The European Commission today announced that it will send letters of formal notice to Cyprus, Greece, and Malta for not levying the correct amount of value added tax (VAT) on the provision of yachts.
As noted in today’s EC release, the “Paradise Papers” revealed widespread VAT evasion in the yacht sector, facilitated by national rules that do not comply with EU law. In addition to the launch of today’s infringement procedures, the European Parliament indicated that a new committee will also look at this issue.
The infringement procedures concern:
These three EU Member States now have two months to respond, and if they do not, the EC may send a “reasoned opinion” to their authorities.
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