VAT Lump Sum Reductions for Charters Starting in France/Italy End Soon

Limited time for charterers to benefit from VAT Lump Sum Reductions for short term charters (under 90 days) in EU waters

February 17th 2020

There is limited time available for charterers to benefit from VAT Lump Sum Reductions for short term charters (under 90 days) in EU waters. From the 31st of March or 1st of April (depending on where the charter starts) the full VAT rate must be added to a charter’s fee. While this new regulation applies both to charters starting in France and Italy, there are a number of differences between the Italian and French regulation changes. 

FRANCE - The new regulation specifies that the French VAT will be charged at the full rate, i.e. 20%, for time spent in French and/or EU waters, -no VAT charges are applicable while cruising in international or non-EU waters. The new rule will be brought into force from March 30th and will apply to charter contracts signed from this date onwards. This means that charters (starting in France and cruising into international waters) with contracts signed before 30th March 2020 will not be subject to the new rule, and the lump sum reduction of 50 percent still applies.

ITALY - Italy’s new law will be applicable to all charters starting in Italy and/or charters starting outside EU territory and entering into Italy. The ordinary VAT rate of 22% will be due on all Italian charters from April 1st and onwards and the previous “lump sum VAT criteria” (6.6% VAT for charter of yachts over 24m) will no longer apply. The law will enter into force on April 1st 2020, which means that regardless of the charter contract's date of signature and/or payment, all Italian charters will be subject to the new law from this date onwards.

 

 

 

We use our own and third-party cookies to make our website work safely and personalize its content. Likewise, we use cookies to measure and obtain data on your navigation and to adjust advertising to your tastes and preferences. Press the "Accept all" button to confirm that you have read and accepted the information presented. To manage or disable these cookies, click on "Configuration". For more information see our cookies policy.
Modify cookies
Technical and functional Always active
This website uses its own Cookies to collect information in order to improve our services. If you continue browsing, you accept their installation. The user has the possibility of configuring his browser, being able, if he so wishes, to prevent them from being installed on his hard drive, although he must bear in mind that such action may cause difficulties in navigating the website.
Analytics and personalization
They allow the monitoring and analysis of the behavior of the users of this website. The information collected through this type of cookies is used to measure the activity of the web for the elaboration of user navigation profiles in order to introduce improvements based on the analysis of the usage data made by the users of the service. They allow us to save the user's preference information to improve the quality of our services and to offer a better experience through recommended products.
Marketing and advertising
These cookies are used to store information about the preferences and personal choices of the user through the continuous observation of their browsing habits. Thanks to them, we can know the browsing habits on the website and display advertising related to the user's browsing profile.