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COVID 19 update from 1-800 Yacht Charters. In specific, Italian tax authorities have postponed new laws designed to increase VAT on Italian yacht charter vacations. The postponement appears to be in response to the effect of Covid-19 on tourism.
Fortunately, private yacht charter vacations remain exempt from the tax increase until November. Accordingly, 1-800 Yacht Charters will continue to Deliver the Superyacht Experience™ to their clients at a lower-than-expected tax rate.
Tax increases were first announced in December 2019. The conversion of Law Decree n. 124/2019 (by Law n.157/2019) and the 2020 Italian Budget Law (Law n. 160/2019) enact new value-added tax (VAT) measures. The law set the VAT rate at 22% for Italian luxury yacht charter vacations. That law is postponed until November 1, 2020. The old rates will remain in place. VAT is set at 6.6% for yachts over 24 meters. VAT is set at 8.8% for yachts under 24 meters.
In other words, private yacht charter vessels and crews can still welcome-aboard guests in Italy at a favorable VAT rate below 10%. The Superyacht Experience™ will continue this summer. Tourism in Italy suffers from Covid-19 shortfalls. Italian authorities are hopeful favorable VAT rates will stimulate tourism. New (higher) VAT regulations will be in effect after November 1st, 2020.
Italian VAT applies to all charters embarking in Italy. Special limitations apply to yachts registered in Italy. Government fiscal agents require an appropriate amount of cruising to qualify for the reduced VAT. For example, at least one crossing from Corsica or Sardinia to mainland France or Italy qualify for the reduced rate.
Italian-flagged yachts are not subject to this limitation. Specifically, no long-distance crossing requirements exist.
In conclusion, certain Covid-19 protocols remain in place. Requirements include masks in public areas. In addition, no Covid-19 test requirement exists, although quarantine requirements may exist for some origins. For example, public transportation is operating, and restaurants are open.
Our team stays on top of all Covid-19 updated information. For instance, we provide a list of available yachts and “summer saver discounts.” Call our team at 1-800 Yacht Charters at 305-720-7245 for immediate response.
Important to note, travelers from the USA face possible travel restrictions to Italy. Don’t let this stop you. You can still enjoy The Superyacht Experience™. Stay safe, and remain closer to home this summer. We’d love to plan a yacht charter vacation for you like this one!
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