The French Tax Authorities have published a new tax bulletin on 6 November 2020, with retroactive effect from 1 November, which affects the way VAT on short term charters is calculated depending on time spent within/outside EU waters. Read more
Second income tax installments regulation in Cyprus
In accordance with the Cyprus Income Tax legislation, a Cyprus company and/or an individual person who is tax resident in Cyprus, has to pay its second income tax installment (provisional tax) by 31 December 2018 to the Department of Tax. Such amount is payable only via the website of JCC (www.jccsmart.com). Read more
The Netherlands – Proposed changes in indirect tax law for 2019
On Budget Day, the Dutch government introduced the 2019 Tax Plan to the House of Representatives. Most recently, the House of Representatives adopted the bills included in the 2019 Tax Plan package. Below, please find the highlights of said package, briefly outlining some of the VAT and consumption tax measures (indirect taxes) that may impact international businesses. Read more
VAT and customs, Germany
Federal Court of Finance (BFH) simplifies input tax deduction of invoices for companies
The Federal Court of Finance abandoned its previous jurisdiction with judgements from 21 June 2018 VR25/15 and VR28/16 and decided that it is no longer necessary for invoices to state a place where the entrepreneur carries out his business activity. Therefore, for input tax deduction, an invoice must only include an address where the company providing the service can be contacted by post. Read more
Recent changes in the Austrian VAT rates
Since November 1st 2018 the Austrian VAT rate for hotel accommodation and other furnished living and sleeping areas for rent including associated services is reduced from 13 percent to 10 percent. This also includes breakfast in the local fashion if it is included in the accommodation price. Read more
Electronic invoicing in Italy
We remind you that on 1st January 2019 the electronic invoicing obligation will start for all operations between residents or established subjects.
“Electronic” means invoice issued or received in any electronic format, which makes the document unalterable. Read more
French authorities introduce VAT on yacht charters
According to French tax guidelines dated 25 June 2013, contracts relating to yacht charters commencing in French waters for the purposes of leisure travel and signed from 15 July 2013 are subject to VAT as per the rules defined for pleasure vessels. In compliance with the ECJ Bacino ruling, the exemption no longer applies to hiring and charter operations for leisure use, either with or without a professional crew, including operating on the high seas.
The applicable VAT rate is 19,60 %, however the taxable base can be reduced by 50 % where the yacht is also used outside EU or French waters.
Consequently yacht owning companies established outside Europe need to appoint a tax representative who will perform the formalities related to VAT registration in France, the submission of tax returns and making of VAT payments. The other yacht owning companies may also appoint a tax agent who will perform the same VAT formalities.
La Représentation Fiscale, the first ever tax representation company in France has created Yacht Tax Services, a dedicated French tax representation company providing services to yacht owning companies incorporated outside France.