Italy's Revenue Agency confirmed that boats owned through corporate structures can qualify for VAT import exemptions when individuals transfer their residence to Italy, provided they meet possession and use requirements under EU Directive 2009/132/EC.

The ruling addresses a UK resident planning to relocate to Italy under the country's new resident tax regime who owns a leisure boat through an Isle of Man limited partnership where he holds over 99.99% participation. The boat flies the Isle of Man flag and has been used exclusively for private purposes for more than six months.

Possession Requirement

The agency confirmed that "possession" under the directive means economic control over goods, regardless of legal ownership, citing European Court of Justice case law from 2005. Since the applicant exercises exclusive control over the boat through his corporate vehicle and is the sole authorized user, this requirement is satisfied in principle, though factual verification would be needed during actual importation.

Location Requirement

For the requirement that goods be used in the place of previous normal residence, the agency accepted that the Isle of Man registration does not prevent exemption eligibility. The 1979 Customs and Excise Agreement between the Isle of Man and UK creates a single territory for VAT and customs purposes, qualifying as a "particular case" under the directive. The agency also noted that using the boat in third-country waters would similarly qualify as a particular case.

Context

The ruling clarifies application of EU personal goods import exemptions in Italy, where Directive 2009/132/EC has direct effect despite lacking specific national implementing legislation. The decision supports the directive's objective of facilitating free movement of persons and goods within the EU while maintaining anti-avoidance safeguards through possession and use requirements.