Tax and Customs Administration tackles international VAT constructions private planes

Under the direction of the Dutch Tax and Customs Administration, the tax authorities of Denmark, Germany, France and the United Kingdom have proceeded against VAT constructions for private planes, including private jets.

The tax authorities involved have imposed more than EUR 15 million of additional tax assessments for planes and helicopters purchased by private persons via Denmark. State Secretary Weekers is pleased with the fight against these constructions: 'These kinds of VAT constructions have to be tackled fiercely. Fraud is not tolerated.'

Until 1 January 2010, there was a possibility in Danish law to supply private planes for a VAT rate of 0 %. An investigation of the Dutch and Danish tax authorities showed that the supply mainly was effected via Denmark on paper only, whereas the real supply to the purchaser took place via a local dealer outside Denmark. It concerned planes ranging from simple one-person propeller aircrafts to private jets.

The total value of the investigated transactions amounts to EUR 86 million. The Netherlands has imposed additional tax assessments for a sum of almost EUR 2 million, Germany for a sum of EUR 5 million, the United Kingdom and France for sums of almost EUR 4 million each and Denmark for a sum of almost EUR 800,000. The information obtained from the investigation will be shared with the other EU Member States in order to recover the missed-out taxes wherever possible.