In late November 2012, a European Union commission stated that the VAT exemption on chartering yachts in France is not compliant with EU VAT rules. France will now be required to take steps to remove the exemption from its tax legislation within two months, a ruling prompting one tax expert to say that France, “…cannot be regarded as a paradise for yachts anymore.”
Yachts in Cannes France
Jana Sheeder, President of 1-800 Yacht Charters explains how clients have escaped the VAT in France, until now.
“The rules for chartering yachts in the European Union changed back in 2010. Basically, chartering a yacht for less than 90 days requires VAT to be paid in the country where the chartered trip departs. France was able to avoid this ruling for many yachts by claiming that vessels registered as ‘commercial’ yachts could remain VAT exempt. To save thousands of Euros in tax-related expenses, we would only promote commercial yachts to our clients considering a cruise in France. Unfortunately, that option appears to be ending.”
“The process might be delayed by political lobbyists who represent the interests of the vast French yachting sector, ” says Sheeder. “The French government will be pressured to find a way to prevent a massive exodus of yachts from French ports to other destinations with more favorable tax environments.”
This entry was posted in Educational Yacht Charter News and tagged Mediterranean yacht charter, VAT on yachts, Cannes, VAT, france, how to book a yacht charter]
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