VAT Management

VAT management

Where the Charter Fees are subjected to Italian VAT, the Owning Entity shall be registered for VAT in Italy and account for relevant VAT accordingly. When it comes the management and payment of VAT for commercial vessels chartering in Italian waters it is clear there needs to be a specialist in charge and now one such company has been formed to handle these complicated matters.

Revello & Partners (together with its Tax & Legal qualified partners) offers fiscal assistance and management of VAT payments to the Italian tax authorities for those foreign Owning Entities of vessels which aren't italian flagged and do not have a fiscal position in Italy, necessary condition in order to carry out charter activity in Italy. By agreement, our company (together with its Tax & Legal qualified Partners) will provide the following services to Owning Entities not resident in Italy (EU or non EU based):

  • Consulting VAT services (for EU based Owning Entities) or Tax Representative (for non EU based Owning Entities)  in Italy.
  • Assignement of the Italian VAT number.
  • Invoicing and recording of active operations.
  • Periodic liquidation and VAT quarterly payment.
  • Annual communication of VAT data.
  • Annual VAT return.
  • Annual payment on account of VAT.
  • Adjustment payment (if any).
  • Keeping and storage of registers and documents.
  • Presentation of Intrastat forms.

Consulting VAT services for EU Owning Entities

Our company can assist and work alongside all EU Owning Entities who intend to identify themselves directly in Italy for tax purposes, dealing with the obtainment of a national VAT registration number, as well as the fulfillment of all consequent requirements (issuing of invoices, accounting records, completing and sending of tax declarations and all other compliances required by law).

"VAT Fiscal Representative" for non-EU Entities

By agreement, our company (together with its Tax & Legal qualified partners) could be appointed as "VAT Fiscal Representative" by non-EU Owning Entities not resident in Italy. The purpose of this service is to fully represent the non-resident entity, not only ensuring full VAT compliance, but also guaranteeing the tax liability. We require a bank guarantee or monetary deposit to be made, its size dependent on the potential exposure. It would be expected that the amount would be no less than 5% of the company’s annual turnover (billings) in Italy, and could be 10% or more in some cases. The guarantee has to remain in place not only for the period of trading but also for example, for say three years after completion, in view of possible the legal right of retrospective recovery by the tax office. Because of its responsibilities, we must ensure that the VAT compliance is of the highest order. Non-EU companies who contract with us often find this difficult to understand. They are paying our fees and they have provided what can be a sizeable guarantee. Having done this, they find that they are being subjected to what appears to be over-pedantic administrative scrutiny from the Fiscal Representative. In some extreme cases, because of unease, it is not unknown for the Fiscal Representative to resign from the contract, if there is insufficient client co-operation in respect of compliance requirements.

Require us to send you (free of charges) our publication "Yachting & VAT in Italy" using this contact form