News
Discover all our latest news
BACK
Despite the end of the VAT lump sum reduction on French and Italian charter contracts, the French Commercial Exemption (FCE) and the Italian Commercial Exemption (ICE) are still into effect and conditions do not change. The end of the VAT lump sum reduction in both countries, will directly affect the charterer who pays VAT to the owning company. However, the FCE and the ICE that benefit the owning companies (not to the charterers) are still in place if the following requirements are respected: • The yacht is over 15mt long • The yacht has a permanent crew on board • The yacht is commercially registered • The yacht has a commercial activity: no private use • During each calendar year: • 70% of cruising trips must be outside French waters for the compliancy to the FCE • more than 70% of cruising trips must be International for the compliancy to the ICE The last condition is not affected by the change of regulation. The 70% calculation remains the same both in Italy and France and we underline that for the FCE, the time is not to be considered. ----
Feel free to contact us at info@thewoy.com or by phone +33 (0)4 92 00 42 40 for any further information
End of VAT lump sum reduction for charter
Tuesday 18 February 2020
Despite the end of the VAT lump sum reduction on French and Italian charter contracts, the French Commercial Exemption (FCE) and the Italian Commercial Exemption (ICE) are still into effect and conditions do not change. The end of the VAT lump sum reduction in both countries, will directly affect the charterer who pays VAT to the owning company. However, the FCE and the ICE that benefit the owning companies (not to the charterers) are still in place if the following requirements are respected: • The yacht is over 15mt long • The yacht has a permanent crew on board • The yacht is commercially registered • The yacht has a commercial activity: no private use • During each calendar year: • 70% of cruising trips must be outside French waters for the compliancy to the FCE • more than 70% of cruising trips must be International for the compliancy to the ICE The last condition is not affected by the change of regulation. The 70% calculation remains the same both in Italy and France and we underline that for the FCE, the time is not to be considered. ----Feel free to contact us at info@thewoy.com or by phone +33 (0)4 92 00 42 40 for any further information
