Chartering in the Italian seas always arouses great interest both for the beauty and importance of our coasts and for the high professionalism of the operators offering these services
by Berardo Lanci*
The performance of charter services by operators in the sector also entails paying close attention to specific issues concerning taxation and potential controls by tax authorities. Controls, which, it is obvious to all, are intensified in the summer months, are also increased by the boarding of yachts and access to them by the authorities of the tax administration.
Firstly, it should be clarified in this regard that charter activity may be performed through the use of yachts, regardless of their flag, which does not affect the tax regime for the purchase of the yacht or the related charter activity. The only caveat regarding the foreign flag relates to the obligation of the entity interested in carrying out this activity in Italian waters to submit the relevant application to the competent maritime authority. Once endorsed by the maritime authority, a stamped copy of the application must be kept on board and made available for inspection at any time.
VAT in Italy is not due in cases where the charter begins in an EU country
If the yacht is non-EU, it is necessary to access the temporary admission regime, with the typical peculiarities of the regime applicable to yachts intended for commercial activities. This is without prejudice, however, to the obligation of definitive importation if the yacht in question is used exclusively for charter activities in Italian waters. Attention to the observance of these rules is of considerable importance, given that their violation exposes not only the risk of payment of taxes and penalties but also to the risk of violating criminal rules on smuggling.
The controls of the tax authorities about nautical charters focus more on the correct application of VAT, with particular reference to that due by non-EU subjects, the regime of temporary admission of the yacht, and any distortions connected with the charter activity carried out in favour of the UBO.
The subject of control is then how VAT is applied in Italy, along with the related obligations. Referring to the more detailed analyses carried out in previous articles on the subject, it is recalled that in most cases, VAT is due in Italy when the charter begins in Italy or when it begins outside the EU, but the service is partly carried out in Italian waters. In these cases, the foreign entity is required to obtain an Italian VAT number to apply VAT and, if it is not an EU entity, must also provide a guarantee for the correct payment of VAT. In the event of a tax authority control, it is therefore necessary to be able to prove both the place of departure of the charter (for example, using the charter contract and the documentation of the port of departure) and the correct application of Italian VAT, as mentioned above.
Several hypotheses contest the fictitious interposition
of the charter company.
A further point to consider regarding nautical charters is the attention that the authorities of the financial administration pay to analysing possible distortions associated with the use of the yacht by the natural person who is the de facto owner of the yacht itself (UBO). Indeed, several hypotheses contest the fictitious interposition of the charter company. This entails the disallowance of all the tax advantages connected with the purchase of the yacht by the charter company compared to what would have happened if the yacht had been purchased directly by the UBO (such as, for example, the non-deductibility of the VAT applied to the purchase or maintenance of the yacht). In this regard, both practice and jurisprudence have established principles that are useful in determining whether a hypothesis of interposition can be found, and among these are the following: (i) the charter company must be able to prove that it is actually carrying out an economic activity aimed at the public, and thus, for example, have several clients unrelated to the UBO and in any case have made several quotations to several clients, at least potential ones, and carry out promotion, advertising and marketing activities (ii) any charter services provided to the UBO, in addition to not being exclusive, must not be prevalent concerning those provided to third parties; and in this regard, it should be noted that prevalence may be measured both in terms of days of use of the yacht and in terms of revenue generated by such charter activity; (iii) the price charged to the UBO must be market price and in any event in line with that charged to other clients.
About the aspects highlighted above and given the peculiarities of the taxation regime of the yachting world in general and of the charter activity in particular, it is recommended that operators rely on the specialisation of professionals in the sector and, in any case, take care with the utmost detail of every aspect of the different taxation regimes involved.
(Charter taxation – Barchemagazine.com – Excerpted from Barche, September 2025)
