According toArticle 12 of the Amendment Law 13(1)/2010 voted by the Parliament on 5 March 2013 for harmonization purposes with the EU VAT Directive in respect of the place of supply of services, from 1 January 2013 an amendment comes into effect in respect of the place of supply for long term hiring of means of transport to non-taxable persons (B2C supplies).
Based on paragraph 14A of Part III of the Thirteen Schedule of the VAT Law of 2000 to 2012, the place of long term hiring of means of transport to non-taxable persons (B2C supplies), changes from the place where the supplier of services is established, to the place where the recipient of the services is established, has his permanent address or usually resides.
Long term hiring of means of transport is the continuous possession or use of the means of transport throughout a period of more than 30 days and, in the case of vessels, of more than 90 days.
Where the long term hiring of means of transport to non-taxable persons relates to pleasure boats, the place of hiring the pleasure boat is the place where the pleasure boat is actually put at the disposal of the customer, where this service is actually provided by the supplier from his place of business or a fixed establishment situated in that place.