VAT amounts applicable to Charter Yacht through the Mediterranean

VAT amounts applicable to Charter Yachts through the Mediterranean. Winter 2014 Version

1 VAT amounts applicable to Charter Yacht through the Mediterranean. Winter 2014 Version

Chartering In Europe and the VAT game.. Who charters what in which country to which citizens on which boat. Yes, probably about as boring as it sounds.

And it will all change next year.

Here is my condensed version:

France: VAT is applied to yacht charters that START in France with effect from the 15th of July 2013. Monaco is the same. 20%. There are possibilities that the VAT can be reduced to 10%, but you have to be going into International WATERS (12 NM off shore. Can you find that in the Med?

Additionally, it is becoming more and more important that companies owning commercially registered yachts actually charter the yachts in an economically feasible manner so you do not get around the VAT reclaimation formerly possible with Fuel and Provisioning. Accounting for VAT properly on APA (Advanced Provisioning Allowance) is very important.

Yachts starting their charter in Monaco or France must be VAT registered!

2 VAT amounts applicable to Charter Yacht through the Mediterranean, Winter 2014 VersionDouce France Charter Yacht

Italy: For a yacht departing from an Italian Port, and never going further then 12 nm out from land, the full VAT is due on Charter Fee, Delivery Fee, APA expenses that also include the fuel used on that charter. This is a whopping 22%.

If the yacht is departing from an Italian Port and sailing both in Italian (les sthen 12 NM) and European (more then 12 NM) there is a reduced effective rate of 6.6 % (30% of the full VAT rate) which is applied to Charter Fee. Delivery Fee. APA expenses including the fuel.

Yachts starting their charters in Italy must be VAT registered in Italy. In order to get a VAT # the yacht must have been imported into the European Union. This can take several weeks to obtain this number, if you have all the documents correct!

If you are non EC owned vessel you will need both an Italian Fiscal Representative as well as the Italian VAT number.

3 VAT amounts applicable to Charter Yacht through the Mediterranean, Winter 2014 VersionTuscany Charter Yachts Italy

Montenegro: No VAT! Lucky You! BUT the owning or management company of each yacht has to issue a “Letter of Appointment” stating the the captain has full authority over the vessel and crew that is under his command and THIS HAS TO BE notarized. Otherwise, it is not valid.

4 VAT amounts applicable to Charter Yacht through the Mediterranean, Winter 2014 VersionMontenegro- VAT for Charter Yachts

Greece: Only Greece flagged yachts can do charters in Greece. Everyone else has to embark or disembark their guests outside of Italy. The Rate varies on the size of the yacht. There is NO VAT however at this date in time, for yachts who are embarking or disembarking outside of Greece.

5 VAT amounts applicable to Charter Yacht through the Mediterranean, Winter 2014 VersionGreece- Charter Yachts

Turkey:  Currently there is NO VAT applied to charters of Foreign Flagged Vessels. Now, Today.

However, of course there is of say, if a guests embark in Greece and then cruise to Turkey, there is no charge. If the Foreign Flagged vessel wants to pick up guests in Turkish Waters, the yacht will then have to clear “out” of the country immediately, and visit one port outside of Turkey and THEN return to a different port then the one they cleared out of.

Each and Every time a commercial yacht then clears into Turkey there will be a fee of $30.00 US per meter. Every yacht that is in Turkey and Clearing out is able to take on duty free fuel.

6 VAT amounts applicable to Charter Yacht through the Mediterranean, Winter 2014 Version Charter Yachts in Turkey

Spain: In 2013 only yachts that are imported into Spain have paid the Matriculation tax can legally charter in Spain. If all the guests embark and disembark outside of Spain and only cruise in Spanish waters, this seems to be ok to officials. As long as no guests are Spanish, Spanish Resident or own property in Spain. This changes in 2014 when this tax will be abolished and commercial yachts can charter in Spain but they will be liable for Spanish VAT.

7 VAT amounts applicable to Charter Yacht through the Mediterranean, Winter 2014 Version Charter Yachts in Spain

Albania: No legislation addressing this currently! I think I am going there..

Croatia: Since joining the EU, VAT in Croatia is a hefty 25%. However, you might be able to do 13%.

1) Commercial Yachts under 40 M that are non Croatian and Non EU flagged cannot embark in Croatia. They can however, embark in Montenegro or Slovenia without paying VAT.

2) If you have a Non EU Flagged commercial yacht over 40 m you can embark and disembark in Croatia, however you will need a Cabotage License. AND this little license can take up to 3 months. There are limited licenses issued! This is applicable every year, you will need a fiscal representative to register for VAT in Croatia and the 13% rate will then apply to charters.

3) EU flagged commercial yachts over 40 metres, they can embark and disembark in Croatia but you will need a Charter Licence, that costs about 400 Euros. You must appoint a fiscal representative and be VAT registered. Then you will pay the 13% VAT.

ANY and ALL commercial yachts engaged in Charter Activity must have a certification of Technical Inspection done in the last 12 months. If not, Croatia Register of Shipping will be happy to do it for you (at a cost).
In Croatia you can only obtain duty paid fuel and provisions.

If you count on adding 25% of the charter fee and APA (Advanced Provisioning allowance) I know it sounds like a lot, but you would be covered in about all eventualities.

8 VAT amounts applicable to Charter Yacht through the Mediterranean, Winter 2014 VersionCharter Yachting in Croatia

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