EU acts against luxury amid Italy yacht “Apocalypses”

Italy along with the Isle of Man received the criticism of the European Commission, taking steps to force them to scrap illegal tax breaks for yachts and private jets or face a lawsuit in European court.

We have stepped up our agenda to tackle #taxavoidance in the yacht and aircraft sectors by implementing infringement proceedings on tax breaks being applied in the pleasure craft industries of Italy and the Isle of Man.https://t.co/HPJxCvSv67 pic.twitter.com/GEsh3G8Hta

— EU Tax & Customs 🇪🇺 (@EU_Taxud) November 8, 2018

The Berlaymont said incorrect value added taxes levied by Italy and the Isle of Man breached common tax rules and distorted competition.

The Commission clarified that it had sent a letter of formal notice, which is the first step in its infringement proceedings, to Italy for not levying the correct amount of VAT on the leasing of yachts.

Get rich, buy a yacht…they saidhttps://t.co/SpvM8TCBsd

— How To Trade 🇿🇦 (@how_to_trade_sa) November 4, 2018

It also warned Italy about its system of exemptions for fuel used to power charted yachts in EU waters, in a notice called a “reasoned opinion“. In case of non-alignment with the EU rules, the court action will follow in due time.

At present yacht owners in some harbors of Italy suffer damages as a result of intense storms. Italian news agency #ANSA said 180 yachts were destroyed in the by waves, including many superyachts, and one boat belonging to former Prime Minister Silvio Berlusconi.

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