Understanding VAT

When booking a yacht charter, Value Added Tax (VAT) is an important factor to consider, as it can significantly impact the total cost. VAT rates vary depending on the charter's location and the yacht’s cruising area, and it's crucial to understand these differences when planning your charter.

Caribbean
Most Caribbean countries offer VAT-free yacht charters, making this region an attractive and cost-effective choice for luxury cruising.

France
In France, VAT on yacht charters is set at 20%, applicable to the entire charter fee. This is standard for most EU-based charters and includes iconic cruising areas like the French Riviera and Corsica.

Greece
Greece offers a variable VAT rate, depending on the yacht and the cruising route. Standard rates range from 12% to 24%, with some yachts qualifying for reductions based on their specific itinerary or licensing status.

Italy
The most expensive place at 22% VAT! But you do of course get the incredible Italian wines in return.

Croatia
The country is already known to be value for money, but at only 13% VAT it is a perfect no-brainer to book a yacht there! Incredible waters, excellent yachts and the government is not taking all of your money in the mean time.

Why VAT Matters

VAT is typically included in the contract, so ensure you clarify it with your client before booking. Understanding VAT rates helps you manage your client better in the decision process as it may rule out some destinations for the client that are very heavily taxed. The academy will make you perfectly understand the VAT in all countries but also exceptions to the rule, as your clients want to spend their money wisely and finding a “loophole” that will save them money will always put you on step ahead of other brokers.