As flight crewmembers, we should do the following when operating in a foreign country to ensure that VAT and Excise Taxes are billed correctly.

1. Speak to your handler and service provider so you know what to expect for VAT and Excise Taxes
2. Ensure that the fueler has a copy of the fuel release- Do not attempt to give the fueler a credit card because it may invalidate VAT exemptions which have been arranged by the handler
3. Carry printed copies of the Air Carrier Certificate which may be required to be furnished to the fueler or customs department
4. Do not sign a fuel ticket until you have determined that the correct VAT or Excise taxes have been assessed. It is difficult to go back later and the taxes removed.
5. Contact a reputable International Fuel provider such as Universal Aviation for any questions.

Excise taxes are simply taxes imposed by the government on goods or services. These taxes can have a significant impact on your operations unless you are knowledgeable and have planned accordingly. As flight crewmembers the one tax that affects us the most are taxes imposed on fuel purchases. An important difference between Excise taxes and VAT taxes are that Excise taxes are flat fees, whereas VAT taxes are based on a percentage. Neither tax is mutually exclusive. In fact, you may be charged an Excise tax which adds $3 per gallon and then you may be charged a VAT tax which is a percentage based on the price per gallon plus the Excise tax. In short, the taxes may more than double the per gallon price of fuel, which makes fuel tankering decisions even more critical.

Depending on the country that you are in the excise taxes may bear different names. For instance, in France excise taxes are called TIPP, or Taxe Interieure sur les Produits Petroliers-National Tax on Petroleum Products, In Germany they are called MOT, or mineral oil tax, etc.

If you operate under FAA Part 135 it is possible to avoid excise taxes in certain countries with restrictions. In France you may be able to avoid excise taxes if you have an Air Carrier Certificate and 80% of the flights are conducted for higher and the operator conducts trips which are international in nature. In Austria an operator may be exempt from excise if they have an Air Carrier Certificate and operate commercially more than 50% of the time. Some countries like Switzerland have further restrictions which require the aircraft to be fueled within 3 hours of departure and require that the flight be connected with a commercial flight operation.  The government entity may request verification of commercial operations as proof and it is not uncommon at the time of fueling to have the fueler request the Air Carrier Certificate of the operator. As of this writing Belgium, the United Kingdom and Ireland do not impose excise on fuel.