The jet fuel cost per litre constitutes a significant part of the expenditure for any air operator, large or small. Of course, jet A1 aviation fuel is subject to price variations just like any other commodity available on the open market.
That said, there is another big factor that plays its part in aviation fuel prices which is, of course, taxation. Consequently, if you want to minimise the costs of flying, you will need to pay attention to the taxes that are levied on aviation fuel around Europe. Read on to find out more about jet fuel taxation and zero rated fuel.
At Flightworx, we have a wealth of experience with planning fuel uplifts to ensure you pay as little VAT and mineral oil tax, or MOT, as possible.
MOT-Free Refuelling
An Air Operator’s Certificate (AOC) will need to be presented to prove that you are the sort of commercial operator which is exempt from MOT charges. In the European Union, this primarily means airlines which carry revenue-generating passengers.
Where many people make an error is believing that it is the AOC itself that demonstrates they are MOT-exempt. This is not the case and if you are audited, then you will also need to prove that either the inbound or outbound leg of your flight plan is being conducted for commercial purposes. In fact, you are obliged to file one leg as ‘N’ if you want to be sure of avoiding MOT charges.
Flying For Consideration
In the UK, MOT tends to be referred to simply as fuel excise duty. General aviation flyers can avoid it when they are flying for consideration even if they don’t have paying passengers on board.
Essentially, flying for consideration is interpreted as when the costs of the flight are assigned to a different division within the same organisation. You do not need an AOC to take advantage of this rule.
Non-UK Destination VAT Exempt Fuel
UK tax regulations for general aviation flights will mean you can often avoid paying VAT. This is only the case so long as your flight plan ends up in an overseas territory.
If so, then you shouldn’t have to pay the VAT on the last fuel uplift prior to leaving UK airspace so long as you subsequently fly onto another country, even if it is in the EU. Landing in the UK before heading on is allowed so long as you don’t fill up again there, too.
CONTACT OUR TEAM TODAY
Flying into or out of the European Union, but unsure about the tax on aviation fuel you may incur? Feel free to contact our team here at Flightworx today for advice on flight planning and aviation fuel supply.
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