New law introducing a tax on air travel from 1 April – are you affected?

On 1 April 2018, a new law on tax on airline travel will come into effect. Will your company be affected?

Air travel tax will be paid for each passenger travelling from an airport in Sweden in an aircraft approved for more than ten passengers. The tax liability will come into effect when such an aircraft takes off from an airport in Sweden. The tax will be paid on the basis of either SEK 60, SEK 250 or SEK 400 per passenger depending on the final destination of the passengers. For calendar year 2019 and subsequent years, the tax amount will be re-calculated. Tax liable are commercial airline companies.

The air travel tax will not apply to children under two years, transit passengers, transfer passengers, airline personnel in service or passengers who due to technical disruption, weather conditions or other unforeseeable events have not reached the airport of their destination and who, as a consequence, have a new departure time.

What should the companies impacted by this new law do?

• register with the Swedish Tax Agency,
• prepare the compilation of data which will need to be reporting for taxation,
• produce routines for preparing and presenting the tax return and handling of the tax payments, as well as establishing ongoing compliance routines and processes.

You are most welcome to contact us if you need assistance in this preparatory work and as regards the more ongoing reporting and handling of this new tax.

Do you have any questions on Value Added Taxes, customs and excise duties?