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BREAKING: Application for VAT reduction on Mediterranean yacht charters set to undergo major changes for 2020

Industry news

By Katia Damborsky  2 December 2019

According to a report published by the European Committee for Professional Yachting, VAT reductions 'would no longer be applicable in 2020'.

The following excerpt has been taken from an update published by the European Committee for Professional Yachting (ECPY).

On Nov. 29th, the President of ECPY met with the administration of the Directorate of Tax Legislation - DLF.

The DLF officers informed ECPY that the application of the VAT reduction on charters as practiced in Italy, France, Malta, Cyprus and Croatia would no longer be applicable for the 2020 season (i.e. just cruising into international waters and obtaining a VAT reduction).

In 2020 the only possible reductions will be pro rata reductions for cruising outside European waters (i.e. time spent/or distance in international waters, at this stage we do not know).

The application of the VAT reduction on charters as practiced in Italy, France, Malta, Cyprus and Croatia would no longer be applicable for the 2020 season (i.e. just cruising into international waters and obtaining a VAT reduction).

European Committee for Professional Yachting (ECPY)

The European Commission has asked the above-mentioned countries to modify their practices in order to apply the principle of ratio from January 1st, 2020. It is expected that the implementation of the new rules on VAT reductions will be applied under the same terms and at the same time in the different countries.

ECPY has requested that the new rules applicable in 2020 should be known as soon as possible and before the end of 2019. Several points remain to be clarified to date, ECPY is taking part in the negotiations that will take place during the month of December.

The objective is to obtain identical rules in all European countries and for these rules to be applied concurrently. ECPY will keep its members informed of the rules that will have been adopted.

This is a breaking news story. YachtCharterFleet will be publishing up-to-date information as we get it.


 
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