Tax incentives for energy products for aviation
Exemption from tax
Section 27(2) nos 1 to 3 and (3) Energy Tax Act
In aircraft used for commercial aviation, that is
- the commercial carriage of passengers or goods by air carriers or in sports aircraft;
- for the professional provision of services
- and for research purposes;
the use of certain energy products (aviation fuel and kerosene) is exempt from energy tax.
Tax-free use of energy products is also possible:
- in aircraft used in air rescue services (for air rescue purposes)
- By public authorities (for official purposes)
For energy products that are used:
- for aircraft maintenance;
- in the development and manufacture of aircraft and aircraft engines and motors;
an exemption is also possible. However, this is subject to the condition that the company wishing to use these energy products tax-free has been approved by the Luftfahrtbundesamt [Federal Aviation Office], the European Aviation Safety Agency as the competent authority or the Bundesamt für Wehrtechnik und Beschaffung [Federal Office for Defence Technology and Procurement].
However, authorisation for the tax-free use of energy products in commercial air transport aircraft is only granted if the energy products are used exclusively for tax-free purposes with-in the meaning of Section 27 of the Energy Tax Act (Energiesteuergesetz - EnergieStG).
Certain ancillary flights (training flights, test flights, demonstration and sales flights, and flights to and from the maintenance facilities)
- operated by undertakings which carry persons or goods on a commercial basis but do not hold an air carrier licence; or
- operated by undertakings providing air transport services on a commercial basis;
are not exempt and the energy products used for these flights are taxable.
An operation carried out with aircraft or watercraft for remuneration is deemed to be commercial if it is carried out with the intention of making a profit and the undertaking acts at their own risk and responsibility (section 60(5) of the Energy Tax Ordinance (Energiesteuerverordnung - EnergieStV)).
Relevant forms (in German)
1160 - Application for a permit for tax-free use of energy products for aviation
1161 - Single permit for aircraft with regular location outside the tax jurisdiction
Tax relief
Section 52 Energy Tax Act
Tax relief is granted on application for energy products that are demonstrably taxed and have been used for the purposes mentioned in section 27 (tax exemption for aviation and shipping). Tax relief is granted to the party that used the energy products.
Relevant forms (in German)
1100 - Energy tax declaration - excluding heating fuels, natural gas and coal
1101 - Energy tax declaration - heating fuels without natural gas and coal
1103 - Energy tax declaration - natural gas
