Italy Imposes a 22% VAT on All Yachts from April 2020
Italy Imposes a 22% VAT on All Yachts from April 2020
There are big changes ahead for anyone planning to charter a yacht in Italy in 2020. As of April 1, the reduced VAT rate of 6.6% will be dead, with the regular rate of 22% applying to all yachts; whether you own it or are only chartering. Here’s everything you need to know.
What is the VAT?
The value added tax (VAT) is a consumption tax which applies to any products and services paid for during your stay. It applies to the price of your yacht charter, as well as the purchase of goods or services while on board. Your charter company will help you understand how much you can expect to pay, and which VAT laws will apply to your trip.
Which countries have VAT?
It is estimated that 140 countries around the world have a VAT rate. The VAT is most popular in the European Union (EU) with almost all countries in this area enforcing it. Outside of the EU it’s less popular however, some countries in Africa, the Americas, Asia and Oceania also enforce a VAT. Every country has a different percentage that they charge – ranging from 5% – 20% and higher.
Recent changes to the VAT in Italy
In December 2019, new laws were approved that changed the system for Italian VAT charges. They will come into effect on 1 April 2020. Previously, yachts larger than 24m were eligible for a reduction to their VAT from the standard 22% to a minor 6.6%. This reduced rate will no longer be available with all Italian charters now expected to pay the standard rate of 22%. The VAT is owed whether you begin your journey in Italian waters or start in another EU territory and then enter the region later.
Stay out of hot water with expert advice from Ahoy Club
The last thing you want to worry about is taxes on your holiday. With Ahoy Club, you won’t have to. We’ll take care of the all the little details and stay on top of important changes in the industry to make sure your holiday is as carefree as you’d expect. Ready for a break? Browse our 3,500+ charters and enquire to begin planning your next luxury getaway.
