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Yacht Charter VAT by Country 2026 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 13% for crewed charters over 48 hours, and licence-based reductions can bring the invoiced rate down even further.

What is yacht charter VAT?

A List of Yacht Charter VAT Rates by Country

Country VAT Rate Notes
Albania 0% No VAT for charters starting in Albania. EU VAT applies for any days spent in EU waters.
Australia 10% 10% GST on the charter fee.
Bahamas 14% One flat 14% tax on the charter fee (it replaced the old 4% + 10% split in July 2025).
British Virgin Islands 0% No tax on the charter fee itself. Per-person BVI government fees (cruising tax, environmental levy, national parks) apply on top.
Croatia 13% 13% on the charter fee for charters starting in Croatia. Start outside the EU (say Montenegro) and the 13% covers only your days in Croatian waters.
Cyprus 19% Applies to all charters in Cypriot waters
Fiji 5% charter fee Most charter superyachts pay a 5% charter fee instead of VAT. Locally operated boats charge 12.5% VAT.
France & Monaco 20% 20% on the charter fee. Days documented outside EU waters reduce it proportionally.
French Polynesia 5% A 5% tax on the charter rate, usually collected with the APA.
Gibraltar 0% Gibraltar has no VAT at all.
Greece 13% (charters over 48 hrs) The headline rate is 24%, but crewed charters over 48 hours pay 13%, and most yachts qualify for reductions that bring the invoiced rate down to 5.2 to 6.5%.
Italy 22% 22% on the charter fee, charged in proportion to your time in EU waters.
Malta 18% 18% standard. A reduced 12% rate exists, but few charter yachts qualify.
Montenegro 0% No VAT on charters starting in Montenegro. Days spent in Croatian waters incur Croatia’s 13%.
Mallorca (Spain) 21% Charters starting in Spain pay 21% on the full fee, with no reduction for time in international waters.
St Barths 0% No VAT; the island sits outside the EU VAT zone. A charter starting in mainland France pays French VAT instead.
Turkey 0% for Foreign flagged vessels;
20% for Turkish vessels
Turkish-flagged yachts charge 20% VAT. Foreign-flagged yachts pay no Turkish VAT but need a licence or permit to start charters in Turkey, which your broker confirms before you book.
UK 20% VAT applies to charters starting in the UK
USA State Tax applies No federal VAT. State and local sales taxes vary by where you embark.
US Virgin Islands 5% (gross receipts) Charters pay the 5% USVI gross receipts tax, usually built into the price. The 12.5% hotel tax does not apply to charter guests.

People also ask

Why are yachts listed excluding VAT?

Charter yachts are listed excluding VAT because the amounts differ from yacht to yacht and can even change for the same yacht within a season. Please inquire and we will provide the specific details for your 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, and the payment is managed by the fiscal agent. After signing the charter contract and before boarding, you will make a few payments: the charter fee, the Advance Provisioning Allowance (APA), VAT, and sometimes additional fees like delivery or a security deposit. There are no unexpected costs; everything is clearly outlined in your agreement.

Does my itinerary affect my yacht charter VAT?

VAT is generally tied to the country where your charter begins, regardless of where the itinerary takes you afterward. If you start your charter in Antibes, France, you pay VAT to the French authorities at the French rate, even if your journey ends in Dubrovnik, Croatia.

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). The exception is all-inclusive charters, where VAT is calculated on the entire cost, since provisions are part of the price.

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