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Italy: EU Commission takes steps to end illegal tax breaks
Excise exemption on fuel in the crosshairs
In a press release issued on July 25, 2019, the EU Commission confirmed it will refer Italy to the EU Court of Justice for its failure to address illegal exemptions from excise duty on fuel.
Under EU excise duty rules fuel used by navigation companies for commercial purposes isn’t taxed. However, Italy allows chartered pleasure yachts to qualify as 'commercial' even if they are used for personal purposes (as most charters are) rather than commercial operations. This enables the yachts to benefit illegally from the fuel exemption.
France was faced with the same situation a couple of years ago and excise duty became applicable of bunkering.
We are monitoring the situation and will keep you posted as to developments and how it might affect bunkering in Italy.
Under EU excise duty rules fuel used by navigation companies for commercial purposes isn’t taxed. However, Italy allows chartered pleasure yachts to qualify as 'commercial' even if they are used for personal purposes (as most charters are) rather than commercial operations. This enables the yachts to benefit illegally from the fuel exemption.
France was faced with the same situation a couple of years ago and excise duty became applicable of bunkering.
We are monitoring the situation and will keep you posted as to developments and how it might affect bunkering in Italy.
