Value Added Tax on air navigation services

Air navigation services made available by taxable providers in the charging zones of the EUROCONTROL Member States may be subject to Value Added Tax (VAT). EUROCONTROL invoices VAT on behalf of the taxable service providers under the conditions and in accordance with the procedures agreed with the States concerned.

Rates and conditions of application and exemptions from VAT

For more information about VAT applicable on air navigation charges billed by EUROCONTROL please refer to the latest Information Circular on Value Added Tax (route charges system) or to the latest Information Circulars on terminal or communication charges from the following CRCO address:

• Information Circulars

Place of supply of services

The “place of supply of services” for VAT purposes determines the applicable VAT rules and rates.

- For taxable air navigation service providers established outside the EU, the place of supply of services is the place where the taxable service provider is established.
- For taxable air navigation service providers established in EU States , in accordance with the new European Union VAT Directive 2006/112/EC effective from 1 January 2010, the place of supply of services is:

- For business to consumer (B2C) transactions, the place where the service provider is   established

- For business-to-business (B2B) transactions, the place where the taxable customer is established.

In accordance with the VAT Directive 2006/112/EC EUROCONTROL does not invoice VAT on behalf of “taxable air navigation service providers (ANSPs) established within the EU”, for charges incurred for flights performed from 01/01/2010, provided:
1. the customer has proven that he is a “taxable person” (business) and
2. is established
- either in an EU State which is different from that of the taxable ANSP
- or outside the EU fiscal territory.

The EU Directive and additional information are published on the site of the European Commission:

• EU site on VAT  

Reverse charge mechanism

The EU Directive introduces the “reverse charge mechanism”, whereby a taxable customer established in an EU State must declare to its local tax authority the amounts invoiced by taxable service providers established in another EU State, unless the taxable customer is exempted from VAT (see also exemption rules shown in latest information circular on our website).

VAT / Fiscal Identification number of taxable persons (businesses) and required documentation

To comply with fiscal regulatory requirements, airspace users have to establish that they are “taxable persons”. For this purpose they have to provide EUROCONTROL CRCO with their:
- EU VAT number certificate, if they are established in the EU or,
- Fiscal Identification number, if they are established in a non-EU State, by means of a Certificate of registration as taxpayer issued by the competent tax authority and showing his taxpayer reference number. If the applicant does not have a taxpayer reference number, the competent authority shall state the reason for this.
Documentation may be sent by email: r3.crco@eurocontrol.int, by fax: +32.2.729.90.93 or by normal mail to EUROCONTROL - CRCO, Rue de la Fusée, 96, 1130 Brussels, BELGIUM.
In the absence of such a proof of taxable status, any airspace user is deemed to be a “non-taxable person” and VAT will be invoiced in full - wherever this non-taxable airspace user is located - until he has established that he is a taxable person.

In addition, users are requested to provide EUROCONTROL CRCO with some or all the duly certified documents listed below:

- Extract from the National Company Registration Office establishing that it is a registered company and/or
- Duly certified copy of the Air Operator Certificate (AOC), including annexes, issued by the Civil Aviation Administration and confirming the authorisation to carry out specified commercial air transport operations and
- Other documentation considered as relevant to adequately establish that the activity is operating chiefly on international routes if applicable.
In addition, users are requested to provide EUROCONTROL CRCO with some or all the duly certified documents listed below:

New billing documents titled "Bill Breakdown" and "Credit Note Breakdown"

The new documents are issued for flights performed from 1st January 2010. They show the amounts billed or credited by service provider and their VAT taxable nature – i.e.:

- Total value of the services provided per State/taxable air navigation service provider and
- Name, address and VAT number of each taxable air navigation service provider and
- VAT codes explaining how the charges are treated for VAT purposes (recto side of the document) and
- Explanation of the VAT codes (verso side of the document)

(The same codes are indicated on the VAT annexes in respect of Terminal Navigation and Communications charges bills.)
the VAT amounts of which are included in the total amount of the Bill or Credit Note for route charges.
Whenever VAT is invoiced or credited on behalf of a taxable air navigation service provider, EUROCONTROL also issues, as hitherto practiced, the documents named:
- “VAT Invoice -Annex to Bill” and
- “VAT Credit Note – Annex to Credit Note”,

VAT categories ‘RX’ and ‘NE’

To qualify navigation charges billed as eligible to the Reverse Charge Mechanism and exempt (RX) from VAT, Ministries of Transport of all concerned EU States have to notify EUROCONTROL with the identity of their national airlines operating for reward, chiefly on international routes. Airspace users without such notification are not deemed to be exempted from VAT for the concerned States.

If an airline established within the EU operates for reward and deems that it chiefly operates on international routes it is invited to deal directly with its local fiscal administration to agree its exemption status, as might be feasible and to inform EUROCONTROL on any positive outcome together with documentary proof.

Taxable airspace users located outside the EU or registered in the areas mentioned in the Article 6 of the European Union VAT Directive 2006/112/EC, i.e. territories of the EU Member states but outside the scope of the validity of the Directive, e.g. Jersey, Guernsey , the Canary Islands, need to provide EUROCONTROL with a proof, e.g. the certificate of incorporation or registration in such territories, that they are a taxable person and not a private one. Amounts of air navigation charges for such airspace users are not charged with VAT and are coded (NE) by EUROCONTROL.

Specific case in Germany

In Germany, two entities provide air navigation services directly to airspace users, i.e. the main ANSP – DFS which is a taxable person (the services provided are subject to VAT) and the Deutsche Wetterdienst (DWD) which is a public non-taxable entity (the services provided are not subject to VAT). This is duly reflected by two lines on the „Bill Breakdown”, one for the non-taxable part of the services coded under 'NA' and one taxable part coded under 'VT', 'EX', 'RC' or 'RX' dependent upon the taxable status of the airspace user, the State where it is established and to what extent it is exempted ( see the Breakdown attached to the EUROCONTROL Bill or Credit Note).

VAT identification of EUROCONTROL

EUROCONTROL is not a taxable person. The services provided by EUROCONTROL CRCO are provided on behalf of States and ANSPs. The VAT number of each taxable ANSP can be found on the “VAT Invoice -Annex to Bill” just below the address of the service provider address in the box on the centre of the page and on the reverse side of each “Bill Breakdown” / “Credit Note Breakdown” documents. 

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