Is VAT applicable when booking a private jet charter flight?

Supply of services between businesses in the intra-community is, in principle, taxed at the customer's place of establishment (art. 44 VAT Directive). 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, some exceptions have been introduced to ensure that VAT receipts accrue to the Member State of consumption.

The general principle regarding the right to deduct input VAT and VAT refunds is that a taxable entity can deduct the VAT paid on deliveries (purchases) insofar as the goods or services are used for 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 include 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 entirely VAT exempted as reverse charge).

Some Member States apply limitations to this right to deduct input VAT.