VAT in Italy for charters:
when it's due
In general, VAT in Italy is due:
- On charters starting from Italian shore or on charters starting from a non-European Country and sailing in Italian waters/to the Italian shore.
- On the part of the charter fee related to the European use (in the first case) or to the Italian use (in the second case) of the yacht.
In particular, with regard to VAT rate and reduced tax basis:
The standard VAT rate in Italy is 22% and it is calculated on the charter “fees to be paid, including yacht charter, delivery fees, rental fees and similar, for the amount related to the actual use in European waters” (Italian Tax Authority interpretation N. 43/2011).
Did you know...
Pesto Sea Group is at your disposal to examine - on a case-by-case basis - your company’s specific needs, the charter agreement conditions, the planned itinerary (also in respect of the application of the reduced flat rate), the company’s documents, the limits provided by the Tax Authority in case of charter agreement with the yacht owner, and the possible specific client's requests in order to point out the related interpretative framework and ascertain the relevant tax fulfilments.