Aircraft
04/03/1983
Query
Whether the zero rate could be applied to the lease of an aircraft to an intermediary company which was for subsequent onward leasing to a qualifying airline.
Decision
Agreed to "look through"the intermediary, provided it is clear at the outset that the ultimate lessee is a qualifying airline. It was decided to regard the first lease as also qualifying for the zero rate in accordance with paragraph (v) (b) Second Schedule. This treatment may be applied provided it is clear at the outset that the ultimate lessee is a qualfying airline.
Value Added Tax
Section 11(1)(b), Value Added Tax Act, 1972
Origin: Indirect Taxes Policy and Legislation
File ref:A/403
04/04/1991
Query
A Foreign lessor leases a jet to an Irish airline for onward leasing to a Goverment Department. Whether the foreign lessor should register for VAT, and whether the Irish airline should be allowed to import the aircraft at the zero rate even though it was not for use in its transport business.
Decision
The Foreign lessor was not required to register for VAT and the Irish Airline was allowed to import the aircraft at the zero rate as if for use in its transport business. The airline was not allowed to claim input credit on the lease.
Value Added Tax
Section 11(1)(b), Value Added Tax Act, 1972
Origin: Indirect Taxes Policy and Legislation
File ref:A/403 (A)
13/04/1995
Query
Whether a French Airline which sold an aircraft which was on the ground in Dublin at the time of sale was required to register for VAT. The aircraft was subsequently exported from Ireland and leased to an Icelandic airline which operated for reward chiefly on International routes.
Decision
As a concession, the French airline was not required to register for VAT.
Value Added Tax
Section 8 (1), Value Added Tax Act, 1972
Origin: Indirect Taxes Policy and Legislation
File ref:A/403