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As of 26 June 2018, an additional 25% customs duty is applied to yachts and boats from the US that are being imported in Italy. This duty is in addition to the 22% Italian VAT already due on importation of yachts from any country. With regard to charter activity, it is very important to point out that the new Regulation (EU) 2018/886 does not apply to US yachts and boats navigating in European [...]
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Referring to the ICE (Italian Commercial Exemption) introduced in Italy with Resolution N° 2/E on January 12th 2017, that grants to Commercial Yachts to obtain the VAT exemption, has been further clarified by Italian Tax Authority with the Resolution N° 6/E on last January 16th (Resolution N° 6/E 2018) the correct application. Here attached you will find the docum [...]
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To ensure compliance with Article 148(a) of the Sixth Directive, the Italian tax agency defines the scope of "vessel to be used for navigation on the high seas”. Resolution 2/E clarifies the conditions commercial charter yachts must meet to benefit from an exemption on VAT and excise duty in Italy. The Italian resolution follows the French lead (BOFIP 05/2015). Resolution 2 [...]
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Is VAT applied to charters in Italy? Yes, VAT is applied to all charters that start in Italian waters. Do I need an Italian VAT number if I charter in Italy? Yes, you need to have a VAT number in each EU Member State where you intend to start charter activity. How do I get a VAT number? You must appoint a local fiscal representative unless the yacht owning company has register [...]
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What is the VAT rate on charters? 22%. Can I pay VAT on reduced fees in case of international voyage? Yes, if a yacht cruises within and outside Italian/EU waters, VAT is only due on the time spent in EU waters. Since it is difficult to determine how much time will be spent within and outside EU waters before the charter, the time spent outside Italian/EU waters can be quantified as a & [...]
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Is VAT due on delivery and redelivery fees? Yes, VAT is due on delivery/redelivery fees and is payable at the same percentage as on the charter fees. Can I purchase duty-free goods and services (APA) in Italy? Yes. APA includes two types of expenses: Expenses to cover charterer's personal needs (like restaurants, taxis, supermarket supplies, landside trips) and Expenses which [...]
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Can the Beneficial Owner charter its/his yacht? Yes, it/he can charter at a slightly lower rate than retail. VAT is due on the charter fee.
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