Circular n° 765 (15 May 2013) is effective as of fiscal year 2013, and provides guidance for use by banks, financial companies, fund management companies, insurance companies, certain holding companies, real estate companies, and other entities that conduct certain “mixed activities” that may provide a right for recovery of input VAT.
Place of supply-telecommunications, broadcasting, electronic services
New “place of supply” rules regarding the provision of telecommunication, radio and TV broadcasting, and electronic services will be effective 1 January 2015.
As of 2015, these services will be taxable in the place where they are effectively used and enjoyed—i.e., where the recipient of the services is located. This constitutes the final step of the implementation of the VAT package.
VAT on yacht charters in France
The Court of Justice of the European Union (CJEU) issued a judgment in March 2013 concerning the French VAT exemption for certain commercial vessels used for navigation on high seas.
The CJEU held that French law providing a VAT exemption for some commercial vessels used for navigation on high seas that carry passengers for remuneration or are used for commercial activities does not comply with the VAT directive.
Because most of the Mediterranean yacht charter vessels in France are registered as commercial vessels, the end of the VAT exemption could affect the luxury yacht charter business.
Read a May 2013 report [PDF 98 KB] prepared by the KPMG member firm in Luxembourg: VAT Update