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Old Apr 22, 2024 | 7:13 am
  #837  
foothills county flier
 
Join Date: Mar 2023
Location: Foothills County, Alta
Programs: Westjet, Air Canada SE3MM, Best Western, Marriott
Posts: 527
Originally Posted by Adam Smith
Exports are typically exempt from VAT. I think you're thinking of tariffs, e.g. DL avoiding importing Airbuses to avoid Trump tariffs.

The are also questions of insurance, inspections, and other considerations.



A Canadian airline wouldn't pay French VAT on Airbuses, but GST is still payable on aircraft imports to Canada - you net everything out when you remit to CRA including the GST you collect from your customers when you sell them plane tickets (although many AC tickets aren't subject to GST), but if you buy a $100 million Airbus, you still owe CRA $5 million.
Yes, AC will pay the GST on the import of a Aircraft, but should get it back the next month, by input credit. GST is a consumer tax, therefore companies usually do not pay any GST. When I was importing for the EU, sometimes the VAT tax would show up on the invoice, but it was always credited out at the bottom of the invoice.
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