Clarity on Yacht Charter in Italy

Until recently, it was understood that yachts operating under the French Commercial Exemption could also cruise in Italian waters although no formal statement had previously been issued by the Italian authorities.

On 12 January 2017, Resolution N.2/E was issued by the Italian Fiscal Authority ‘Agenzia delle Entrate’, providing clarity on tax exemption for vessels designed to navigate on high seas under article 8-bis of Presidential Decree n.633 of 1972.

This appears to be very similar to the French Commercial Exemption with the same 70% rule being applied in order to obtain VAT exemption for:

• VAT exempt fuelling and provisioning

• VAT exempt sales of onboard equipment, components and spare parts for vessels

• VAT exempt sales, refit works, repair and maintenance works for vessels

As with any such resolution there are several points that require clarification and this information will follow. Sarnia Yachts will continue to monitor this situation and updates will be issued.

Although this does not mean a big change to the way yachts are currently operating, it does provide clarity on operations in Italy.