Boating declaration in Italy: all about Italian tax regulations and tax obligations for non-resident foreigners. Find out everything by reading this article.
Boating declaration in Italy: what is the boating declaration for non-resident foreigners?
As of 9 January 2024, non-residents without a fiscal representative or direct identification in Italy must submit the nautical declaration for the purposes of VAT non-taxability.
But what is the boating declaration?
The boating declaration for non-resident foreigners certifies that they possess the requisites to benefit from the non-taxability of VAT on services of leasing, including financial leasing, hiring and similar services, not on a short-term basis, of pleasure boats and navigation on the high seas.
This declaration must be submitted - as the case may be - directly by the principal, the owner of the vessel, the master or the person who has the actual management responsibility for the vessel or, on their behalf, by a delegated intermediary.
Following the submission of the declaration, a telematic receipt will be issued indicating the reception protocol number, which constitutes proof of submission.
Boating declaration in Italy: indications from the Revenue Agency
With **Resolution 2/E of 9 January 2024**, the Italian Revenue Agency has introduced clarifications and specific guidelines on new tax and declaration obligations for foreigners who own or operate boats on Italian territory.
The Resolution specifies the following aspects:
- Scope: all non-Italian residents holding boats on Italian territory for a certain period must submit a tax declaration.
- Declaration modalities: the declaration must be submitted exclusively through the telematic channels made available by the Revenue Agency. This ensures greater traceability and security of information.
- Documentation required: foreign subjects must provide evidence of the ownership of the boat, the period of stay in Italy and the use of the boat, in order to prove compliance with the provisions.
Boating declaration in Italy: tax consequences for non-resident foreigners
Filing a boating declaration in Italy has a number of tax implications for foreign boat owners. The main tax aspects to be considered include:
1. VAT on the use of the boat: if the boat is used for commercial purposes or is available for hire in Italy, it may be subject to Italian VAT, regardless of the nationality of the owner.
2. Possession tax and local fees: foreign parties may be subject to a possession tax on the vessel, applicable depending on the type and length of the vessel.
3. Short-term rental tax: if the boat is rented out for short periods, the relevant taxes must be paid.
4. Exemptions in special cases: the Resolution grants certain foreign owners of boats for exclusively personal and private use exemption from paying certain taxes, provided that they comply with the declaration obligations.
Boating declaration in Italy: penalties for non-compliance
Failure to comply with the obligations set out in Resolution 2/E may result in significant financial penalties. The Revenue Agency, in fact, has wide powers of assessment on tax fulfilments carried out by foreign subjects and, through cross-checks and exchange of information, is easily able to ascertain omitted, incomplete or even inaccurate declarations.
The tax assessment by the Revenue Agency can, in the most serious cases, also lead to the seizure of the vessel.
Boating declaration in Italy: how can we help you?
As we have seen, for foreigners who own boats in Italy, it is essential to know the regulatory requirements and Italian tax laws that impose certain obligations on them.
With this in mind, having an International law firm in Italy at your side is essential in order to avoid unpleasant surprises, such as having your boat seized.
The law firm Arnone&Sicomo has an in-house department of international tax experts who, in team with lawyers from the tax law department, assist foreign clients, who own boats in Italy, in fulfilling their tax and fiscal obligations.
Given the complexity of Italian tax regulations, the advice of an expert in international tax and fiscal law can greatly simplify the handling of nautical declarations and related obligations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
