Dual Use for Private Yachts in Italy
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Italy has introduced in 2014 the option to charter a "private yacht" on an occasional basis avoiding the commercial registration.
Owners no willing to operate their yachts on a fully commercial basis can adopt this solution, which permits them to use the yacht on a private basis, whilst offering the possibility to charter the yacht out to third parties for a maximum period of 42 days a year to minimise annual running costs without complying with the mandatory (and expensive) standards for "yachts in commercial use".
The requirements to be observed
- The yacht must be registered in Italy for "private use".
- The yacht must have a length greater than 10 meters.
- Each "time charter agreement" must be evidenced in writing, using a standard form officially recognized (e.g. ISYBA-YOCC).
- The Owner, before the start of each charter period, must send via mail to the Italian Authorities a notice that lists the details of each contract (eg: Charterer's details, charter period, port of delivery / redelivery, charter fees, crew list and so on)
- The "port of delivery" must be in Italian territory (the cruising area may extend beyond the territorial waters Italian).
- The payment of the Charter Fees must be made by bank transfer or by check.
- At the end of the calendar year the Owner must pay a "Flat Tax" of 20% calculated on the total Charter Fees earned.
- During the charter period the Owner may be on board as "Captain" (provided they possess a "boat license").
- The Captain (if this function is not performed by the Owner) and the other crew members (e.g.: deck-hand, hostess and so on) are enrolled by the Owner and are paid by the Italian system of "Vouchers".
Additional notes
For VAT purposes, a taxable person is any individual, partnership, company or whatever which supplies taxable goods and services in the course of business.
- It is not allowed the use of "Detaxed Fuel".
- It is not allowed to use the system "VAT Exempt" on repairs, purchase of equipment and spare parts, supplies in generals.
- The Owner can not advertise directly its proposals, but have to entrust that task to a Licensed Broker in Italy (say "Mediatore Marittimo"), not to a simple "Foreign Agent".
- And much more ....
To learn more and to fully assess whether that possibility may be interesting you or not, contact us here: