AOC VAT calculator

In most European countries, VAT is exempted for services and fuel related to commercial aircraft handling. The definition for a 'commercial aircraft handling' is different between countries.

In some countries, such as France and The Netherlands, a 'commercial aircraft handling' is defined by the fact that the aircraft is listed on a valid Air Operator's Certicificate (http://en.wikipedia.org/wiki/Air_operator's_certificate) that must have been issued by a government body.

In other countries, such as the UK, operators can self-declare their status as being a commercial operator by means of a signed letter. The UK scenario is covered in a separate article.

In FBO One, the so-called 'AOC VAT calculator' is used if the FBO is based in a country for which the AOC-based definition applies. 

To determine if VAT may be exempted, FBO One will follow the steps below for each service in the order: -

  • First of all, the VAT settings of the debtor are checked. If the 'Charge VAT' setting of the debtor is set to 'Use AOC VAT calculator', FBO One will consider to exempt the VAT based on the steps below. If the AOC calculator is not specified for the debtor, the regular VAT rate applies as configured in the product.
  • If the product setting 'Is airside service' is unchecked, VAT will be charged as configured in the product. This will be the case for any products and services that are not related to the air-side handling, such as a crew transport to a hotel.
  • Then the AOC of the operator is checked. If an AOC number is entered and the expiration date is valid, VAT will not be charged. Normally the debtor's AOC field is checked, but in case the debtor is a broker that provides credit on behalf of a commercial operator that holds an AOC, the 'Validate AOC from operator' flag may be selected for that broker.
  • If none of the above rules apply, VAT will be charged as configured in the product.

If according to the steps above a non-zero VAT is charged, the EC reversed VAT logic is applied subsequently.

Note: In December 2020 VAT Calculator settings were created in order to allow VAT to apply if the arrival or departure flight type is "Private" thus ignoring the AOC settings. These setting are:

  •  ForceChargeVatOnAirsideServicesForFlightTypes e.g "Private for VAT". This setting will look up applied name in the flight type price category list
  •  AocVatFlightTypeCheck with settings ArrivalOnly, DepartureOnly or Both

See also

VAT in Europe

EC reversed VAT logic