VAT ON CHARTER

CHARTER IN FRANCE

CHARTER IN FRANCE

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 EUimported;
  • The Operator must be VAT- registered in France;
  • If running under the VAT-exemption statute, the conditions precedent to any charter stays the application to the FCE (French Commercial
  • Exemption)


VAT:

  • The applicable rate is 20% for charter parties for private use starting in France. The rate is reduced under the strict condition that the voyage includes a visit of the high sea outside the 12 miles zone;
  • VAT-exemption only applies to charter-parties for professional use;
  • A trimestriel filing against the French VAT –authorities is required ;
  • There is none French VAT to be paid for charter-parties starting from other EU-member states.


Tax- free fuel:

  • Since October 2016 no more available
  • 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