Guide to air travel tax

March 30, 2009

March 2009

1. Introduction

Section 55 of the Finance (No. 2) Act 2008 (No. 25 of 2008) provides for an excise duty, called air travel tax (ATT), on departures of passengers on flights from Irish airports.

This is an information guide on ATT for airline operators, groundhandling suppliers and airport authorities, and for passengers who depart on flights from Irish airports.

2. Application of Tax

Subject only to the exemptions outlined in paragraph 4, ATT will be charged levied and paid in respect of every departure of a passenger on an aircraft from an Irish airport on or after 30 March 2009. The tax applies as and from that date irrespective of when a passenger booked or paid for the flight.

3. Rates of Tax

There are two rates of ATT.

A rate of €2 will apply where the flight is to a destination located not more than 300 kilometres from Dublin Airport. This covers all flights within Ireland and flights to the following locations in the UK: Cardiff, Glasgow, Prestwick, Liverpool, Manchester, Blackpool and Isle of Man.

A rate of €10 will apply to flights to any other destination.

4. Exemptions from Tax

ATT does not apply where an aircraft is not capable of carrying twenty or more passengers.

Departures from an airport from which the number of departures of passengers in the previous calendar year was less than 10,000 are not subject to the tax. Following further consideration of the position of small peripheral airports, the Minister for Finance has announced that provision for the raising of this threshold to 50,000 will be included in the next Finance Bill. In the meantime, the increased threshold will be applied on an administrative basis. ATT will not apply, therefore, to departures from Donegal Airport, Carrickfinn, Co. Donegal, or from Sligo Airport, Strandhill, Co. Sligo.

In addition, the departures of certain persons on aircraft and from airports to which ATT applies are exempt from the tax. These are:

The crew of the aircraft (including any relief crew).
A disabled person who has requested and availed of assistance from the airline operator in accordance with EU Council Regulation 1107/2006, and one person travelling with the disabled person for the purposes of providing care and assistance to the disabled person.
A person under the age of two who does not occupy a seat on the aircraft.
Transit and transfer passengers.

A transit passenger is a person who is on board an aircraft which lands at an airport in the course of its journey and who continues his or her journey on that aircraft. A transfer passenger is a passenger who arrives on a flight to an airport and who leaves on a further flight (other than to the airport where the passenger’s journey started), where both flights are part of a single booking and where the length of time between the scheduled time of arrival of the flight to the airport and the scheduled time of departure of the flight from that airport is not more than 6 hours.

5. Liability for Tax

An airline operator (that is, the operator or registered owner of an aircraft operating or offering an air passenger service) is liable to pay the ATT in respect of passengers departing on its aircraft, and is accountable to Revenue in relation to the tax.

In certain circumstances, an airline operator’s groundhandling supplier may become liable for payment of ATT: see paragraph 9.

6. Registration for Tax

Every airline operator must register with Revenue for the purposes of ATT, using the form: Air Travel Tax Registration Form – AT1 (PDF, 108KB) . The form should be completed and returned to “Collector-General, Office of the Revenue Commissioners, Mill Lane, Listowel, Co. Kerry, Republic of Ireland”.

In the case of an airline operator who begins to operate after 30 March 2009, registration must be completed before the airline operator commences flights from Ireland.

7. Payment of Tax

ATT will be payable to the Collector-General of the Revenue Commissioners. The tax for a given month must be paid not later than the 23rd of the following month. For convenience, the tax due for 30th and 31st March 2009 can be paid with the April 2009 payment.

ATT must be paid electronically through ROS (Revenue’s On Line Service), and all taxpayers will need to have a current account in an Irish-based financial institution for that purpose.

Interest is chargeable where ATT is not paid by the due date, at the rate of 0.0322 per cent for each day or part of a day during which the amount due remains unpaid.

8. Security for Payment of Tax

The Revenue Commissioners have power to require an airline operator to provide security for payment of ATT. This could arise, for example, if an airline operator does not comply satisfactorily with filing and payment requirements. If security is being required, Revenue will specify to the airline operator concerned the type and amount of security that must be provided.

9. Groundhandling Supplier’s Liability for Tax

A groundhandling supplier may become liable for payment of ATT in certain circumstances.

If an airline operator is required by Revenue to provide security for payment of ATT and fails to do so, Revenue may then serve a notice on that operator’s groundhandling supplier. This notice will state that, as and from a date specified in it, the groundhandling supplier will be liable for ATT on departures on that airline operator’s flights.

10. Returns

In addition to the monthly payments of ATT, taxpayers will have to furnish a detailed annual return in relation to the tax to the Revenue Commissioners. The first annual return, for 2009, will be due in February 2010, and Revenue will advise well in advance of this what information will be required. This will include details of the numbers of departures liable at each of the rates of ATT and the numbers of persons carried by the airline operator who were exempt from ATT.

11. Records

Regulations to be made shortly by Revenue will provide for the keeping of records relevant to the tax by airline operators, groundhandling suppliers and airports, and for making these records available for inspection by Revenue.

12. Offences and Penalties

It is an offence, under section 55(6) of the Finance (No. 2) Act 2008, to contravene or fail to comply with the provisions of ATT law, and a person convicted of such an offence is liable on summary conviction to a fine of €5,000. This is a standard excise law provision, and there are similar provisions for all of the other excise duties.

Fraudulent evasion of ATT is covered by section 1078 of the Taxes Consolidation Act 1997. That section provides for the prosecution of such offences either summarily or on indictment, and allows the imposition, on conviction on indictment, of a fine not exceeding €126,970 or a term of imprisonment not exceeding 5 years, or both.

Appendix: Frequently Asked Answers

What is Air Travel Tax?

ATT is an excise duty on air travel and it will be charged, levied and paid in respect of every departure of a passenger on an aircraft from an Irish airport on or after 30th March 2009.

Who does it apply to?

With a few exemptions (see below) it will apply to all departures on flights from Irish airports.

For the purpose of ATT what is meant by “Airport”?

“Airport” means an airport within the meaning of the Air Navigation and Transport (Amendment) Act 1998, but does not include an airport from which the number of departures of passengers in the previous calendar year was less than 10,000 as per Finance (No 2) Act 2008.

On 25th February 2009 The Minister for Finance, Mr.Brian Lenihan TD announced that he intends to bring forward legislation to exempt from Air Travel Tax (with effect from the commencement date of the tax, 30 March 2009) those airports that had less than 50,000 departing passengers in the previous calendar year. Revenue has agreed to apply the revised 50,000 departing passenger exemption threshold pending the necessary legislative change being enacted. ATT will not apply, therefore, to departures from Donegal Airport, Carrickfinn, Co. Donegal, or from Sligo Airport, Strandhill, Co. Sligo.

Does the Tax apply if a ticket is booked or purchased prior to 30th March 2009?

The tax applies as and from 30th March 2009 to the departure of each passenger on an aircraft from an Irish airport, irrespective of when a passenger booked or purchased the flight ticket.

Is there more than one Tax rate?

Yes – there are two as follows:

A rate of €2 will apply where the flight is to a destination located not more than 300 kilometres from Dublin Airport. This covers all flights within Ireland and flights to the following locations in the UK: Cardiff, Glasgow, Prestwick, Liverpool, Manchester, Blackpool and Isle of Man.
€10 will apply to flights to any other destination.

When will ATT not apply?

ATT will not apply in the case of an aircraft, which is not capable of carrying 20, or more passengers.

Are there other exempt categories?

Yes.

Members of the aircraft crew (including relief crew).
A child under the age of two who does not occupy a seat on the aircraft.
A disabled person, and one person accompanying the disabled person for the purpose of providing care and assistance. The exemption for disabled persons applies only where the disabled person has requested and availed of assistance from the airline in accordance with Council Regulation 1107/2006 concerning the rights of disabled persons or persons with reduced mobility when traveling by air.
Transit and transfer passengers.
- A transit passenger means a passenger who is on board an aircraft which lands at an airport in the course of its journey and who continues his or her journey on that aircraft.
- A transfer passenger means a passenger who arrives on a flight to an airport and who leaves on a further flight (other than to the airport where the passenger’s journey started), where both flights are part of a single booking and there is not more than six hours between the scheduled time of arrival of the first flight and the scheduled time of departure of the second.

How is the exemption in respect of disabled persons availed of?

Airlines are not liable for ATT in respect of disabled persons, and a person travelling with the disabled person for the purpose of providing care or assistance to the disabled person, where the disabled person has requested and availed of assistance from the airline operator under EU Council Regulation 1107/2006.

From what date does ATT take effect?

As from 30/03/09 ATT becomes due at the time a passenger departs from an Irish airport.

Who is responsible for paying and returning the tax?

The airline operator will be liable for paying and returning ATT in respect of passengers departing on its aircraft.

Who is responsible for paying and returning the tax for chartered flights?

The airline operator will be liable for paying and returning ATT in respect of chartered flights.

What is meant by an airline operator?

An airline operator means the operator or registered owner of an aircraft, offering or operating an air passenger service.

Must the airline operator register with Revenue?

Yes. For the purpose of the ATT the airline operator will be required to register with the Irish Revenue Commissioners.

Who does the airline pay the Tax to?

The tax is paid to the Collector General of the Irish Revenue Commissioners.

When is the payment due to the Collector General?

The tax will be payable monthly. For ease of administration, airline operators’ payment in respect of 30th and 31st March 2009 can be made with April 09 payments.

How is the payment to be made to the Collector General?

The payment must be paid electronically through ROS (Revenue’s On Line Service) and all taxpayers will need to have a current account in an Irish-based bank.

What happens if I overpay my liability in respect of ATT?

The overpayment will be offset against the liability for a subsequent monthly period. Where this is not appropriate, you may contact Revenue at the address shown below or alternatively email: airtraveltax@revenue.ie.

Air Travel Tax,
Minor Taxes Unit,
Collector General’s Office,
Mill Lane,
Listowel,
Co. Kerry,
Republic of Ireland

Are Airline Operators required to file an annual return in respect of ATT?

Yes. In addition to the monthly payments of ATT to be made through ROS (Revenue’s On Line Service), it will be necessary to furnish a detailed return on an annual basis to the Irish Revenue Commissioners, commencing with the first return in February 2010. This return will include inter alia:

The number of passengers who have departed on the Airline Operators aircrafts
The number of passengers who are liable at the €2 rate of tax
The number of passengers who are liable at the €10 rate of tax
The number of passengers who are exempt from the tax including numbers benefiting from the various exemptions provided for within Section 55 of the Finance (No.2) Act. Revenue will furnish you with the annual return form well in advance.

How are airline operators to record the ATT charged?

Regulations to be made by the Irish Revenue Commissioners will provide for the keeping of records relevant to the tax by airline operators, groundhandling suppliers and airports and for the availability of these records for inspection by Revenue.

Can the Irish Revenue Commissioners require an airline operator to provide security for the payment of ATT?

The Irish Revenue Commissioners have the power to require airline operators to provide security for payment of ATT. This power could be used, for example, where an airline does not comply satisfactorily with filing and payment requirements. If security is being required, Revenue will inform the airline operator concerned of the amount and form of security that must be provided.

What happens if an airline operator fails to provide security for payment of ATT as required by Revenue?

Where this occurs the Irish Revenue Commissioners may serve notice on the airline’s groundhandling supplier. This notice will indicate that, as and from a specified date, the groundhandling supplier will be liable for ATT on departures on the airline’s flights.

What are the penalties imposed for offences relating to the ATT?

Section 55 of the Finance (No. 2) Act 2008 provides for penalties. Contravention of the provisions governing ATT is an offence, liable on summary conviction to a fine of €5,000.

Can interest be charged on late payments?

Interest is chargeable where ATT is not paid by the due date, at the rate of 0.0322 per cent for each day or part of a day during which the amount due remains unpaid.

Which Airports are covered by the ATT?

Cork Airport,Co. Cork.
Dublin Airport, Co. Dublin.
Galway Airport, Cranmore, Co. Galway.
Kerry Airport, Farranfore, Killarney, Co. Kerry.
Knock (Ireland West Airport), Knock, Charlestown, Co. Mayo.
Shannon Airport, Shannon, Co. Clare
Waterford Airport, Killowen, Waterford, Co. Waterford

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