It is not only Italy to stop subsidized VAT for nautical leasing. As of November 6, France will also abolish the 10% “flat” discount of the TVA (their VAT) for nautical leasing for those flying the white, blue and red flags.
It should be noted that, both in Italy and in France, those who have a leasing contract in place are not affected by this legislation. The existing conditions remain legal.
For those who have a nautical lease in progress, nothing changes
But rest assured those who intend to buy a boat, today the interest rates are so low that they compensate for the VAT discount guaranteed until yesterday by the Italian or French nautical leasing.
What the European Union says
How did this “mess” on subsidized VAT that led the European Commission to open a serious infringement procedure in 2019?
The European legislators argue that the determination of a flat-rate VAT reduction is absolutely arbitrary, taking for granted the principle that a boat sails for a certain period in extra-European waters and therefore is entitled to a reduction in the rate on the added value. . Logically, the principle is flawless!