Regulations
The abovementioned flat rate system is illustrated in the following table, which shows the percentage of the rental subjected to VAT as well as the actual incidence of the VAT on rental for each type of pleasure craft.
As far as concerns redemption (that is, the equivalent purchase sum) for the pleasure craft at the end of the leasing agreement, this is subject to VAT at the normal rate on the total amount.
| Type |
% Rent
Subject to VAT |
Actual Tax Incidence |
| Sailing or motor boats over 24 metres in length |
30% |
6% |
Sailing boats ranging from 20.01 to 24.00 metres in length
and motor boats ranging from 16.01 to 24 metres in length |
40% |
8% |
Sailing boats ranging from 10.01 to 20 metres in length
and motor boats ranging from 12.01 to 16 metres in length |
50% |
10% |
|
