Ruling no. 394 examined the criteria for the correct application of VAT in a nautical leasing contract, stipulated in 2022, relating to a pleasure boat under construction, intended for use both in the EU and in non-EU waters. If the pleasure boat is intended for use both within and outside the EU, the user, in order to identify the quota of not subject to VAT, presents a (provisional) declaration indicating the percentage of navigation foreseen outside the EU, for each year of the leasing contract. The supplier may, therefore, issue the invoice under a partial or full tax exemption regime. This was recalled by the Revenue Agency with its response to ruling no. 394 of 29 July 2022.
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