In regards to our recent news about the VAT exemption regime applicable to vessels chartering in Italy, the Italian Revenue Office (Agenzia Delle Entrate), according to the new Italian Budget Law 2021, has finally issued and released the necessary guidelines and declaration form to fulfill and file with electronical transmission.
The assigned number and details of the protocol attesting the successful transmission to the Revenue Office digital system must be kept on file and indicated in the invoices of the suppliers.
As a consequence of this, starting from 15th August 2021, the current procedure (the paper form to send to the Supplier) to obtain the VAT exemption will no longer be valid.
Please find below (also litsted into our DOWNLOAD area”) the Protocol RU-0151377 published on 15th June 2021 by The Italian Revenue Office along with the relevant guidelines.
Before executing the electronic transmission of the declaration form to the Italian Revenue Office, the owning company will need to perform the necessary calculation to confirm the +70% of trips at the international waters (high seas) as well as it needs to always keep the related evidences and documental proofs in case of any control or official audit (contracts, copy of the logbook, AIS data or data extracted from any other electronic on-board navigation, invoices and receipts) by the Authorities.
We point out that very strict penalties and sanctions are foreseen in the event of an official audit by the Italian Tax Authorities in the case that the owning company will not be able to demonstrate what has been declared. on this end, we strongly recommend to always keep on file for a minimum of 6 years all the necessary evidences confirming what it has been declared to the tax Authority on the electronic declaration form.
Yacht Welfare is at your disposal to provide further details.
It definitely is the right time to book your Italian Charter for season 2021.
The Italian Agency of Revenue (Agenzia Delle Entrate) never ceases to amaze us. This time positively! This past 30th September the Resolution N. 62/E has been issued and released by Rome.
For all intents and purposes the new Resolution provides that the old VAT scheme (also known as the “6.6% rule”) will still remain applicable to all charter contracts concluded within 31st October 2020.
Please know that Resolution 62/E 2020 applies either to short term contract (Charter) and to long terms contract, leasing contract, rental contract and similar ones.
We need to remind you all that for the Italian law (art. 1326 Civil Code) the contract is concluded in the moment, in which the offeror gains the knowledge of the acceptation by the offeree.
The acceptation must reach the offeror by the time limit set up by himself or by the time usually necessary according to the nature of the contract or according to general use. The offeror can hold effective the late acceptation, if he informs the other party immediately about this decision. If the offeror requests a certain form for the acceptation, the acceptation has no effects if it is set up in another form. An acceptation not corresponding to the offer is a new offer.
An Addendum where new terms and conditions are agreed corresponds to a new contract.
Therefore be careful on later addendums as it all depends by the provisions (e.g. new departure place, etc.) contained into the contract agreement stipulated by the parties and the date when the contract agreement is considered as concluded by the law.
what we have informed you about this past 16th June 2020 (see here
for more info www.yachtwelfare.it/new-rules-in-italy)
the new VAT rules (VAT at 22% due on actual time spent into EU waters) have
unexpectedly been postponed to 1st November 2020.
Minister has now decided – with a huge delay – to follow in the footsteps of
the French Finance Minister and so to suspend until 31st of October the
application of the new VAT rules in order to revitalise the yachting industry, especially
after the recent situation of COVID-19 pandemic.
So let’s keep
the old rule (e.g. 6.6% flat-rate reductions on Charter Fee) with the purpose
of implementing the Charter activity for the current summer season encouraging
(is anybody feeling encouraged now?) tourists to come to Italy.
The above is
part of the last “Simplification Decree” N. 76/2020 published on the Official
Gazette (Gazzetta Ufficiale, Serie Generale N. 178 del 16/07/2020, Suppl.
Ordinario N. 24), entered into force on July 17th 2020 (in which the
word “April” – contained in subparagraph 726 of Law 27/12/2019 N. 160 – has
been replaced by the word “November”).
of yesterday, June 15th 2020, the VAT due on Italian charters
must to be calculated on the basis of the actual time spent by the charter into
the EU territorial waters.
logical consequence of this, the taxable amount will be subject to a
pro-rata reduction based on the cruising outside the European territorial
waters (international waters), according to the real time miles spent at
“high sea” (international waters), in accordance to the hereinbefore
mentioned article 59.
The new rule does not apply to any Italian charters signed before 15th June 2020 (date of release of the official Provision by the Agenzia Delle Entrate).
What do we
need to do now on?
To put it
on board need to split the Charter time into two parts:
a.total hours spent into EU Waters
(Italy, France, Spain, etc.).
b.total hours spent at the High
Sea (International Waters).
and particularly important, the following evidences/proofs must be collected,
kept on file and submitted in case of inspections by the Authorities:
1. trip route cartography.
2. data/info extracted from satellite
and/or navigation systems.
3. data/info extracted from
transponder systems (e.g. AIS system).
4. logbook (ship’s log) and/or
5. papers attesting any berth stay in
non-EU ports (e.g. berth invoices, berth contracts agreements,
arrival/departure formalities, etc.).
6. papers attesting any purchase of goods
and/or services in non-EU shops/businesses.
7. the short-term Charter Agreement and/or analogue Contracts regarding the hire of the yacht.
evidences collected must prove the maritime routes sailed by the yacht with
extreme accuracy and coherence.
evidences/proofs collected must be kept on file for a period of time according
to Art. 57, paragraphs 1 and 2, of the
Presidential Decree N. 633/1972 (therefore, until 31st Dec. of the fifth year subsequent to
the year in which the Declaration has been filed or – in the event that the
Declaration hasn’t been filed – until the 31st Dec. of the seventh
year subsequent to the year in which the Declaration should have been filed).
the procedures and reduce the burden we – at Yacht Welfare – have set up a
special form for all our Clients to summarize all the necessary data and info.
This form is called PPNRF (Passage Plan & Navigation Report Form) and it is
made in editable pdf file.
needs to be fulfilled in all its parts and sent back to us along with the
necessary pictures, mini videoclips, logs, etc. annexed.
Welfare will keep assisting you by double checking the info provided.
to our news released on 19th December 2019 (see here for more info: www.yachtwelfare.it/vatreduction) this past 25th May 2020
the Italian Revenue Office (Agenzia Delle Entrate) has finally put under Public
Consultation a draft concerning the provisions for the application of the VAT
reduction on Italian charters, according to the EU’s articles 56 and 59 of the
EU VAT Directive 2006/112/CE.
credited method to calculate the actual VAT due would seem to be a pro-rata
reduction based on the cruising outside the European territorial waters,
according to the real time or to the actual cruising miles spent at “high sea”
(international waters), in accordance to the hereinbefore mentioned article
the main focus is to find and agree the list of papers, equipment and methods
to determine the actual use of the yacht outside the EU territorial waters and
so the exact VAT due in Italy.
date, finally, the new law will come into force only from its official
means that any charter signed before the official publication of the new law
will be subject to the old legislation (e.g. 6.6% flat-rate reductions on
there’s still the chance that the Italian Minister will decide to follow in the
footsteps of the French Finance Minister and so to suspend until 2021 the
implementation of the new regulation in order to revitalise the yachting
industry, especially after the recent situation of COVID-19 pandemic.
We will let
you know about the progress of this long-awaited decisions as soon as possible.
with us in the forthcoming weeks to know and assess the developments.
Italy is sailing again! With his last DPCM (Decree of the
President of the Council of Ministers) released on May 16th 2020 the
Italian Prime Minister expressly authorised the possibility to sail in Italy within
the region of residence. This rule will last until 2nd June.
As of June
3rd 2020 the regional limit will fall and it will be possible to freely
sail around all the Italian coasts.
Also – not
less important – from this date June 3rd) the Italian Government
will reopen the borders to all EU citizens without the need to spend quarantine
This is the
clear sign that the Mediterranean summer 2020 is finally started.
sector has received the go-ahead for the measures to be taken for the
resumption of the charter activity.
measures consist in very simple procedures, most of which are now widely known
has been confirmed that a COVID-19 test will be required for the charter’s
permanent crews, who will need to deal with many different guests, especially
on large yachts.
Ministry has pointed out that in pleasure yachting the individual
responsibility is the essential element in making social distancing measures
a. interpersonal distance of at least one meter
b. avoiding close contact
c. proper sanitization of spaces
d. nose and mouth protection for passengers
make it clear that the rules published by the Ministry regard pleasure
yachting, chartering, renting as well as the management of ports and marinas.
Below you will find the key points to respect when sailing in Italian waters.
/ PLEASURE YACHTS
measure remains the “social distancing”. As you all know this means
that persons need to stay at least one metre from each other, unless they are
part of the same family or live together.
Even the relatives, if not living together, must respect the social distance of one person for each linear metre of the boat. The provision of personal protective equipment for passengers and the use of surface sanitizer are also mandatory.
/ CHARTER YACHTS
preventive rules for private vessels apply to yachts engaged in charter
activities. Only persons living in the same family are allowed to stay together
in the same cabin.
is required to sanitize all the yacht’s areas, including the engine room and
services. Owners are also obliged to provide adequate supplies of sanitizing
products as well as information signs, written in several languages, to make
the charterer and his guests aware of the necessary social and hygienic
measures to take.
specific measures must be adopted by the crew; let’s see which ones.
crews have the obligation to use masks and gloves and any other protective
equipment depending on the type of the boat and the particular circumstance, for
instance during mooring, unmooring, bunkering and towing operations.
– being called in some cases to carry out first aid actions (as in the case of
the Captain for whom the elementary first aid course and BLS is compulsory) – there
should be the obligation to undergo a preventive (before boarding the yacht)
and periodical first aid test at COVID-19, the result of which must be duly kept
each member of the crew is mandatory the measurement of the temperature on a daily
must also implement the prevention of unauthorized access to the ship to
strangers, while in port or at sea.
generally live in the same house are allowed to share accommodation in the same
Also for guests the general rules on social distancing and interpersonal prevention measures apply (i.e. one person per meter of the linear length of the boat, including crew members, unless the guests live together).
PORTS AND MARINAS
The managers of Italian marinas must provide their ports with special information signs, written both in Italian and English language, on the measures of conduct to respect, the use of personal protective equipment (PPE/DPI), the installation of sanitizing dispensers on the docks, the limitation of movements, bans on gatherings and the respect for social distancing.
AND SYSTEM RULES
mandatory to comply with the regulations for travel within the Region and
between Regions and the respect of international anti-contagion laws during
navigation outside national territorial waters.
As this is changing for the better day-by-day we strongly recommend all of you to stay tuned to our website www.yachtwelfare.it/news to know the latest updates.
For what is
concerned to the VAT due on Italian charters, UCINA (Confindustria Nautica, the
Italian Marine Industry Association) is still dealing with the Italian
Authorities to postpone the application of the new law (see here for more info www.yachtwelfare.it/somegoodnews). Everything leads to the hope that
Italy will quickly join the decision taken in France, repealing the provisions
contained in the new law and giving continuity to the old flat rate reduction
percentages scheme (i.e. taxation at 22% on 30% of the agreed Charter Fee for
yachts over 24 metres, equal to the “quick” rate of 6.6%) in order to
guaranteeing “certainty” for operators in the yachting sector,
especially now that they have just started their activity again after this
extraordinary situation and encouraging yachts to come to the Mediterranean for
the charter season.
know that the old legislation (flat-rate reductions on Charter Fee) will still be effective
in Italy until the publication by the Italian Tax Office of appropriate
provisions containing the clear list of methods and means suitable to
demonstrate the effective use of the service outside the European Union.
we would like to inform
you that, unlike in many other
Countries of the Med which temporarily stopped the marine traffic, the
ports in Italy and specifically Sanremo and Genoa are operational and
open for technical calls (calls for tourism reasons are not currently
allowed) and that we can assist any yachts wishing to
call at Sanremo and Genoa with all the necessary formalities and authorizations.
Please find here below an overview on the procedures required a list of the
necessary documents to be allowed to call here.
ARRIVING IN ITALY
To be allowed to call at Sanremo
and Genoa, every yacht needs to apply maximum 24 hours before the yacht’s
arrival through a registered agent for the Libera Pratica Sanitaria (Free
Health Practique) to the Health Maritime Office by filling in the “Declaration
of Health”, a document containing the yacht’s details and some general
information about the overall health status of the crew (which you can require
emailing us to email@example.com). Along with that, the Authorities need also copy of
the below listed papers:
1) Yacht Certificate of
3) crew list
4) a list showing the yacht’s
last 10 ports of call
5) copy of the departure
clearances from the last one
6) a declaration on letterhead
signed by the Captain and stamped with the yacht’s stamp, stating the following
a. Reason of the call
b. Address where the crew members will spend their 14 days isolation period
(the yacht’s name and berth are valid and enough)
c. Confirmation that no crew member had flu symptoms or fever for at least 14
days before the yacht’s arrival and possibly a report of every crew member’s
daily temperature during the last 14 days before the yacht’s arrival.
Please be informed
that, once arrived, all yachts and crews will have to enter a 14 days
isolation period (from which the sailing days from the last port are deducted).
Any crew movements is
currently subject to the Immigration Police and the Health Maritime Office
approvals; in order have the embarkation or disembarkation of a crew member
authorized, we need to provide them with the following information and
EMBARKING CREW MEMBERS
1. As for anybody else entering Italy from abroad, a self-declaration (modulo
rientro da Italia, please feel absolutely free to require a copy of it emailing
to firstname.lastname@example.org) showing the
address where the 14 days isolation period will be spent and how they will
reach it (once again, the yacht’s name and berth are valid and enough)*
2. Copy of the crew member’s passport
3. Copy of the crew member’s contract of employment*
DISEMBARKING CREW MEMBERS
1. The reason of the movement (only repatriation and hospitalization
reasons are allowed)
2. As requested for the arrival, they need a new declaration, this time signed
also by the disembarking crew member, stating that they did not have any flu
symptoms or fever for at least 14 days before their sign off *
3. A report showing the crew
member’s daily body temperature during the last 14 days before their
disembarkation is strongly recommended.
4. Copy of the crew member’s passport
5. Copy of the crew member’s flight reservation (or travel information if they
leave with a private transfer or vehicle)*
Please note that, the
disembarkation for repatriation is allowed only if the crew member flies home
on the same day, therefore it is strongly suggested to book flights leaving in
the afternoon in order to have enough time to carry out the necessary
* documents that the crew
members will have to bring with themselves during the travel in case of check
from the authorities.
Please be informed that all
the above procedure need some advance to be carried out, therefore, we kindly
ask you to provide us with the necessary documents at the earliest opportunity.
GETTING OFF THE BOAT
end of the general lockdown decided by the Italian Government to stop the
spread and prevent people from getting the virus is confirmed on Monday April
13th but it will be most probably postponed to the beginning of May. That means
that so far any outwards, inwards or internal movements have to be justified by
a demonstrable reason such as repatriation reasons, working reasons or medical
reasons; such reasons will have to be stated into the auto
dichiarazione form (please require it to email@example.com) and showed to the authorities in case of checks.
always at your complete disposal for any questions or clarifications.
look forward to seeing you all in the Med soon for a sunny 2020 Charter Season!
The 2019 edition of the Yacht Welfare VAT Guide is finally released. You can ask your copy by sending an email to firstname.lastname@example.org. Our Team of Lawyers and Fiscal Advisors is always available to assist you during your Charter Season in the Mediterranean Sea.
The French Customs Office has released important
dispositions and clarifications about yachts engaged in commercial and
transport activities (e.g. charter).
25% DUTY TO APPLY TO US BUILT BOATS
The French Customs Office confirms that every US
built boat having commercial registration and officially imported in European
Community before the 22nd of June 2018 will be exempt from the
payment of the 25% customs duty on the boat’s return in Europe if all the
standard import formalities will be executed (the same formalities and
practices arranged before the 25% rule).
The same principle applies for boats exported from
EU before the same date (Export Declaration is required. In absence of this Declaration
an alternative proof of exportation has to be provided).
All the boats having completed the import back to
the European Community can benefit from FCE/ICE (French Commercial Exemption /
Italian Commercial Exemption) advantages according to the +70% rule.
If the boat has been imported under the FCE/ICE
regime in 2018, it is still required to provide the proofs attesting its
qualifications to take advantage of the same benefits (+70% international
Therefore, we confirm that any and all US built
boats falling within the below listed cases:
1. never imported
before the 22nd of June 2018, or
before the same date but having changed the Owning Company (sold/purchased)
are subject to the
application of the 25% customs duty.
CHARTER UNDER TEMPORARY ADMISSION STATUS
Besides, all US built boats never imported before
the 22nd of June 2018 will have the possibility to perform
commercial activities (Charter) under Temporary Admission status, whether the
boat is registered as commercial or private (in the latter case only if the
Flag Registry admits this condition).
However, there are specific restrictions to the
impossibility to have EU resident Charterers
b. at present
not all the EU Members States still permit a boat under Temporary Admission to
execute commercial activities (Charter).
In regards to non US built boats (EU or non-EU) registered
as commercial and to coming to Europe to execute commercial activities
(Charter), which are under “Import Status”, the FCE/ICE benefits apply to all
those non-EU boats (as well as to some EU boats in specific cases: more info
will follow) intending to execute commercial activities (Charter). This is
the only case in which the Charterer can be a EU resident.
Concerning the non-EU boats which will not be
imported (both Commercial and Private registered), they will only have the
possibility to execute Charters under the regime of Temporary Admission and
will not be entitled to charter to EU resident subjects.
As far as is concerned to side boats
(chase-boats/tenders) having own registration and which are employed to attend
the mother ship (main vessel), we are still waiting for the necessary
clarifications by the Customs about the possibility to charter said chase boats
to EU residents.
All the hereby listed rules and information provided
might be subject to variations by the Customs Office.
Therefore please always contact us to know if something
has been changed, integrated or just updated.
Companies identified for VAT in Italy by a Fiscal Representative are not
required to be accredited to the SDI – Interchange System (SDI – Sistema di
Interscambio ) for the e-invoicing procedure introduced by the Italian Tax
Authority (Agenzia delle Entrate) starting from January 2019.
Decree N. 119/2018 (art. 15) amends the Italian regulation that introduced the
mandatory electronic invoicing starting from 1st January 2019 (art.
1, para. 6 of Law Decree no. 127/2015) according to Implementing Decision (EU)
2018/593 from 16 April 2018 – which authorized Italy to the widespread use of
electronic invoices – specifying that the obligation applies only to
subjects established within the State (Italy) and not to foreign subjects identified for Italian VAT purposes, but
not residing therein. This amendment implements what had been anticipated by
the tax Agency in its Circular Letter no. 13/2018.
Owning Companies do not have the obligation to issue electronic invoices
means that the actual procedure does not change and each invoice relevant to
VAT due on Charters – having fiscal applicability in Italy – will still need to
be issued in hard copy (paper format).
note that all the paper invoices issued by suppliers will need to contain the
following wording: “copia cartacea della
fattura” (translated: hard copy of the invoice). This will allow the Owning
Company to still be able to deduct the VAT debited by the supplier. A “courtesy-copy”
of the same invoice can be sent by the supplier to the client in digital format
(e.g. pdf file sent by email).