The Notice is relevant to all persons who receive deliveries of jet kerosene or aviation gasoline, or who use these fuels; although it is, however, particularly relevant to commercial users of aviation gasoline, and users of jet kerosene for private pleasure flying.

Ireland had availed itself of a derogation from the requirements of EU law to apply mineral oil tax reliefs to jet kerosene and aviation gasoline for “private pleasure flying” (i.e., use of an aircraft for any purpose that is not commercial, including the use of any aircraft hired out for such purpose).

Jet kerosene for private pleasure flying had been exempted from the tax, and a reduced rate of EUR276.52 per kilolitre had been applied to aviation gasoline used for such flying.

Because this derogation has now expired, these fuels must, when used for private pleasure flying, now be taxed at the same rates as auto diesel and petrol respectively.

Therefore, with effect from November 1, 2008, the new rates will be:

• EUR368.05 per 1,000 litres, for jet kerosene, and
• EUR508.79 per 1,000 litres, for aviation gasoline.

New requirements are imposed, in order to differentiate between fuels used for commercial/business and private pleasure purposes, and to tax each usage accordingly. In both cases, however, it is the user of the fuel, and not the supplier, who is subject to those requirements.

Because most jet kerosene is used for a commercial/business purpose, and is exempt from mineral oil tax as such, it will continue to be released for delivery to authorised persons without payment of mineral oil tax.

Where, however, jet kerosene is used for private pleasure flying, the user will be required to make a return to Revenue, by March 1 in the following year, of the quantity used in a calendar year, and to pay the mineral oil tax on that quantity at the appropriate rate, which is currently EUR368.05 per 1,000 litres.

All deliveries of aviation gasoline will, from November 1, 2008, be taxed at the rate of EUR508.79 per 1,000 litres - an increase of EUR232.27 per 1,000 litres on the previous rate.

Where, however, the user can show that the fuel has not been used for private pleasure flying, but for a commercial/business purpose, a refund can be claimed, at the rate of EUR232.27 per 1,000 litres.