UK VAT 2 - Fuel Reseller


VAT flow chart

VAT Calculator settings

Set a domestic station group name

  • DomesticStationGroupName=UK Domestic (default). This setting is used to determine if the Customer’s country for VAT purposes is UK. Also we check the flight destination for in-flight catering and fuel using this group

For Fuel tickets the destination is ignored, with the VAT declaration signed (Yes/No) determining if VAT is charged.

Set the fuel liters limit for Standard vs Reduced rate VAT

  • LitresOfFuelAboveWhichHighVATApplies=2300 (default). Fuel quantity below this number is charged with Reduced VAT rate and anything above this standard rate will apply.

Is Aircraft Handling Service

  • Is Airside Service’ is renamed to 'Is Aircraft Handling Service' for products.

VAT number caption

  • The ‘VAT number caption' custom value must be set to the ‘Contact’ table. It allows for a drop down for contact to show either an ‘Evidence of business’ or a 'Customer VAT no.’ for invoice and reporting purposes.

Adding the ‘VAT number caption’ to any other table will prevent the adding or editing of organizations.

  • ‘Customer VAT no' will show below Vat number caption, even if ‘Evidence of business’ is selected, a ‘Default custom value’ must be set for this to work. Saving changes and reopening the page will refresh the field to display correctly.

  • The following expression should be added to the Receipt/Invoice RDL template in replacement of ‘Customer VAT No.’: =IIF(IsNothing(First(Fields!VatNumberCaption.Value, "ReceiptLine")), "Customer VAT No.",First(Fields!VatNumberCaption.Value, "ReceiptLine"))

Administration settings

Set EC reversed codes and Airside/Aircraft Handling Service exemption codes

  • For EC reversed use the EURC code

  • For Airside/Aircraft Handling Services exemption (AOC holders) and for customers outside EU use the Outside Scope vat code

Vat codes settings

Set a Zero Rated VAT code

  • By default there can be multiple VAT codes with 0%. We need to identify which code will be used when the system needs to apply the Zero-rated VAT (e.g.: for a customer with a qualifying aircraft, or for a customer buying fuel and signing that the fuel will not be resold)

    • Add custom value for the var code: Is Zero Rated VAT code for UK VAT calculator | Yes

Set a reduced VAT rate for Fuel

  • The fuel product is identified by the Stock keeping Unit (JET A1 or AVGAS) and by the fuel mutation type (Uplift, Defuel)

  • Any child products should be set to take VAT code from parent.

  • Assign Standard rate VAT

  • Normally Fuel is an Aircraft Handling Service, but for AOC holders or EU customers, fuel is not VAT exempt or reversed, it must be marked as not Is Aircraft Handling Service

  • In the VAT codes table, assign ReducedRateForUKVAT | Yes custom value to the VAT code to be used when fuel volume is below 2300ltr

Products/Fuel settings

Set the In-flight Catering product

  • by default assign Standard VAT

  • flag the product as not an Aircraft Handling Service. (for AOC holders must not be exempt, also for EU customers must not be Vat reversed)

  • Assign IsCateringForUKVAT | Yes custom value

End user vs Reseller fuel customer

  • If the Operator and Debtor are not the same for the Order, then VAT is applied unless the Debtor is marked as a fuel agent.

  • End user fuel customer that declares the final flight destination is international and he will not resell this fuel uplift qualifies for Zero rated VAT.

    • The fuel ticket entered in FBO One has the option to select the Flight destination and FBO One checks automatically if it is external to UK, for information purposes only.

    • The fuel ticket destination box is configurable via the Stock Duty Tax setup. If the fuel ticket has no specific destination specified, the system will take the handling’s outbound flight leg destination.

Customer settings

Is Fuel Agent

  • If the debtor is marked with the ‘IsFuelAgent | Yes’ custom value then VAT will not be applied to the fuel ticket:

  • The Operator’s address will be displayed on the invoice along with C/O with fuel agent name used to show that the order is in the care of the fuel debtor:

Evidence of Business

  • Customer must have a VAT number or evidence of business

  • Customer must have a Country for VAT purposes

  • VAT remarks can be used to store extra information.

Evidence of Business plus AOC

  • Has AOC for airside VAT exemption purposes flag set to 'Yes'

  • AOC number

  • AOC expiration date in the future

  • Operator/debtor is then classed as an Airline.

Set a State Institution customer

  • In the contact page, assign the custom value IsStateInstitutionForUKVAT | Yes

  • Evidence of business/VAT number must be blank

  • Any aircraft 8000KG MTOW or above will be classed as a qualifying aircraft and be Zero rate VAT

  • Any aircraft under 8000KG MTOW will be non-qualifying and be Standard rate VAT

Set a qualifying aircraft (for airlines) to a registration

  • In the registration’s page, assign the custom value Is Qualifying Aircraft | Yes

  • For Zero rate VAT to apply, the default operator or debtor must be present in an order, either can be an Airline.