Taxes

Business aviation and taxes

It is widely misunderstood that aviation, and Business aviation in particular, does not pay taxes on its operations. In fact, the fiscal regime for Business aviation in Europe is highly fragmented, with many different taxes being applied differently in various European Member States.

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Business aviation taxation

EBAA works with policymakers and the European Business aviation sector harmonise rule-making in this area and helps members comply with differing taxation rules.

Several EU-wide taxes affect aviation and in particular Business aviation. In addition, certain European Member States impose taxes at the national level. Italy’s Aerotaxi Passengers tax and Energy Taxation Directive are two examples.

Fuel Tax

In accordance with Article 14 of the Energy Taxation Directive, Member States exempt from excise duties aviation fuel supplied to aircraft, provided that the aircraft are used for “[purposes other] than private pleasure flying”.

However, Business aviation companies in France, Germany and Austria are subject to incomplete and varying applications of the European legislation.  The lack of harmonisation hampers and reduces the competitiveness of the affected operators. EBAA calls for a harmonised implementation of the Energy Taxation Directive, with a common understanding and interpretation of these rules

EBAA commissioned a legal analysis explaining the specific challenges faced by Business aviation operators with respect to the varying implementation and interpretation of the Energy Taxation Directive.  This legal analysis serves as a basis for the ongoing discussions with the European Commission and is available for download below.

Italian Aerotaxi Passengers tax

In December 2012, the Italian Government successfully voted to implement a tax on private and Business aviation to be applied to flights originating from, or terminating at, Italian airports. The Italian Luxury Tax is known as “Salva Italia”, or “Aero Taxi Tax”.

Since it’s implementation, the execution of this tax remained unclear to many foreign operators and proved to create difficult and surprising situations for operators operating in – and out – of Italy.

EBAA prepared a note describing the Aerotaxi Passengers Tax to prepare and help operators better understand how the tax is levied. This note is available for download below.

Contact the Policy
and Regulatory team

Do you want to know more about this issue?  Get in touch:

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Vanessa Rullier-Francaud Senior Manager, Air Traffic Management and Special Projects

Related resources

Publications

Downloads

Related reading

A Roadmap for European Business aviation 6.68 MB
Download: A Roadmap for European Business aviation
Fuel Tax in Business aviation - A legal impact analysis (January 2020) 4.21 MB
Download: Fuel Tax in Business aviation - A legal impact analysis (January 2020)
EBAA Note on Aerotaxi Passengers Tax 135.50 KB
Download: EBAA Note on Aerotaxi Passengers Tax