Tag Archives: welfare

Clarifications on excise duty and VAT exemption on fuel in Italy

Sanremo, June 29th 2021

According to our guidances recently released, it is confirmed that the Italian Customs Authority (Agenzia Dogane Monopoli) has allowed the use of an exemption on excise duty fuel for charter vessels, according to its Provision N. 199336 from 28th May 2021 (please see below to download it).

According to this, the bunkering of duty free fuel in Italy is still possible.

Also yachts can benefit from the exemption of VAT too.

Please find below our comprehensive chart to find out if you have the necessary requisite to bunker in exemption of excise and VAT.

For any additional info please inquire us to info@yachtwelfare.it

INDICAZIONI DOGANE 28 MAGGIO 2021 DMUC_169336_2021_841Download
YW ITA VAT_Excise_Bunker_Chart_2021Download

Italy Cancels VAT Rise

Sanremo, 21st December 2017

 

ITALY CANCELS 2018 VAT RISE: VAT STAYS THE SAME

The Italian Council of Ministers has overturned plans and announced the country’s new financial measures for 2018. Italian value-added tax will not rise in 2018, although it is scheduled to increase in 2019 and 2020 asper below listed:

10% VAT will go up by 1.5% in January 2019 and a further 1.5% in 2020.
22% VAT will increase by 2.2% in 2019 and by an additional 0.7% in 2020 and another 0.1% in 2021.
Excise Tax will also go up in 2019.

Any question can be sent to info@yachtwelfare.it.

Monaco – Italy Tax Agreement

In early April 2017 an important taxation agreement between Monaco and Italy came into force and, as a direct result, Monaco now appears on the Italian ‘white list’ of tax compliant jurisdictions. The Agreement gives rise both to opportunities and challenges for those individuals who fall within its scope.
In March 2015, Monaco and Italy concluded the terms of the Agreement for the exchange of tax information between the two jurisdictions. However, it was not until earlier this month the Agreement completed the formal ratification process by the competent authorities in both Italy and Monaco.
With ratification the Italian authorities can request their Monaco counterparts to provide information on individuals who are Italian tax resident and who hold assets in the Principality. Furthermore, both states have the possibility for their respective tax authorities to conduct a tax audit in the counterpart state.
The Agreement also seeks to avoid the double taxation of income and also defines the concept of ‘tax residence’ in the two states.
The Agreement is an important change for those individuals who are tax residents in Italy and Monaco with economic interests in the other jurisdiction.
The Agreement should be seen in the context of the introduction of automatic exchange of information on financial accounts which came into effect on 1 April 2017 between Monaco and the European Union, including Italy. For more info please do not hesitate to contact us writing an email to info@yachtwelfare.it.

Withhold Tax 33% in France

Withholding tax on charter revenues: has this battle been definitively won? As you may have heard MYBA and ECPY members have recently been subjected to French tax inspections in their capacity as Stakeholders. In compliance with Article 182B of the French General Tax Code, French Fiscal Authorities wanted to apply a 33% withholding tax on charter funds held by Stakeholders based in France, in relation to the commercialactivity (charters) made into the French territory and territorial waters. The withholding would apply when charter funds were transferred to Owning Companies or Yacht Owners which did not have a permanent professional establishment (business) in France and were based in jurisdiction which did not have a double tax treaty with France.
MYBA and ECPY decided to seek the official position of the tax authorities at the ‘Direction de la Législation Fiscale (DLF) in Paris. They asserted that Stakeholders are only intermediaries of on charter revenues realised in France and not the debtors.
The first reply was unfavourable but MYBA and ECPY lodged an appeal for a second interpretation by the National College. The DLF has now replied favourably, indicating that “the Stakeholder is not liable to pay the withholding tax provided for under Article 182 B of the General Tax Code”.
This is of course a great success but this is only the first stage, as now MYBA and ECPY need to ensure that this national decision is implemented at local level for the ongoing cases.
But when the battle is won at local levels are the tax authorities going to accept defeat or are they going to try to find a new debtor?
There’s still plenty of grey areas around this … stay tuned, we will release up-to-date news as soon as possible.

For any additional info or questions needed please email us to info@yachtwelfare.it.
We are always at your disposal.

Temporary Admission in Spain

The temporary admission procedure laid down in article 250 of the Union Customs Code – Regulation (EU) No 952/2013, which came into force on 1 May 2016, allows non-Union goods intended for re-export to be subject to specific use in the customs territory of the Union, with total or partial relief from import duty. This procedure enables non-EU registered yachts to stay within the EU with total relief from import VAT and move freely within its territorial waters with no further customs formalities for a period of 18 months.

The relevant change compared with the existing previous situation laid down in the Community Customs Code 2913/92 and Commission Regulation 2454/93 is that it is now required for yachts arriving at an EU Port coming from an Non-EU Port to submit an oral customs declaration in accordance with article 165 of Commission Delegated Regulation 2015/2446.

There are different approaches to the situation in different Mediterranean countries, as this formality is not strictly enforced everywhere and other countries, in addition to the submission of the oral declaration, require the provision of a guarantee. Here we will provide an overview on how the process works strictly in Spain.

When an application for TA is made orally, the declarant shall submit a document as referred to in Annex 71-01 containing the following information:

• name and address of the declarant;
• description of the goods, their value and quantity;
• place of use and kind of use of the goods and means of identifying them;
• period for discharge;
• customs office(s) of discharge.

Together with Annex 71-01, the following supporting documents shall be submitted:

• Yacht’s certificate of registry;
• Passport of the yacht owner;
• Yachts owned under corporations: deed of incorporation, certificate of incumbency and passport of the company director.

When the temporary import takes place in Spain, the customs authorities will not require the provision of any security or guarantee. If the customs authorities are not satisfied that the particulars declared orally are accurate or complete, the oral declaration might be refused.
Please find below some particularities of the most relevant yacht destinations in Spain.

Palma de Mallorca – first port of arrival must be the customs port of Palma. Once the paperwork has been reviewed, the yacht can head to any other port in Mallorca. In Mallorca it is required to provide either original supporting documents or verified by a Spanish public body.

Ibiza – there is no need of arrival to a customs port. The yacht can arrive to any port and submit the declaration online to the local customs office, using the system in place in the website of the Spanish tax agency.

Barcelona – there is no need of arrival to a customs port. The yacht can arrive to any port. Photocopies of the relevant documents are usually accepted.

Although customs does not expect the submission of an export declaration to close the temporary import, evidence of having visited a non EU port will be requested in order to renew the 18-month period.

For any further information, please email us to info@yachtwelfare.it or directly contact our Spanish referent Mr. Alex Chumillas, Director or Tax Marine emailing alex@taxmarine.com.

How to Invoice APA Subject to VAT

Sanremo, 1st July 2016

Given the new ruling by MYBA in regards to the APA (for more info see also here www.yachtwelfare.it/clarifications-on-apa-june-2016) the VAT collected on the expenses to meet navigation requirements, such as fuel and oil for the engines and on-board systems, needs to be remitted to the Italian Revenue Office along with the VAT collected on the Charter Fee.
To that end the amount of VAT raised by such expenses is to be immediately wired to Yacht Welfare at the end of the charter.

Yacht Welfare, on behalf of the yacht’s owner, will issue a separate invoice for APA which is required to regulate the hereinbefore mentioned operations.
For this reason there is undoubtedly a need to receive the APA report, duly fulfilled by the yacht’s Captain and countersigned by the Charterer, within the shortest time right after the disembarkation of the charter.

For the sake of clarity Yacht Welfare hereby informs all its Clients that penalties and delay fees will always apply for any late remittance of VAT raised by the expenses paid with APA.

For any additional info please email us to info@yachtwelfare.it

Download the full notice here YW_News_03_2016