We are now including FLYN tracking services for all commercial operations; charter and transport taxable in France and Italy
SOS Yachting is now including the FLYN tracking system in our charter contract processing fees (which will remain unchanged) for taxable commercial operations (charter in Italy and France / transport in France).
FLYN-Yachting relies on the positional information provided by the yacht’s AIS, which is irrefutable data accepted by national authorities. The tracking system follows the yacht from the beginning to the end of the commercial operation period and calculates the time (needed for a charter agreement) and the distances (needed for a French transport contract) spent in the fiscal territory (EU) where VAT is applicable, and the time and the distances spent outside the fiscal territory where VAT is not applicable. It therefore reduces the VAT due resulting from the time spent by the vessel in international waters and/or non-EU territories.
At the end of each commercial operation starting from either France or Italy, the owning company will receive an automatic report showing:
• the calculation of the taxable base, the applicable VAT due, the list of the yacht’s location outside the EU territorial waters as well as cruising data extracted from the AIS.
In addition, for the French charter/transport contracts, the report will also contain:
• the calculation of the number of trips including the qualified trips related to the 70% ratio to know if the vessel is compliant with the French Commercial Exemption.
This report, besides precisely establishing the VAT due and the fiscal status of the yacht to calculate the French 70% rule, can be presented to the tax authorities in case of an inspection or tax audit.
In Italy, authorities can inspect documents dating back 6 years; in France, it’s 4 years.
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.
