Imagine you are the flight dispatcher of a corporate flight unit in the USA, and your company has recently invested in a long-range corporate jet to enable the executives to visit many countries outside the US.

You are advised that a trip to Europe is planned and you are asked to make the necessary arrangements and to seek information on approximate fuelling costs. You confirm with the flight service company on availability of airports, and the facilities at each destination. Fine so far.

Then you look at the fuel prices advised to you by the specialist fuel card provider and you see that the fuel prices quoted are competitive. Then you see that these prices are not inclusive of taxes. So you ask about fuel taxes in Europe, and here the fun starts. You are advised there is VAT to apply.

This is different for each country, and if you are flying internally within some countries, different rules apply.

Then you hear about something called Mineral Oil Tax, and you find that it applies in some European countries and not others. Someone tells you that you can get exemption, if you have an Air Operators Certificate, or Customs Tax Exemption Certificate (the Erlaubnisschein).

Where can you find the official word on these documents and how to use them?

European business pilots who operate their aircraft with an AOC will advise you that, to obtain this exemption, you must present the document stamped by the local customs officer before fuelling commences. If fuelling has started, the exemption will not be applied.

You then discover that when Mineral Oil Tax is added to the fuel bill, the total bill is often double the original price quoted to you. The direct operating costs for the proposed European trip are now looking sick.

If our flight dispatcher asks the fuel companies, they will tell him that they have to consult their local affiliate, (who needs to be advised by an accountant and tax person) before they apply local taxes.

Now, there may be an internet site with all this information available to corporate pilots. If so, it is not well known, and I should make another plea to NBAA and EBAA, following my request two years ago at the EBAA Convention in Brussels, to produce a ‘Guidance for Aircrews’ regarding fuel taxes in Europe.

If Mineral Oil Tax is a ‘Green Tax’, why are the airlines exempt? Two or three top executives can generate more wealth and jobs than a whole plane-load of holiday makers, so why this excessive tax on so called ’private’ aircraft?

So, please NBAA and EBAA use the strength of the blue chip companies that make up your membership to lobby for a reduction of fuel taxes for business aircraft in Europe.

Lawrie Walford, Consultant