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“Spanish IVA (VAT) remains at 21% – nearly double the typical fees found in other EU countries,” states Jana Sheeder, President of SailAway Yacht Charters and 1-800 Yacht Charters. Sheeder adds, “A myriad of permits and registration requirements makes it difficult for charter vessels to commit to cruising in Spain.Without Spanish registration, these yachts cannot begin and end a charter within Spanish waters. So the combination of administrative burdens and high IVA keeps most charter yachts out of Spain.”
Sheeder explains,“The tax has not been eliminated. The Ministry was careful to use the words, ‘Ceased to be applied.’ While we expect the Spanish Parliament to vote in favor of the Ministry’s position on the matriculation tax, there is no guarantee that a future administration won’t vote to reinstate it.”
Still, the abolishment of the matriculation tax is a step in the right direction. Parliament’s approval is expected within the next few months and the new exemption should be in place in time for the summer 2014 charter season.
This entry was posted in News Educational and tagged IEDMT (Impuesto Especial sobre Determinados Medios de Transporte), matriculation tax, IVA, what is VAT, SailAway Yacht Charter Consultants, luxury yacht charter tax, Jana Sheeder, president of 1-800 Yacht Charters, Spain yacht charter, VAT, Balearic yacht charterPosted on
We return to the VAT subject from July. We previously informed our readers about the new French VAT regulations on yacht charters. The VAT applies to yacht charters in France.
New regulations exist. The new regulations apply from 15 July 2013 to charter agreements for yachts for the purposes of leisure travel.
We sat down with Jana Sheeder, President and corporate Maven of SailAway Yacht Charter Consultants and 1-800 Yacht Charters, to review the answers to the three most frequently asked questions regarding the new rules.
“The rate has been set at 19.6% and will increase to 20% on January 1, 2014. However, the taxable base can be reduced by 50% if the yacht is used outside European Union territorial waters, which by definition extend out 12 nautical miles from the coastline. Thus, if you started a charter in Nice, France, and cruised out beyond the 12 nm limit, and concluded the trip the next day in Sardinia, the tax would drop to 9.8%.”
“No. The law reads VAT is applicable on the charter if the vessel is put, ‘…at the disposal of the charterer in French waters.'”
“Not at all. It is the responsibility of the yacht owner to make the necessary arrangements to register his or her vessel with the French taxing authorities. As to the collection and processing of the tax, most owners are hiring local French-based fiscal agents.”
“As charter consultants, our responsibility is to clearly explain the new regulations to our clients. Many are repeat charterers who cruised multiple times in France in the past. For some, it will be a shock to hear their next Western Mediterranean yacht charter vacation may be subject to a tax of nearly 20%. We will work with them to modify their itineraries, in an effort to mitigate as much of the tax liability as possible.”
Drop us an email at email@example.com, and we will respond right away.
This entry was posted in News Educational and tagged what is VAT, Q&A, france yacht charter, VAT questions, VAT in France, French taxes, faq's, yacht charter questions, maven, Frequently Asked Questions, mitigation, cannes france yacht charter, South of France yacht charter, VAT, yacht charter mavenPosted on
Today’s blog involves the end of the France VAT exemption. Back in February, we speculated the cost to rent a private yacht in the fabled south of France was about to go up, due to a ruling by the European Union the VAT exemption on chartering yachts in France was not compliant with EU VAT rules. Now, France’s efforts to seek a VAT exemption have failed, as the European Court of Justice has ruled the French tax exemption for commercial vessels is illegal.
On March 21, the European Court of Justice (in European Commission v. France; C-197/12) had a belief. It held that French legislation providing a VAT exemption for some commercial vessels used for navigation on the high seas. Specifically that carry passengers for remuneration or are used for commercial activities. “…does not comply with Directive 2006/112/EC (the VAT directive), specifically with article 148(a), (c), and (d).
“ The approach of the summer charter season is at hand. Yacht managers and owners are scrambling. In specific, to make sure all paperwork is in compliance with the ECJ’s ruling.”
This entry was posted in Yacht Charter Destinations News Educational and tagged yacht charter med, where do they charge VAT, end of france vat exemption, yacht charter France, Mediterranean yacht charter, VAT, what is VAT, European Court of JusticePosted on