According to a report published by the European Committee for Professional Yachting, VAT reductions ‘would no longer be applicable in 2020’. The President of ECPY met with the administration of the Directorate of Tax Legislation, DLF, on November 29th, whose officers stated that the application of the VAT reduction on charters as practiced in Italy, France, Malta, Cyprus and Croatia would no longer be applicable for the 2020 season, and the only possible reductions will be pro rate reductions for cruising outside European waters.
The European commission has asked the above-mentioned countries to modify their practices in order to apply the principle of ratio from January 1st 2020, and it is expected that the implementation of new rules on VAT reductions will be applied under the same terms and the same time in different countries.
ECPY has requested that the new rules applicable in 2020 should be known as soon as possible and before the end of 2019. Several points are yet to be clarified and as such, ECPY will be taking part in the negotiations this month. The objective is to obtain identical rules in all European countries and for these rules to be applied concurrently.
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