It could mean several things:
The plane is Reims built and prob99 never left Europe more than a few days.
It is operated by a company though, and the cell number is the one of the company operating it.
But I don’t get how you can buy a plane through a company to avoid VAT and register it to your name.
A proof of sale is required to register the plane in France.
how you can buy a plane through a company to avoid VAT and register it to your name
What you can do is a process over many years
So, over years, the aircraft value in the books reduces, and eventually the aircraft can end up owned privately by one of the directors, who paid a reduced VAT amount. If there is some damage history, that helps…
But there is no way to do this in one go, legally.
Obviously if Joe Bloggs was some unrelated person, the company would not sell it at book value. It would sell it at market value, which may be lower than book value (then the company books a loss) or it may be higher, especially right now (then the company books a profit and has to pay corporation tax on it).
And the process is “provocative” to the taxman, for obvious reasons; much more so if the company would otherwise be making taxable profits but the capital allowances on the plane reduce or nullify those profits and the plane is used privately… They just hate people doing that.
Post Brexit I don’t know if an EU VAT PAID aircraft is any use for a private (not VAT registered) UK buyer? Anyone know?
This came up some pages ago. It seems that you have to pay the UK import VAT, regardless of whether it was already paid in the EU.
Puts a damper on Brits buying planes from the mainland…
If anyone knows different, they aren’t saying
Peter wrote:
It seems that you have to pay the UK import VAT, regardless of whether it was already paid in the EU.
… for the planes sold by the private sellers – you are buying it from a company, you pay VAT once, when you import it, AFAIK.
Sorry; I don’t understand.
Peter wrote:
Sorry; I don’t understand.
Peter, what I meant was that if you as a private individual buy a plane from an organisation in the UK or EU, you would always have to VAT.
Peter wrote:
This came up some pages ago. It seems that you have to pay the UK import VAT, regardless of whether it was already paid in the EU.
AIUI, any product a UK citizen buys from Europe post Brexit will attract import duty and that in turn will attract VAT.
Stickandrudderman wrote:
AIUI, any product a UK citizen buys from Europe post Brexit will attract import duty and that in turn will attract VAT.
This means that for a UK buyer looking at mainland europe the VAT status is meaningless, it’s the same as buying from the USA. budget 20% VAT on import.
The only savings for UK private buyers are with UK VAT paid aircraft.
As an aside I can never understand how so many small aircraft are for sale “plus VAT”. This implies they are owned by a VAT registered person, and getting the tax authorities to accept that concept is not easy, at least in the UK.