VAT on charter fee
and fuel consumption
According to a recently issued Italian law (2021), VAT on yacht charters will be 22% based on the percentage of the charter fee corresponding to the time actually spent by the yacht in the EU territory. This applies as well on the fuel charged to the charterer based on the consumption that is considered, by the Italian Tax Authority, a variable part of the charter fee, hence subject to VAT with the same rate as the charter fee.
For the sake of clarity, the time spent in international waters during the charter, allows you to obtain a reduction of the taxable basis. We remind you that it is crucial to clearly demonstrate evidences of high seas navigation. At this regard we suggest you to take a look at the LOGNAV dedicated page.