VAT - Italy

Italy VAT Registration Yacht

The VAT scheme allows for a reduction of VAT on charters exclusively for cruising outside the Union territory, aligning with the general EU regulations aimed at combating VAT evasion.

For Italian charter contracts, a 22% VAT will be applicable, determined by the actual utilization of the yacht within the Union territorial waters. The yacht must furnish evidence in either paper or digital format (as specified in Provision no. 341339/2020 issued on October 29) to substantiate the precise cruising routes in non-EU and international waters. Ultimately, the 22% VAT will be levied solely on the portion of the charter conducted within Italian and EU territorial waters.

 Italian 22% of VAT applies to the charter fee, delivery/re-delivery fees (if applicable), and operating costs associated with the Advance Provisioning Allowance (APA), unless already settled at the source or not duly documented.

 22% Italian VAT is applicable in the following scenarios:

• For charters commencing in Italy and navigating within EU waters

• For Italian static charters

• For charters originating outside the EU (e.g., Montenegro) and entering Italy for the days spent by the yacht within Italian waters

• For charters commencing in Italy with an itinerary encompassing both EU and non-EU waters