Introduction

The AOC-based VAT 2025 calculator is an evolution of the original AOC VAT calculator with additional logic for:

• Private flights — flight types that withhold the AOC exemption
• Governmental/diplomatic flights — flight types that make the whole order exempt with a dedicated VAT code
• Airside goods — a separate exemption code for goods (vs services) delivered airside
• Out-of-scope (non-EU) businesses — a dedicated exemption code for business customers outside the EU
• Debtor-only checking — optionally ignore the "use operator settings" mechanism

Read the AOC VAT calculator article first — AOC validity criteria and the general concept are the same; this article focuses on what the 2025 version adds and changes.

When Does the Calculator Run?

The calculator logic only runs when the debtor's Charge VAT setting is Controlled by calculator (or via operator settings). By default the setting ForceDebtorSettingsOnly=true makes the calculator always validate the debtor's AOC, even when the debtor is configured to use operator settings.

Order-Level Logic

1. Flight type check — using the configured flight type groups and AocVatFlightTypeCheck (ArrivalOnly / DepartureOnly / Both):
   • Private flight → VAT from product. Info: "The flight is Private. AOC does not apply"
   • Government flight → all order lines receive the dedicated government VAT code. Info: "The flight is Governmental. VAT exemption applies"
2. AOC validation — if the flight is neither private nor governmental:
   • Valid AOC and aircraft not excluded → Airside Exempt. Info: "[Contact] has valid AOC"
   • Aircraft excluded from AOC → VAT from product. Info: "Aircraft excluded from AOC"
   • Invalid/expired/missing AOC → VAT from product, with warnings ("AOC number of [contact] is unknown…", "…has no AOC expiration date…", "…has an expired AOC…")
3. When not exempt, the info message also shows: "Customer country for VAT purposes is [ISO code]"

Note on the "Both" setting: unlike the original AOC calculator, the flight counts as private/governmental when either the arrival or the departure flight type matches (the original required both legs to be present and checked both).

Per-Service VAT Code Selection

Each product's Is Airside Product flag and its VAT category for reversed purposes (Goods / Services) drive the code selection:

EC Reversed VAT changes

• EC reversed VAT additionally requires the customer's country to be an EU member (the original calculator allowed any foreign country configured for reversed purposes)
• EC reversed VAT is never applied on government flights

Configuration

Calculator Settings (VAT Rule Group)

Administration VAT Codes

Product Settings

• Is Airside Product — airside vs landside
• VAT category for reversed purposes — Goods vs Services; this now also selects between the two airside exemption codes

Contact Settings

• Standard AOC fields (AOC Number, Expiration Date, Has AOC)
• Country for VAT purposes and VAT Number — drive the local / EU-reversed / out-of-scope classification

Example Scenarios

Scenario 1: Airline with valid AOC, commercial flight

• Airside services → airside service exempt code; airside goods (e.g. de-icing fluid) → airside goods exempt code; landside services → depends on the customer (see below); landside goods → product VAT

Scenario 2: EU business customer without valid AOC

• All services (airside and landside) → EC reversed VAT code; goods → product VAT
• Info: "Customer country for VAT purposes is DEU"

Scenario 3: US (non-EU) business customer without AOC

• Services → non-EU business exemption code; goods → product VAT

Scenario 4: Private flight

• Flight type in the private group → no AOC exemption; codes follow the service rules for the customer type
• Info: "The flight is Private. AOC does not apply"

Scenario 5: Governmental flight

• Flight type in the government group → every order line gets the government VAT code, EC reversed VAT suppressed
• Info: "The flight is Governmental. VAT exemption applies"

Differences vs the Original AOC VAT Calculator

Important Notes

1. Local customers keep product VAT on services even without an AOC — the out-of-scope and reversed logic only applies to foreign customers.
2. Government flights are exempt for everyone — the customer's AOC and country are irrelevant on a governmental flight.
3. The government VAT code must be tagged with the configured custom property (value "Yes") before enabling the setting, otherwise the calculator fails to initialise.
4. Product Goods/Services categorisation matters more than before — it selects between two different airside exemption codes and controls the landside-goods behaviour.