Brazilian Boatbuilders Push to Reduce VAT Tax on Yachts

Members of the Sao Paulo Nautical Forum met with the Secretary of Economic Development, Science and Technology of Sao Paulo, Rodrigo Garcia, to expose challenges in the Brazilian yachting industry. In the meeting they pushed for the reduction of the very high Brazilian VAT for new and used boats.

Nautica reports that at present, there is a large variation of the tax on circulation of goods and services (ICMS) between Federal states – it can range from 3.5% to 25% from one Brazilian state to another. As a result, yachts built in Sao Paulo end up on average 7% more expensive than motorboats and sailboats produced in Santa Catarina and Rio de Janeiro.

To remain competitive and avoid the transfer of manufacturing sites from Sao Paulo to other Brazilian states, members of the Sao Paulo Nautical Forum told Rodrigo Garcia that the group’s main goal is a reduction of VAT for new and used boats.

The proposal will be examined by the government that has promised to resolve the matter by the end of the year