The Constitutional Court finds the VAT rate of 10% for marinas to be unconstitutional

By its decision No. 21/2016 the Constitutional Court has found unconstitutional the reduction to 10% of the VAT rate applicable to marinas, introduced by Law decree No. 133/2014 in order to boost the marine sector. Specifically, Article 32, section 1, of the Decree likens marinas (structures organized for the mooring and overnight stay of pleasure vessels) to outdoor accommodation facilities, which enjoy such reduced VAT rate.

The Constitutional Court has preliminary held that it is for Regions the competence to legislate the “Tourism and hotel industry” sector, while the central State is competent to legislate the tax sector. According to the Constitutional Court, the State intervention concerned, which intervenes in a field where the legislative competence between State and Region is shared, it is not unconstitutional per se. However, the Court has held that the provision is in violation of the principle of loyal cooperation between the State and Regions, on the grounds that the State did not obtain the prior agreement of the Permanent State-Regions Conference, prior to issue it.