About yacht charters, the ordinary Italian VAT rate for the rent is 22%, but the effective rate is lower due to the particular calculation of the taxable base. Yacht charter services carried out in the territory of the European Union are totally subject to VAT (at the rate of 22%).
Yacht charter services carried out elsewhere (= out of the territory of the European Union) are exempt. Up to 2019, the permanence of the boat in European territorial waters was subject of presumptions (based on the size of the boat and the type of propulsion). Such presumptions will no longer operate in 2020.
The Law no.160 of 2019 has introduced the obligation to demonstrate the effective use and the actual use of the service outside the European Union in order to achieve the VAT exemption. This new rule applies to operations carried out from April 1, 2020.
Source: TRA
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