What about 2021 Italian charters signed before November 1st?

The Italian Tax Authority (AGENZIA DELLE ENTRATE) issued Resolution no. 47/E/2020 on August 17th about the postponement to November 1st, 2020 of the new VAT Law on charters contained in the Simplification Decree no.76/2020 entered into force on July 17th.

This latest Resolution clarifies that:

• the “old” VAT scheme of forfait VAT (6.6% for yacht over 24 meters) will be applicable to charters starting in Italy until October 31st;

• On November 1st the “new” VAT Law (according to the Provision issued by the Italian Tax Authority on June 15th - protocol no. 234483/2020) will enter into force and it will be applicable to all charters starting in Italy from November 1st onward.

All above said, we further clarify that Italian charter contracts executed after October 31st 2020 will be subjected to the New VAT law, it means that 22% Italian VAT will be due only on the time spent in EU waters according to the means of proof proving the effective use of the yacht outside the Union territorial waters.

It’s still not clear if the new VAT law will be applicable also to those charters for season 2021 executed and fully paid before November 1st.

We reserve the right to provide to our clients, additional clarification if there will be any from the Authorities.

DISCLAIMER | The information provided in this text is for general information purposes only and doesn’t replace the advice of a legal advisor or of a tax consultant.


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