The digital portal addresses two crucial subjects: the calculation of the 70% rule (commercial exemption) and the pro rata of due VAT on charters, for France and Italy.
The regulations regarding the above mentioned have changed in the past few years, making their management more intricate. Vessels and their fiscal representatives are adapting but are mostly dependent on post-cruising human processing and calculations.
What is the “70% rule”?
A commercial yacht willing to operate with the tax exemption scheme in France and Italy must comply with five criteria allowing to edit and sign Commercial Activity Certificates. The trickiest criteria to be respected and proven is that the vessel must have left territorial waters (respectively French or Italian) for at least 70% of the trips carried out during the previous year.
LogNav comes into play
It offers an automated interface and calculation system, based on the AIS data of the boat combined with a multi-layer algorithm which integrates all tax rules and related parameters.
Being parametric and dynamic, it automatically enriches raw AIS data with information related to a vessel’s geo location and its navigation events. The system calculates and demonstrates the expected features such as the proper taxable base for the VAT on charter fees or any data related to the compliance with the commercial exemption rules.
LogNav displays in real-time the necessary gauges, graphics and tables allowing you to keep track and even to foresee the yacht’s stance. It allows you to generate immediately the required reports, which can be downloaded in PDF or CSV formats.