- Ministerial Regulation No 18 2025 on VAT incentives for economy class airline tickets was issued
- Passengers pay 5 percent VAT on domestic economy class flights
- Government pays 6 percent VAT on the same flights
- Reimbursement includes base fare, fuel surcharge, and other costs
- VAT incentive applies to purchases from March 1 to April 7 and flights from March 24 to April 7
- Air transportation business entities must meet specific requirements
- Regulation took effect March 1
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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