Italian Tax Authority defines means of proof to confirm navigation in extra-EU territory for short and long -term contracts

Italian Tax Authority defines what are the means of proof to confirm navigation in extra-EU territory for short and long -term contracts (CHARTER and LEASING).

Provision no. 341339/2020 issued by the Italian Tax Authority (AGENZIA DELLE ENTRATE) on October 29th, clarifies the means of proof necessary to prove the effective use of the vessel outside the Union territory in order to apply 22% Italian VAT on long and short term contract executed from November 1st and onward.

With regards to Charter contracts (short-term) the following proofs - that need to be kept on file for 6 years - are required:

FOR VESSELS EQUIPPED WITH SATELLITE NAVIGATION SYSTEM OR TRANSPONDER LIKE FOR EXAMPLE AIS:

• Travel cartography, data and information extracted from satellite navigation systems or transponders (ex.: AIS)

FOR VESSELS NOT EQUIPPED WITH SATELLITE NAVIGATION SYSTEM OR TRANSPONDER:

• Copy of the contract.

And two additional proofs chosen from the following:

• paper or digital data of the logbook/official cruising journal.

• at least two digital photos of the ship points for every week of cruising.

• invoices/receipts/contracts and related proofs of payment for purchases made outside the EU territory.

• invoices/contracts/ receipts and relevant payment for berthing made outside the EU territory.

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DISCLAIMER | The information provided in this text is for general information purposes only and doesn’t replace the advice of a legal advisor or of a tax consultant.