A new, higher VAT (Value Added Tax) rate went into effect for all charters that commenced after July 20, 2015 in Greek waters.
The new legislation [N.4334 (??? ?’ 80/16-07-2015)] raised the overall VAT from 13% to 23%, however, lower rates apply to certain charters, based upon the duration of the hire.
There are two VAT categories for charters lasting 3 days or longer:
For short term charters, up to 48 hours, there are no discounted rates, and full VAT of 23% is due (previously 13%).
Jana Sheeder, President of 1-800 Yacht Charters, points out the new VAT rates affect ALL charters taking place after July 20, 2015 – even if the charter agreements were signed in prior months. “With the current economic crisis in Greece, we’ve been anticipating some form of VAT austerity,” says Sheeder. “With each charter agreement we prepare, we add a clause indicating that the charterer is responsible for any increase in VAT – this way, there are no surprises. The more details we cover with our clients, the smoother their Superyacht Experience will be.“
QUESTION TO YOU: How will the increase in VAT on private luxury yacht charter vacations in Greece effect the number of yacht charters? Will clients seek alternate destinations or, “grin and bear it” to enjoy a Greek yachting holiday?
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