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”. Now, almost three years later, we find that this area remains unclear to many foreign operators and newcomers in this market segment.
Industry stakeholders voiced their concerns about the implications of this tax in 2012, fearing it would have a detrimental impact on general aviation in the country. Through a series of questions, I will explain in a little more detail how exactly it impacts the industry today and what operators can expect.
How much is the Aero Taxi Passenger Tax exactly?
The tax is due by each passenger and paid to the operator as follows:
- 10 EUR for each passenger, for each flight to, from, or within the Italian territory where the distance between the departure and arrival point is less than 100km (targeted primarily at helicopter transportation services)
- 100 EUR for each passenger, for each flight to, from, or within the Italian territory where the distance between the departure and arrival point is more than 100 km, but less than 1500 km
- 200 EUR for each passenger, for each flight to, from, or within the Italian territory where the distance between the departure and arrival point is greater than 1,500 km
For calculation purposes, flight distance between the point of departure and point of arrival (regardless of any technical stop-over) is calculated by reference to the great circle track plus 95 km.
The tax is levied on all “Aero Taxi flights”, where the aircraft is chartered for passenger use in its entire capacity.
Who should pay the Tax?
The tax is due by each passenger to the operator, who, as paymaster, is then obliged to pay it on to the tax authorities once collected. The Tax amount levied is not part of the operator services, and therefore not subject to additional VAT.
The operator acts only as a collecting agent and does not carry joint liability with the passengers for the payment of the Tax.
When should the Tax be paid?
The timeframe during which the payment of the Aero Taxi Tax is required to be made by the operator depends on the aircraft’s country of registration:
- For EU registered aircraft and aircraft registered within the European Economic Area (EU Member States plus Iceland, Liechtenstein and Norway) the tax should be paid by the end of each month, following the execution of passenger flights carried out in the previous month
- For aircraft registered in other countries, the tax should be paid prior to departure from the Italian territory or on the day of arrival to the Italian territory.
The tax is incurred from April 29th, 2012 (which is the date when law 44/2012 came into force).
How should this Tax be paid?
The tax is paid using a so-called “F24 form”, typically used in Italy for tax payment purposes, which requires an Italian tax code.
Non-Italian operators who do not have an Italian tax code can pay the tax via Euro bank transfers.
In any case, if you’re already working with UAS International Trip Support you know we will ensure the above is made even easier for you.