France Cancels Plans to End Flat-rate VAT Reduction System

Amendments proposed to end the French flat-rate VAT reduction system, on all charter contracts concluded after March 30th 2020, have been withdrawn in the wake of COVID-19.

The announcement was formalized in a new BOFIP (Bulletin Officiel des Finances Publiques – Impots) published on 30/03/2020.

 

This is good news for charterers, who will continue to benefit from the flat-rate 50% reduction they had previously enjoyed on the full French VAT rate of 20%, subject to the yacht being partly used in international waters.

 

The decision is linked to the new economic context created by the ongoing COVID-19 health crisis.

 

Superyacht News reports that, according to SOS Yachting, UCINA Confindustria Nautica (Italian Marine Industry Association) is in dialogue with the Italian authorities to postpone the application of the new VAT laws in Italy.*

 

To find out more about chartering in France and Monaco, contact your Fraser Charter Broker.

 

*SOURCE: Superyacht News