Yacht Charter VAT by Country 2024 Guide

What is Yacht Charter VAT?

Charter VAT (Value Added Tax) is a tax applied to the cost of renting (or chartering) a yacht in certain countries. The VAT rate can vary, ranging from 0% to 24%, depending on the country where the yacht charter begins, its duration, and whether the yacht travels in domestic waters, international waters, or a combination of both.

For example, Greece has a standard VAT rate of 24%, but this drops to 12% for charters over 48 hours. The VAT can be further reduced under special circumstances, for example, if the yacht spends a significant amount of time outside of Greek waters.

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Charter Broker Louis Lamprell from DMA Yachting
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Rating: 4.9 out of 5 with 263 reviews.

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A List of Yacht Charter VAT Rates by Country

Country VAT Rate Notes
Albania 0% Charter starts in Albania
Australia 10% Charter starts in Australia
Bahamas 4% + 10% Charter starts in the Bahamas
British Virgin Islands 0% Charter starts in the British Virgin Islands
Croatia 13% Charged on the number of days in Croatian waters
Cyprus 19% Applies to all charters in Cypriot waters
Fiji 5% Charter starts in Fiji
France & Monaco 20% Charter starts in France or Monaco
French Polynesia 5% Charter starts in French Polynesia
Gibraltar 0% There is No VAT for charters starting in Gibraltar
Greece 12% (if > 48 hrs) The standard yacht charter VAT in Greece is 24%, but drops to 12% for charters over 48 hours, and can drop even further under certain circumstances.
Italy 22% Charter starts in Italy
Malta 0% Charter starts in Malta
Montenegro 0% Charter starts in Montenegro
Mallorca (Spain) 21% Charged on the number of days in Spanish waters
St Barths 0% Charter starts in St Barths
Turkey 0% for Foreign flagged vessels;
18% for Turkish vessels
Charter starts in Turkey
UK 20% VAT applies to charters starting in the UK
USA State Tax applies Charter starts in the USA
US Virgin Islands 12.5% Gross Receipts tax applies to charters in the USVI.

FAQ

Why Are Yachts Listed Excluding VAT?

Charter Yachts are listed excluding the VAT (Value Added Tax) because the amounts differ from yacht to yacht and might even be different for an individual yacht within the season. Please inquire and we will provide specific details of the yacht and dates.

When Do I Pay the Yacht Charter VAT?

VAT is paid along with your final charter fee, typically one month before the start of your trip. This payment is managed by the Fiscal Agent, ensuring everything is taken care of in advance.

After signing the charter contract and before boarding, you’ll need to make a few payments: the charter fee, Advanced Provisioning Allowance (APA), VAT, and sometimes additional fees like delivery or security deposits. There are no unexpected costs; everything is clearly outlined in your agreement. Our goal is to make booking your superyacht charter easy and stress-free, so you can focus on enjoying your journey, knowing all financial details are securely handled ahead of time.

Does My Itinerary Effect My Yacht Charter VAT?

VAT (Value Added Tax) is generally tied to the location where your yacht charter begins, regardless of where the itinerary takes you afterward. This means that the VAT is due to the authorities of the country where the charter starts, and the rate is based on that country’s regulations.

Example Explanation:

If you start your yacht charter in Antibes, France, you are obligated to pay VAT to the French authorities, even if your journey ends in a different country, such as Dubrovnik, Croatia. The VAT is calculated according to the French VAT rate because the service (the yacht charter) was initiated in France.

Do I Have to Pay VAT on the APA?

VAT is only charged on the base charter price, not on the Advance Provisioning Allowance (APA). However, for all-inclusive charters, VAT is calculated on the entire cost of the charter, which includes all services and provisions. This setup is especially beneficial for clients who have previously chartered an all-inclusive catamaran in the Caribbean.

Testimonials

★★★★★

Wonderful yacht experience in Greece!

We had such a fabulous trip to Greece – Louis Campbrell with DMA yachting did a wonderful job matching us with an amazing boat, captain and crew. We have been on 10 sailing trips and this was the best! Louis was involved in every aspect to make it a memorable family vacation! Thank you Louis!

Date of experience: June 29, 2024

– Meg Allison

★★★★★

Best trip of our lives!

Daniel was incredibly helpful from the beginning of our planning. […] Daniel continued to be responsive to questions over the months leading up to our trip, even following up many times during our trip to make sure all was well. We would highly recommend Daniel/DMA Yachting to anyone looking to book a similar trip!

Date of experience: July 14, 2024

– Bart H

★★★★★

Amazing Charter in Croatia!

We spent seven days sailing the islands of Croatia. We were a party consisting of two families, including five kids. The whole process was exceptional and effortless, from booking to the actual charter. […] The design of the boat worked very well for kids, and there was never a moment when we wished for something else.

Date of experience: June 15, 2024

– Chris (Hong Kong)

★★★★★

Professional Experience and Great Time!

Chris de Kock was a pleasure to work with – he is very professional and responded to all of our questions immediately. DMA made the process very easy, and our cruise could not have gone better. Professional in every respect. If you’re considering taking a cruise, […] I definitely will be using them in the future!

Date of experience: June 19, 2024

– Tony Bonacuse

★★★★★

Great experience in Greece

Sarah K was invaluable throughout the entire process. She guided us through all of the options and provided great insights on the benefits of every option. We enjoyed the trip of a lifetime thanks to the Sarah and the support she offered us.

Date of experience: June 24, 2024

– Joseph

★★★★★

Best Trip Ever!!!

This was our first experience chartering a Yacht. Nadja was excellent at finding the right boat and crew for us. She was always in touch making sure all my questions were answered and even reached out during the trip to make sure all was well. Perfect family vacation. So fun. Will use them again for sure.

Date of experience: May 24, 2024

– Customer

Our Team

Alex Hailwax
Alex Hailwax

Charter Broker

Louis Lamprell
Louis Lamprell

Charter Broker

Mo Pristas
Mo Pristas

CharterGuru

Marcelle Hailwax
Marcelle Hailwax

Charter Broker

Martina Asmus
Martina Asmus

Owner, Charter Broker, Active CYBA Member, IYBA, ECPY

Yanna Pristas
Yanna Pristas

Senior Charter Broker, Associate CYBA Member

Chris de Kock
Chris de Kock

Charter Broker

John Boullin
John Boullin

Charter Broker

William Mc Nally
William Mc Nally

Charter Broker

Daniel Asmus
Daniel Asmus

Owner, Charter Broker, Active CYBA Member, IYBA, ECPY