France and Italy introduce new VAT Rules and there will be no reduced VAT.
There were two major changes to the French VAT laws that took effect on March 31st, 2020.
The first change was that the lump sum reduction was canceled, and the second change was that all yachts became liable for the full rate of 20% from March 31st, 2020.
As of 2023, the VAT laws in France have not changed and the full rate of 20% for yachts still applies.
In December 2019, changes were made to the Italian VAT laws that took effect on April 1st, 2020.
Prior to these changes, yachts larger than 24m were eligible for a reduction in VAT from 22% to 6.6%.
However, after these changes took effect, this reduced VAT rate was no longer available for all Italian charters, whether the charter began in Italy or in another EU territory and entered the region later.
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By C. Burak KOREL
