Aviation VAT 2026: New List of Airlines Eligible for VAT-Exempt Purchases in France
On 23 September 2026, the French Tax Authorities published the new list of French airlines eligible for the VAT exemption applicable to certain transactions relating to aircraft. Based on 2025 air traffic data, this BOFiP list includes 31 airlines. Specific rules also apply to foreign airlines.
Which airlines are eligible for VAT exemption in France?
Under Article 262(II)(4) of the French Tax Code (CGI), VAT exemption applies to “the supply, modification, repair, maintenance, chartering and hiring of aircraft used by airlines operating services to or from foreign destinations or French overseas territories and departments, excluding metropolitan France, where such services represent at least 80% of the services they operate”.
The list of French airlines eligible for the exemption is updated annually based on air traffic data for the previous year. The list published in the BOFiP on 23 September will remain applicable until it is updated.
French airlines that meet the relevant conditions but do not appear on the list because sufficient data are not available to the French Tax Authorities may nevertheless benefit from the exemption by providing their suppliers with a certificate confirming, under their own responsibility, that they meet the required conditions.
What rules apply to foreign airlines?
Foreign airlines are deemed to satisfy the 80% international traffic requirement and are therefore not required to provide a certificate to each of their suppliers.
The exemption nevertheless remains subject to the actual use of the relevant goods and services.
The exemption is also accepted for aircraft belonging to foreign States and used by Heads of State and members of foreign governments during their visits and travel in France.
Conversely, aircraft operated by airlines that do not meet the above conditions, as well as private and leisure aircraft, are excluded from the benefit of this exemption.
Which aviation-related purchases and services may be exempt from VAT?
In addition to transactions directly relating to aircraft, the French Tax Code also provides, subject to certain conditions, for the exemption of transactions relating to equipment intended to be incorporated into such aircraft or used in connection with their operation in flight, as well as certain services supplied to meet the direct needs of the aircraft and its cargo.
Manufacturers, repairers and businesses carrying out modifications that perform exempt transactions may also, subject to certain conditions, purchase the goods and supplies required for those transactions free of VAT, within the annual allowance provided for under the applicable rules.
In all other cases, the standard VAT regime applies to purchases and sales relating to aircraft. Input VAT may then be deductible under the ordinary rules or, for eligible foreign businesses, may be subject to a French VAT refund claim, in particular under the procedures applicable to businesses established within or outside the European Union.
BTOBNICE – French and International VAT Expertise
French VAT incorrectly charged on aviation-related expenditure can represent a significant cost for airlines and foreign businesses operating in the sector. Conversely, incorrectly applying a VAT exemption may expose suppliers to French tax risks.
BTOBNICE assists airlines, aviation businesses and international groups with the VAT treatment of their transactions, the recovery of French and foreign VAT, and the management of their VAT obligations in France.
Have you incurred French VAT on aviation-related expenditure, or would you like to ensure the correct application of a VAT exemption in France?
Contact our VAT experts: contact@btobnice.com
Source: BOI-ANNX-000215
