This appears possible for residents in some European tax regimes.
I looked into this way back here (UK) and was told there is nothing that’s possible – given I was not going to be an airline pilot.
The PPL was for sure never possible but a CPL/IR might have been. But even getting the IR would have been helpful.
What are the options?
I believe e.g. in Poland, if you train for a CPL, IOW it is vocational training, it is taxed at 0% VAT. VAT over here is 23% at the moment, so nothing to sneeze at. You are right that a PPL does NOT qualify, unless you do the whole 0-to-hero thing, which I guess would include all the required hour building.
Another possible approach is getting training at a “not for profit” club which can take “donations” and to “donate” the cost of the training – if you make enough to write off such a donation and if the club plays along. That would, obviously, include “just a PPL”.
tmo wrote:
Another possible approach is getting training at a “not for profit” club which can take “donations” and to “donate” the cost of the training – if you make enough to write off such a donation and if the club plays along. That would, obviously, include “just a PPL”.
I have seen some clubs quoting prices VAT free (for their members). But tax laws tend to be complex and I don’t run anything like this so I don’t really know how it’s done. Some countries do support sporting activities and this can include aviation.
The rules in Ireland (and I believe the UK) are that the expenditure must be wholly and exclusively for the purpose of the trade. (There is some flexibility from this rule which might allow an expenditure to be apportioned in certain cases.)
While it might not be common, I can imagine circumstances where the flight training (for a PPL) could be wholly and exclusively for the purpose of the trade.
Imagine you live in a remote area with poor transport connections. Eg The Hebridies. Your business involves making regular (a few a week) trips to the mainland to visit customers, and carry out work on their premises. Your business could well be hampered by the twice weekly commerical flight schedule, or the long ferry times (I believe they do a circular trip to various islands), and really holding back you getting new clients. Even once on the mainland, journey times in Scotland can be quite long, which limits the number of calls you could do, and your reaction time to an urgent request from a client.
The ability to travel at a moments notice is likely to signifiantly improve your competivness and reduce the disadvantage that you suffer from compeditors on the mainland.
In that case, training for a PPL, and the running costs of the aircraft could in my opinion, be seen as wholly and exclusively for the purpose of the business. Of course if the aircraft was then used mainly for pleasure flights, and business use was incidental, that wouldn’t stand up!
In Czech Republic, according to my accountant, one can reclaim VAT on professional development training that is economically justified for your business, but not on training for a totally new occupation (such as PPL). Thus, if you can provide a plausible explanation how your CPL training would help increase your company’s revenue, you can reclaim VAT on that. It does not mean the fiscal authorities will necessarily ask you for such an explanation, but they may if they suspect any violations.
In Austria, you can deduct commercial pilot training from your income taxes. AFAIK, this is not possible for a PPL or for MEP/IR or any other ratings based „only" on a PPL.
Blueline,
Is that deduction allowed even if the training is not connected with your income source?
Colm
dublinpilot wrote:
Is that deduction allowed even if the training is not connected with your income source?
I know, you asked blueline, but I can answer for Germany:
Case one: You already have learned a profession and get an income from that. You decide to get youself a commercial pilot’s license as an alternative profession. The cost is fully deductable from your present income! Even if you generate negative income by spending more for your flying training than you earn, you can deduct these losses in the following year(s).
Case two: You train for a commercial license as your first profession. If you have an income during your training period you can deduct the training expenses from that income, otherwise carry them forward to following years.
If you do a modular course where the PPL is a milestone towards the CPL/ATPL, the cost of the PPL can be deducted. If you do your PPL separately and later decide to continue towards a commercial license, it is difficult (or next to impossible) to deduct your PPL expenses.
Case three: You are self-employed or run your own business and want to get a PPL ( / IR) for your business transportation. Very difficult, but with a good tax advisor and good negotiating skills with your local tax office something may be possible. IIRC, the (now not often to be seen) forum member “Achimh” has done some inquiries in that direction. But I can’t remember the outcome.
Another possible approach is getting training at a “not for profit” club which can take “donations” and to “donate” the cost of the training – if you make enough to write off such a donation and if the club plays along. That would, obviously, include “just a PPL”.
That is an amazing wheeze 
I wonder if it works in the USA, where “donations” are a big thing.
OTOH the school needs to be a registered charity (whatever that means in each country). In the UK it would be very difficult to set up a school as a charity. Well, there are many many charities which are for all practical purposes vehicles for running their own executives and whose charitable activities are basically ineffective (they fly to Greece to hold up a child for the camera, on a beach in Lesbos, and go back home) but legally they are charities.
I wonder if this helps to explain the Italian aeroclub problem where the charitable status of the club prevents them selling avgas to visitors?
That is an amazing wheeze
But it will be so country dependent.
In Ireland to get a deduction for a charitable donation, the charity not only needs to be registered as a chartity, it needs a special registration to allow tax deductions.
Even then, the tax relief goes to the charity, not the tax payer! So your donation gets bigger, rather than you getting a refund.
Up to maybe 10 years ago, there was no tax deduction here for charitable donations in any shape or form.
So this will be entirely country dependent (as is most things tax!)
