Italy set to introduce 5% VAT rate over maritime public-transport services
A 5% VAT rate will be applied in Italy on all of the urban public-transport services which are carried on by maritime, lacustrine, fluvial or lagoon transport means. The new tax has been introduced by an amendment which the Budget Committee of the Italian House of Representatives added to the draft of the 2017 Budget Law. On November 28th, the House voted in favour of the whole draft, subsequently passed on to the Senate for definitive approval.
The new regulation will modify Article 10.1.14 of Presidential Decree 633/1972. If the Senate approves the draft without any interventions on the matter, Italy will rule out the VAT exemption currently benefiting all of the public-transport services which are carried on by means allowed to maritime transport over routes within 50 kilometres. Due to the above-mentioned amendment, any kind of public-transport services performed via sea, lake or river are therefore going to be subject to VAT, provided that they fall into the set of “urban public-transport services”, i.e. that they are put into effect within the same municipality or between two municipalities separated by less than 50 kilometres.