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Commercial fishing in the Po Delta: accounting and taxation of the fishing vessel

Business income, ordinary VAT and the Article 8-bis non-taxable regime for fishing businesses based in Goro, Gorino and Porto Garibaldi. The limits of the regime forfettario, the choice between simplified and ordinary accounting, the hull as a registered asset and the capital gain on sale.

A sea-fishing business operating from the ports of the Po Delta earns business income and, for VAT purposes, applies the ordinary regime: the special scheme under Article 34 of Presidential Decree No. 633/1972 does not cover catching fish at sea. A vessel used for coastal fishing, by contrast, falls within the non-taxable regime of Article 8-bis for purchase, sale, maintenance and refuelling, with the sole exception of ship’s provisions (provviste di bordo).

What kind of income sea fishing produces

Article 4, paragraphs 1 and 4, of Legislative Decree No. 4 of 9 January 2012 defines as a fishing entrepreneur (imprenditore ittico) the holder of a fishing licence who carries on fishing professionally, and extends to that person, subject to more favourable sector rules, the rules governing agricultural entrepreneurs. Article 32 of the TUIR (Consolidated Income Tax Act, Presidential Decree No. 917/1986), however, lists the activities that produce agricultural income (reddito agrario), and catching fish at sea is not among them. In our view, therefore, the fishing vessel generates business income under Article 55 of the TUIR, as an activity directed at the production of goods (Article 2195 of the Civil Code). Aquaculture falls outside this analysis.

Regime forfettario: where it works and where it does not

The regime forfettario (Italian flat-rate scheme) is reserved for individuals: a sole proprietorship may use it if, in the previous year, revenue did not exceed EUR 85,000 and expenditure on employees and collaborators did not exceed EUR 20,000 gross (Article 1, paragraph 54, of Law No. 190/2014). With a crew on board, the second limit is, in our view, the one more likely to be exceeded. The regime ceases from the following year if a requirement is no longer met, but already within the year if revenue exceeds EUR 100,000, with VAT applying from the transaction that causes the threshold to be exceeded (paragraph 71). The regime is not available to persons who hold interests in partnerships, associations or family businesses, or who control a limited liability company (srl) whose activity is connected with their own (paragraph 57, letter d).

The economic issue lies elsewhere: income is calculated by applying to revenue the coefficient set in Annex 4 for the ATECO code, with a substitute tax of 15 per cent (paragraph 64). Fuel, depreciation and maintenance are not taken into account. Where costs are high, the decision on forfettario or ordinario must be made on actual figures, year by year.

Simplified or ordinary accounting

Sole proprietorships and partnerships keep simplified accounts if revenue in the previous year did not exceed EUR 800,000, the threshold for businesses that do not supply services (Article 18 of Presidential Decree No. 600/1973); a company (società di capitali) must always keep ordinary accounts. Under simplified accounting, income is determined on a cash basis under Article 66 of the TUIR and no provisions are allowed other than those for severance and pension benefits (accantonamenti di quiescenza e previdenza).

The difference matters for the hull: only under ordinary accounting is the provision for cyclical maintenance and overhaul work on ships deductible, up to 5 per cent of the cost of each ship recorded in the register of depreciable assets, with an adjustment at the end of the cycle (Article 107, paragraph 1, of the TUIR). In our view this is a concrete argument in favour of ordinary accounting.

Typical costs: fuel, hull, gear

Fuel is a business-related, deductible cost. For VAT purposes, supplies for refuelling ships used for coastal fishing are non-taxable (Article 8-bis, paragraph 1, letter d), of Presidential Decree No. 633/1972). The provision excludes only ship’s provisions, which Resolution No. 10/E of 1 February 2012 limited to victualling, in line with Article 148(a) of Directive 2006/112/EC. The same regime covers engines, spare parts and on-board equipment and, under letter e), maintenance and repair.

Hull, engine and equipment are depreciated at the rates set by ministerial decree from the time they come into use, halved in the first financial year (Article 102, paragraphs 1 and 2, of the TUIR); assets with a unit cost of up to EUR 516.46 are deducted in full in the year (paragraph 5). Maintenance costs that are not capitalised are deductible, under both simplified and ordinary accounting, up to 5 per cent of the total cost of depreciable tangible assets shown in the register at the beginning of the financial year, with the excess deductible in equal portions over the following five financial years (paragraph 6).

The fishing vessel as a registered asset

Major ships (navi maggiori) are entered in the matricole, the main ship registers, and minor vessels (navi minori) in the registers kept by the maritime offices (Article 146 of the Navigation Code). Deeds transferring ownership must be in writing on pain of nullity, except for the small-tonnage vessels indicated in the same article (Article 249), and are made public by recording (trascrizione, Article 250). The sale of a vessel used for coastal fishing is non-taxable (Article 8-bis, paragraph 1, letter a). For a vessel used for fishing beyond the coastal zone, non-taxable treatment instead requires navigation on the high seas, with more than 70 per cent of voyages beyond territorial waters in the previous calendar year, and an electronic declaration filed with the Revenue Agency (Agenzia delle Entrate), which must be referred to in the invoice.

From tax year 2026, the capital gain on a single asset is taxable in full in the financial year in which it is realised; spreading it over five years in equal portions remains available for the sale of a business or business unit held for at least three years (Article 86, paragraph 4, of the TUIR, as amended by Article 1, paragraphs 42 and 43, of Law No. 199/2025). Selling the vessel with its gear as a business unit therefore changes the outcome.

VAT on the catch and the first sale

Article 34, paragraph 2, letter a), treats as agricultural producers those who fish in fresh water and those who practise fish farming, mussel farming and oyster farming, and Table A, Part I, covers fish, crustaceans and molluscs only if they come from those activities. Sea fishing remains under the ordinary regime, with input VAT deducted on an actual basis.

Fresh, chilled, frozen or deep-frozen fish intended for human consumption, crustaceans and molluscs are subject to 10 per cent VAT (Table A, Part III, No. 10-bis). Lobsters, spiny lobsters and oysters are excluded and subject to the standard rate.

The first sale to a wholesaler is documented by an electronic invoice through the Exchange System (Sistema di Interscambio, SdI), under Article 21 of Presidential Decree No. 633/1972. If the sale goes through a commission agent acting in its own name, the transfer to the commission agent is also a supply to be invoiced (Article 2, paragraph 2, No. 3), which is treated as made when the commission agent resells the product (Article 6, paragraph 2, letter d). An invoice may be omitted for a sale to the final consumer only if it falls within Article 22, with electronic transmission of daily takings (Article 2, paragraph 1, of Legislative Decree No. 127/2015). VAT is settled monthly or, where the business opts under Article 7 of Presidential Decree No. 542/1999 and its turnover is within the limits that allow it, quarterly; quarterly settlement carries a 1 per cent increase by way of interest. The cost of the crew requires a separate analysis.

The cited articles of Presidential Decree No. 633/1972, the TUIR, Law No. 190/2014 and Presidential Decree No. 600/1973 remain in force until 31 December 2026 and are carried over into the consolidated codes (testi unici) of Legislative Decrees No. 10/2026, 117/2026 and 141/2026 (among others: Article 34 into Article 133 and Article 8-bis into Article 48 of the consolidated VAT code).

In practice

• To establish whether they may remain in the regime forfettario, by the end of December the owner checks revenue and crew costs for the year that is closing and verifies that, from 1 January, they hold no interest in partnerships, associations or family businesses and do not control a limited liability company with an activity connected with fishing.
• The shipowner gives fuel suppliers and shipyards a copy of the fishing licence and of the vessel’s registration, and checks that invoices state “operazione non imponibile” (non-taxable transaction) with a reference to Article 8-bis of Presidential Decree No. 633/1972.
• A business under simplified accounting with cyclical shipyard work considers opting for ordinary accounting (Article 18, paragraph 8, of Presidential Decree No. 600/1973), which is binding for at least three tax years, in order to deduct the provision under Article 107.
• The register of depreciable assets records hull, engine and equipment; recorded purchase deeds are kept until the time limit for assessing the tax year of the last depreciation charge has expired.
• Before selling the vessel, the owner should estimate the capital gain, which is taxed in full in the year.
• Invoices for the catch distinguish between species: 10 per cent VAT as a general rule, the standard rate for lobsters, spiny lobsters and oysters.

Frequently asked questions

Can a sea fisherman apply the special agricultural scheme of Article 34?

No. Article 34, paragraph 2, letter a), of Presidential Decree No. 633/1972 treats as agricultural producers those who fish in fresh water and those who farm fish, molluscs and crustaceans, and Table A, Part I, refers only to the products of those activities. Catching fish at sea follows the ordinary VAT regime, with input VAT deducted on an actual basis.

Is the sale of a used fishing vessel subject to VAT?

If the vessel is used for coastal fishing, the sale is non-taxable under Article 8-bis, paragraph 1, letter a), of Presidential Decree No. 633/1972. The written form and recording (trascrizione) required by the Navigation Code still apply, and the capital gain is taxable in full in the year.

Under the regime forfettario, can fuel and depreciation of the boat be deducted?

No. Income is calculated by applying to revenue the profitability coefficient for the ATECO code, without deducting actual costs; only compulsory social security contributions remain deductible. For this reason, where costs are high, the regime forfettario may prove less advantageous than simplified accounting.

Sources

Presidential Decree No. 633 of 26 October 1972, Articles 2, 8-bis, 21, 22, 34 and Table A, Parts I and III (Normattiva, text in force on 6/11/2026)

Legislative Decree No. 10 of 19 January 2026, consolidated VAT code, Articles 5, 48, 72, 82, 133, 170, 171 and Table A, Part IV (Normattiva)

Presidential Decree No. 917 of 22 December 1986, Articles 32, 55, 66, 86, 102, 107 (Normattiva, text in force on 6/11/2026)

Legislative Decree No. 117 of 19 June 2026, consolidated income tax code, Articles 34, 64, 75, 95, 111, 116, 232, 233, 235, 238, 376, 377 (Normattiva)

Law No. 190 of 23 December 2014, Article 1, paragraphs 54, 57, 58, 64, 71 (Normattiva)

Law No. 199 of 30 December 2025, Article 1, paragraphs 42 and 43

Presidential Decree No. 600 of 29 September 1973, Articles 13 and 18; Legislative Decree No. 141 of 5 August 2026, Article 23 of the consolidated code (Normattiva)

Legislative Decree No. 127 of 5 August 2015, Article 2; Presidential Decree No. 542 of 14 October 1999, Article 7

Legislative Decree No. 4 of 9 January 2012, Article 4

Royal Decree No. 327 of 30 March 1942, Navigation Code, Articles 146, 249, 250

Revenue Agency, Resolution No. 10/E of 1 February 2012

Directive 2006/112/EC, Article 148(a)