Austrian Mineral oil tax exemption for supply of fuel to aviation companies
News – 01.02.2023
Under the Austrian Mineral Oil Tax Act, the tax exemption for supply of fuel to an aviation company to be used for aviation services is only applicable if the fuel is directly supplied from a tax or a customs warehouse. Accordingly, aviation companies cannot apply for a refund of Austrian mineral oil tax if the supplier of the fuel does not have a registered tax or customs warehouse at the premises where the fuel is supplied. This also applies if the mineral oil tax for the fuel has been undoubtedly paid in Austria and the fuel has been used by the recipient for beneficial aviation services.
In a decision dated 14 December 2022 (RV/7200037/2019), the Austrian Fiscal Court stated that the Austrian regulations contradict Art 14 of the Directive 2003/96. According to this provision, energy products supplied for use as fuel for the purpose of air navigation other than private flights must be just exempt. In other words, there is no requirement of a tax or customs warehouse such as the Austrian regulations require. The Fiscal Court further stated that Art 14 of the Directive is sufficiently precise and unconditional such that individuals may directly rely on this provision and apply the tax exemption. The Austrian customs authorities have appealed against this decision to the Austrian Supreme Administrative Court.
In practice, the decision is of particular importance to any (domestic or foreign) company that supplies fuel in Austria to (domestic or foreign) aviation companies for aviation services. Based on the decision of the Austrian Fiscal Court, such supplies might be in future also exempt and mineral oil tax can be refunded, even if the supplier does not have a registered tax or customs warehouse or even if the fuel is not delivered from a tax or customs warehouse.