After Spain joined the European Union in 1985, VAT became applicable on the supply of means of transport at a luxury rate of 33% tax. This luxury rate was reduced to 28% in 1992. The same year 1992 after the VAT harmonization that capped the standard Spanish VAT rate was to 15%, Spanish authorities in order not to lose revenue implemented a new tax, the IEDMT. The new tax provisions were included in the Spanish Excise Duty Law 38/1992, of 28 December, of Special Taxes. The combination of the new IEDMT tax rate of 13% and the standard VAT rate gave as a result the same tax revenue for the authorities, 28%. Later on the due to changes in VAT rates, IEDMT tax rate was reduced to 12%.
The IEDMT (also known as Matriculation Tax) legal provisions are laid down in the Excise Duties Law 38/1992. The situations where the tax can be applied on private aircrafts are established in article…
