AVIATION

As a private jet broker, your role involves connecting clients with aircraft across multiple borders, currencies, and jurisdictions. However, each flight also requires navigating complex VAT regulations, which can directly impact both operational efficiency and client experience if not properly managed.

VAT treatment depends on the nature and location of the flight. Domestic flights within an EU country are generally subject to local VAT, while international flights may qualify for exemptions, provided the correct documentation and filings are made in the country of departure. In addition, when chartering or leasing an aircraft, VAT is typically applied in the country where the aircraft is placed at the client’s disposal, regardless of the operator’s location.

For example, a broker arranging a domestic flight in Italy for a foreign client, using an aircraft operated from another EU country, will likely trigger Italian VAT obligations and may require local VAT registration or fiscal representation.

With tax authorities increasingly scrutinising private aviation, accurate compliance is essential. Working with experienced VAT specialists ensures proper structuring, reporting, and application of exemptions, reducing risks while maintaining smooth operations and protecting client confidence.