Taxes, duties and VAT on aircraft: How to safely acquire and operate aviation equipment?

Posted by: 10. 3. 2026
Update: 9/3/2026

Legal and tax implications that can determine success (or unnecessary costs)

The acquisition, operation and financing of aviation equipment are among the most capital-intensive investments. In addition to the technical and operational aspects, however, aircraft owners, operators, leasing companies and investors often underestimate tax and customs impacts, which can ultimately mean differences in the order of millions of crowns.

As a lawyer specializing in aviation law In practice, I repeatedly encounter the fact that incorrectly set transaction structure leads to unexpected expenses or penalties. This article summarizes the key areas that need to be considered before before signing a purchase or leasing contract.

VAT exemption when purchasing an aircraft: Conditions and common mistakes

Czech law allows according to Act No. 235/2004 Coll., on value added tax VAT exemption with the right to deduct tax especially for delivery, modification, repair, maintenance or comprehensive aircraft servicing, including rent manned aircraft used by airlines operating especially international air transport for remuneration. The same applies to equipment installed or used on these aircraft. For other machines, it is necessary to check the classification of the aircraft in question.

In practice, it is not just a matter of formal registration of the operator. The financial administration examines:

real way of using the aircraft,
the nature of the flights (commercial vs. private),
connection to business activity.

VAT deduction – common mistakes

An incorrectly set aircraft usage model (e.g. a combination of private and business flights) can lead to:

k refusal of VAT deduction,
to the obligation to deliver back including a penalty.

Customs and import of aviation equipment

Importing aircraft from outside the EU (USA) and customs procedures

The import of aviation equipment from countries outside the EU (so-called third countries, e.g. the USA) into the Czech Republic is subject to customs procedures, which include: assessment of customs duties and VAT. Rates vary depending on the type of aircraft and its purpose. For most civil aircraft, it is possible duty exemption, however, subject to meeting the conditions – in particular compliance with the given purpose and properly documented.

Leasing, operating vs. finance leasing and tax implications

The chosen form of financing has a fundamental influence on:

instead of VAT taxation,
the moment of the tax liability arising,
possibility of optimizing cash flow.

For international leasing structures, the key is:

set correctly place of performance,
align contractual documentation with tax reality,
avoid the risk of double taxation.

Tax controls in aviation: the reality of recent years

In recent years, the financial and customs administration has increasingly focused on:

business aviation,
VIP traffic,
holding structures with aircraft.

Inspections are usually detailed, protracted and they often have international overlapWithout a legal strategy and knowledge of aviation specifics, clients find themselves in a disadvantageous position.

Why deal with aviation taxes with a lawyer specializing in aviation law?

Aviation technology is on the verge of:

tax law,
customs law,
aviation regulations and operational realities.

A standard tax advisor often does not address operational issues (AOC, wet lease, charter), while a technical advisor overlooks tax risks. Specialized lawyer connects both areas.