South Shore Road
The Italian Tax Authority has issued a resolution to their current 6.6% VAT (when cruising in International Waters) and is set to increase to 22% on the 1st of November for all charters.
The “old” lump sum VAT scheme (6.6% for yachts over 24 meters) will now remain applicable on charter contracts EXECUTED/SIGNED before 1st November 2020, regardless of the dates of the charter period.
This VAT rule applies to all yacht charters starting in Italian waters, including those in the Mediterranean, Adriatic and Sardinia etc.
If you book 30m Lady Amanda now for low season 2021 charter, the finances would be:
Charter Rate: €43,000
6.6% VAT*: €2,828
30% APA: €12,900
Payment terms would be:
25% of the charter rate upon contract signature: €10,750
25% of the charter rate in February 2021: €10,750
50% of the charter rate, plus the APA and VAT one month before the charter starts: €37,228
*VAT saving is €6,622 by booking during October 2020!