A decree, issued 15 June 2020, implements the rules concerning the value added tax (VAT) treatment of business-to-consumer (B2C) short-term hires and leases of pleasure boats and yachts.
The Budget Law for 2020 provided that, effective 1 April 2020, the place of supply for B2C short-term hiring or leasing of pleasure boats and yachts is deemed to be outside the EU (and thus outside the scope of Italian VAT) if there is adequate proof of the use outside the EU. The measure was introduced to address an infringement procedure initiated in 2019 by the European Commission, in relation to the flat-rate method used by Italy to determine the percentage of use outside the EU.
Craft’s use outside EU
The implementing decree (15 June 2020) provides guidance on what constitutes appropriate proof of use of pleasure boats and yachts outside the EU.
The new rules apply to all B2C short-term lease contracts entered into from 15 June 2020.
Read a June 2020 report [PDF 145 KB] prepared by the KPMG member firm in Italy
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