s)he ships the goods outside of his country!
Airborne_Again wrote:
In the second scenario, almost every seller I’ve encountered would not charge VAT. It is very simple to check that a VAT number is valid and the seller would know if (s)he ships the goods outside of his country!
The second scenario was one where the customer him/herself picks up the good at your premises and tells you he is transporting it out of the country. Not when the seller ships himself. If he shows up with a truck with his logo on it and licence plates of his own country, that’s plausible/believable. I’d say write down the licence plate, make the buyer sign a manifest with origin and destination, maybe take pictures of the loaded truck, and don’t charge your local VAT. If the buyer organises a pickup by a professional international transport company (DPD, Fedex, DHL, whatever), keep a copy of the transport company’s manifest with origin and destination, that’s a good proof, don’t charge VAT. If the buyer shows up in a local cab/taxi, telling you he is on his way to Gatwick/Heathrow/St Pancras (railway station) and will take it into his passenger luggage… well, that’s rather flimsy proof. I think in the latter case most sellers would charge local VAT.
