The supply of vessels used for high sea navigation, purchases and imports of goods and services, and the leasing of pleasure crafts may be exempt for VAT purposes (see, Article 7-sexies and 8-bis of the Presidential Decree No. 633 of the 26 October 1972).
The Article 1, par. 708 and seq. of the Law No. 178 of the 30 December 2020 (2021 Budget Law) specifies the criteria for applying the exemption and lays down the obligation to issue a declaration concerning: (i) the use of the vessel for navigation on the high seas and (ii) the percentage of use of the services of leasing, even financial leasing, rental and the like, not at short term in the EU territory.
The template for the declarations has been approved with provision of the Director of the Tax Authority.
Decision of the Director of the Tax Authority, No. 151377/2021 of the 15 June 2021
Gianni & Origoni
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