France’s efforts to seek an exemption from VAT on yacht rentals has failed, and starting July 15, 2013, charterers can expect to pay an additional 9.8% for their Côte d’Azur yacht charter.
For years, the majority of Mediterranean yacht charter vessels based in France were registered as commercial vessels, a strategy that allowed their owners to sidestep VAT on the purchase of fuel and on the prices charged for charters. The European Union prevailed in court to force France to follow EU VAT guidelines, and beginning July 15, charters will be subject to the nearly 10% fee.
“We are investigating other countries in the European Union as alternative Mediterranean yacht charter destinations. Gibraltar, for example, has no import duty for yachts over 18 meters – and no VAT.”
This entry was posted in Educational and tagged SailAway Yacht Charter Consultants, Mediterranean yacht charter, Jana Sheeder, president of 1-800 Yacht Charters, cote d'azur, VAT, france yacht charter, VAT in France, GibraltarPosted on