Intra-Community Supply Of Yachts, Components And Accessories

The current tax reform and, in particular, the reform of the administrative penalty regime, has introduced a new provision that has a substantial impact on VAT both in terms of the application of the tax and, even more so, in the procedures implemented by Italian companies with reference to the intra-Community supply of goods.

More specifically, Article 2 of Legislative Decree No. 87/2024 amended Article 7 of Legislative Decree No. 471/1997, introducing a provision on the basis of which anyone who makes an intra-Community supply of goods without charging tax is punished with an administrative penalty of 50% of the VAT ‘if the goods are transported to another Member State by the purchaser or by a third party on his behalf and the goods are not received in that State within ninety days of delivery. The penalty referred to in the preceding periods shall not apply if, within the following thirty days, the tax is paid, after regularisation of the invoice’. The new legislation applies from infringements committed after 1 September 2024, thus not affecting the conduct previously held.

This sanctioning provision therefore indirectly introduces an obligation for goods to enter the EU territory of destination within 90 days of delivery by the seller to the purchaser, with an obvious impact on all companies operating in the nautical sector and, therefore, not only those selling yachts but also all those selling various types of components and nautical accessories.

An example may help to better understand the consequences of the new legislation under discussion here. Under the previous regime, if a Spanish charter company had docked in an Italian port and purchased a water toy from a local seller, the latter would issue a non-taxable invoice for VAT purposes for an intra-Community supply, agreeing with the purchaser the documentation that the latter would have to provide to prove the entry of the goods into the Community territory of destination (in the hypothesis, precisely, Spain), without any obligation to return to Spain within a certain time limit. Following the amendment of the penalty provision, to the ordinary obligations of the persons concerned by the non-taxable for VAT purposes of the intra-Community supply, is added the fact that within 90 days of the delivery of the water toy to the purchaser, this good must enter the Community territory of destination. In practice, this circumstance is not at all taken for granted because, for example, the yacht intended for chartering in the Mediterranean could sail for more than 90 days before returning to a Spanish port, thus exposing the seller - unaware of any dynamics concerning the yacht's movements - to the risk of being fined 50% of the VAT that should have been applied to the invoice issued to the purchaser, in addition to the payment of the VAT itself in respect of which, under certain conditions, he could still consider claiming it back from the purchaser.

In view of this circumstance, it is appropriate for resident enterprises that carry out intra-Community supplies of goods with delivery in Italy of the same to the purchaser, to acquire - together with the other obligations on the part of the purchaser - an undertaking from the latter to introduce the goods into the EU Country of destination within 90 days from the delivery.