In general, issues relating to VAT management, including procedures for recovering VAT credits, are of great importance to all businesses. A frequent issue arises in relation to how foreign entities with a permanent establishment in Italy can request a VAT credit refund. In the yachting world, this issue may concern in particular – but not exclusively, of course – foreign charter companies that operate from their parent company but which, in addition, have deemed it appropriate for organisational reasons to open a permanent establishment in Italy.

In its Answer No. 10 of 15 July 2025, the Italian Revenue Agency clarified a doubt that had arisen regarding the obligation for shipowners who are individuals acting outside the scope of a business, art or profession to act as withholding tax agents. The issue was raised with particular reference to cases where the shipowner is at the head of an organised structure such that it could be presumed to have typical professional skills of a withholding tax agent in relation to his employees. 

We have already addressed the issue of VAT treatment of leasing contracts entered into by private shipowners (so-called B2C transactions) on several times. The relevant legislation, which regulates non-short-term leasing contracts for yachts to private individuals in general, is contained in Article 7-sexies, paragraph 1, letter e-bis) of Presidential Decree No. 633/1972, and in Revenue Agency Provisions No. 341339/2020 and No. 151377/2021.

Chartering in the Italian seas always arouses great interest both for the beauty and importance of our coasts and for the highly professionalism of the operators offering these services. 

Italy is certainly one of the most attractive destinations for what is known as nautical tourism, and there are several tax implications associated with the performance of nautical charter activities by nautical charter operators.

The issuing of Circular No. 8 of 10 April 2025 by the Italian Custom Agency provided an opportunity to review the clarifications issued by the financial administration on the subject of the temporary admission of yachts for private use and to summarise the main rules representing this regime.