→ Is VAT applicable?
Supply of services between businesses in the intra-community is in principle taxed at the customer’s place of establishment (art. 44 VAT Directive) and, when no exemption applies, VAT is applicable for all domestic flights.
Please refer to the following tax rates for the main countries we operate domestic flights:
| Country | VAT |
|---|
| Austria | 13% |
| Italy | 10% |
| United Kingdom | 20% |
| The Netherlands | 21% |
| Spain | 10% |
| Germany | 19% |
| France | 10% |
Other countries may apply different VAT rates.
However, in order to ensure that VAT receipts accrue to the Member State of consumption, some exceptions have been introduced.
The general principle in respect of the right to deduct input VAT and VAT refunds is that a taxable entity is allowed to deduct the VAT paid on deliveries (purchases) insofar as the goods or services are used for its business activities.
This “deduction”, also known as “reverse charge”, is by means of a refund of VAT from the Member State in which the VAT was paid.
VAT exemption or zero-rated VAT is applied for:
- international passenger transport services, which includes intra-EU flights;
- domestic flights, when the customer maintains a registered valid VAT ID for the country where the domestic flight is conducted (i.e. GlobeAir sells a flight from Paris to Nice to a company, with a registered and valid French VAT ID, this domestic flight is fully VAT exempted as reverse charge).
Some Member States apply limitations to this right to deduct input VAT.
