VAT importation
When an aircraft is brought into the European Union or the United Kingdom for use there, it is treated as an import and value added tax at the local rate, 17–27% in the EU and 20% in the UK, becomes chargeable on its value unless a relief applies. Commercial operators on an AOC can usually import free of VAT or recover it; private owners generally cannot, which is why so many privately used jets are imported through jurisdictions with favourable procedures or structured as leases through VAT-registered companies. Getting this wrong can mean a tax bill of several million euros when customs officers ramp-check an aircraft, so tax advice should come before the purchase, not after.