25/07/2019 (Agence Europe) – On Thursday 25 July, the European Commission brought an action for failure to fulfil obligations before the Court of Justice of the European Union (CJEU) against Italy concerning its system of tax breaks for fuel used to power chartered yachts in EU waters, which it considers incompatible with the rules of Union law. In addition, the institution has decided to send reasoned opinions to Rome and Nicosia, in so far as it considers that the authorities of the two countries do not apply the standard rate of value added tax (VAT) for the leasing of yachts. For the Commission, such exemptions may lead to significant distortions of competition and run counter to the objective of fiscal consolidation in Italy and Cyprus. (LT)