VAT reduction scheme for aircraft purchases given extension until 2010

DANISH Parliament has agreed the extension of the 0% VAT exemption on aircraft purchases until 2010.  Imports and sales can continue until 1.1.2010, allowing UK buyers to benefit from the current loophole in Danish law. Aircraft purchased before the law change can still be imported and delivered after the law change in accordance with the “old” existing rules at a 0% VAT rate. Aircraft purchased after 1.1.2010 will not be able to benefit from the old system.   Lasse Rungholm, CEO of Opmas, said, “We are very happy that our lobbying effort to postpone the law change has been so successful and we look forward to handling a lot of aircraft in the coming years like we have in the last 15. As you can imagine we will have another procedure for minimising VAT in place for the time after the law change.”