VAT ON CHARTER

CHARTER IN CROATIA

CHARTER IN CROATIA

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.

CHARTER IN FRANCE

CHARTER IN FRANCE

 

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.

 

 


CHARTER IN GREECE

CHARTER IN GREECE

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


CHARTER IN ITALY

CHARTER IN ITALY

NEW RULES APPLICABLE UPON 1ST APRIL 2020
 

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;

 

VAT:

·      The VAT rate is 22% on ALL charter starting in Italy or coming in from outside EU;

·      The Owning Company may not charge Italian Vat on the portion of effective use (the time or the miles)  spent in international waters.

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

 

Tax-free fuel:

·      Available against current charter agreement and under respect to the condition that over the civil year 70% of the voyage of the yacht goes outside of the 12 miIes zone.

 

 


CHARTER IN SPAIN

CHARTER IN SPAIN

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 .