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V3278-15 26 October 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Aircraft delivery may be VAT exempt if the purchaser uses them exclusively for an international airline

A Spanish airline has requested clarification on whether the transfer of its aircraft to another company is exempt from VAT. The DGT ruled that the exemption applies even if the purchaser is not the airline itself, provided the aircraft are intended for the exclusive use of a company primarily engaged in international commercial air transport.

The question raised

VAT Exemption

The DGT's ruling

The exemption under Article 22.4 of Law 37/1992 applies to the supply of aircraft to an operator that is not an international air navigation company, provided that they are acquired for their exclusive use by a company of that nature. This criterion is based on the interpretation of the Court of Justice of the European Union and on VAT Committee working document No. 770. For the exemption to be valid, the exclusive use by the airline must be known and duly demonstrated.

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