Conditions precedent:

• yacht registered under a EU-flag with the authorization by the Flag-State to be chartered, for a non EU-flagged yacht a Croatian charter licence stays required;
• the Operator must be VAT-registered in Croatia and present an Croatian fiscal identity (PIN);
• Yacht & crew (E-crew) have to be registered at the Croatian ministry of maritime affairs;
• upon the first arrival the Captain is required to announce to the port authorities that the yacht is entering in order to be chartered.

VAT:

• The applicable rate to a charter longer than one day with overnight passengers is 13% for charter parties starting in Croatia;
• a monthly filing against the Croatian VAT –authorities is required ;
• Croatian VAT to be paid in prorate-basis in time for charter-parties starting outside the EU;

Tax-free fuel:

• not available, so you have to bunker either in Italy or Montenegro.

Practical Advises:

• Croatia is not a member of the Schengen convention, so crew and passengers , have to declare their arrival at the first port of entry.

Conditions precedent:

·      The Operator must be VAT- registered in France;

·      The applicable standard rate is 20% for charter parties for private use starting in France. The rate is reduced under the strict condition that the voyage includes per guest list a visit of the high sea outside the 12 miles zone;

·      VAT-exemption only applies to charter-parties for professional use;

·      If running under the VAT-exemption statute, the condition precedent to any charter stays the application to the FCE-rules;

·      There is none French VAT to be paid for charter-parties starting from other EU-member states.

Alternative:  Maritime Cruise Agreement

·      Applicable VAT rate 10%

·      Fixed cruise itinerary and fixed guest list

Tax- free fuel:

·      VAT exemption available under the respect of the condition that over the civil year 70% of the voyage goes outside of the 12 miles zone.

Conditions precedent:

• yacht registered under a EU-flag with the authorization by the Flag-State to be chartered;
• the Operator must (1) establish a physical branch in Greece , (2) be VAT registered in Greece and (3) obtain a Greek charter licence;
• the Operator has to name a fiscal representative and to register the yacht in the Greek charter yacht register;
• there is the obligation to have the yacht chartered with a minimum of  200 days over a 5 years reference period.

VAT:

• The applicable rate is 24%, but reduced to 9,6% for foreign yachts entitled to perform international cruises for charter parties upon 3 days
• duration and starting in Greece;
• There is no Greek VAT to be paid for charter parties starting from other EU-member states, but the yacht must obtain a “Dilkito” from the authorities of the first port of entry and no change in the passengers list is allowed;
• Greek VAT applies in prorate basis in time for charter parties coming in from non EU countries.

Tax-free fuel:

• available for crewed yachts under the condition to be chartered at least 75 days during an 3 years reference period.

Practical Advise:
To avoid the pitalls of the complex Greek system , do no charter parties starting from Greece

Conditions precedent:

• Yacht registered under a EU-flag with the authorization by the Flag-State to be chartered, or if non EU-flagged the yacht must have been EU-imported;
• The Operator must be VAT- registered in Italy;
• If running under the VAT-exemption statute, the condition precedent to any charter will be the AUTHORIZATION

VAT:

• The applicable rate is 22% for charter parties for private use starting in Italy, reduced VAT rate, (6,6 % - 11% effective rate subject to LOA) available under the condition of sailing in international waters;
• Tax free bunkering stays possible against presentation of the charter agreement
• A trimestriel filing against the Italian VAT –authorities is required ;
• There is none Italian VAT to be paid for charter-parties starting from other EU-member states.
• Italian VAT applies in prorate basis in time for charter parties coming in from non EU–countries.

Tax-free fuel:

• Available against current charter agreement and under respect of the condition that over the civil year 70% of the voyage goes outside of the 12 miles zone.

Conditions precedent:

• yacht registered under a EU-Flag with the authorization by the Flag-State to be chartered;
• The Operator must be VAT- registered in Spain;
• Prior to starting chartering in Spain, there has to be reached an exemption for the Spanish matriculation tax and a Spanish charter licence is required;

VAT:

• The applicable rate is 21% for charter parties for private use starting in Spain;
• VAT-exemption does not apply to the charter price;
• Tax-free bunkering only available on mainland;
• A monthly filing against the Spanish VAT –authorities is required;
• There is none Spanish VAT to be paid for charter parties starting from other EU member states;
• Spanish VAT applies in prorate basis in time for charter parties coming in from non EU countries.

Tax-free fuel:

• not available on the Balearic Islands;
• Available in some regions of the mainland .