Options for regulating the climate impacts of aviation

For the part of the journey outside Germany, the tax cannot currently be levied due to the territorial principle anchored in Article 48 of the VAT Directive: “The place of supply of passenger transport shall be the place where the transport takes place, proportionate to the distances covered.” In a response to a minor question on the taxation of cross-border flights, the German government has conf. [...] 9 Options for regulating the climate impacts of aviation The fact that none of the EU Member States levies VAT on international flights can be traced back to the decades-long policy pursued within the framework of the ICAO. [...] Removal of cap on revenues from air ticket tax and the linking of revenues from the EU ETS In addition, the cap on revenues from air ticket tax and the linking of the amount of the ticket tax to the tax revenues of the previous year, including revenues from emissions trading, should be repealed. [...] 14 Options for regulating the climate impacts of aviation not only the tax rate, but also the cost of transport by lorry and the urgency of the freight. [...] Further dovetailing of the aviation ETS and the stationary ETS and the revision of the linear reduction factor are being discussed within the scope of the upcoming revision of the ETS Directive due to the tightening of the EU’s climate target for 2030.