Ask the Yacht Charter Pros: How to Pay Less VAT (Tax) on a France Yacht Charter Vacation?

QUESTION

“I’m planning a 10 day private yacht charter in St. Tropez and the South of France in July. My broker say VAT is 20%. That’s seems a lot. Is there way to not pay this?”
Xavier E, Barcelona, Spain

ANSWER

Answer provided by Jana Sheeder, President 1-800 Yacht Charters:

“The bad news, Xavier, is all charters that take place in a European Union (EU) country are subject to VAT (Value Added Tax). However, we have good news as well – there is a simple, legal strategy that can cut your VAT expense in half.

Instead of paying 20%, this strategy will reduce your VAT to 10% of your base charter fee – a significant savings!

Each EU country can set their own level of VAT on commercial yachts for hire. In France, if the yacht undertakes a coastal cruise in French territorial waters, the VAT is 20% of the base charter fee (the base fee is the cost to rent the yacht before factoring in other running expenses such as food, dockage, etc.). So, for example, if you began your charter in Saint Tropez, and cruised along the Côte d’Azur and concluded your trip in Antibes, you would incur a VAT expense of 20%.

MORE INFORMATION ABOUT VAT

However, IF you plan a portion of your charter to cruise in international waters, your legal responsibility for VAT drops to 10% – a savings of 50%!

So how do you do this? Here’s how: When you are planning your itinerary with the yacht’s captain prior to the commencement of your charter, let the captain know that you would like to, “visit a port that requires you to cruise in international waters and beyond the coast of France.”

HOW CAN I SAVE TAX?

You could, for example, leave the French coast and cruise to the island of Sardinia. This is approximately a 5-7 hour cruise from the South of France.

SPECIAL TIP

Ask your captain to undertake this crossing overnight, while you and your guests are sleeping. Then, when you rise in the morning, you’ll be able to spend a full day, or longer along the coastline of this fabled Italian island before heading back to France.

So there you have it.  With a little strategic planning, a slight deviation in your St Tropez yacht charter can result in big savings; possibly thousands of Euros depending upon the cost of your charter.”

ASK US A YACHT CHARTER QUESTION

Jana Sheeder, President of 1-800 Yacht Charters and 1-800 BAREBOAT

Have a question about a yacht charter vacation?

Submit your question to me, and my team will help you.

If we print your question in our blog, we’ll send you a complimentary Eco-tote bag.

Email me at jsheeder@1800yachtcharters.com

Thank you, and keep those questions coming!!!

This entry was posted in Destinations Frequently Asked Questions Educational and tagged Jana Sheeder, 1800yachtcharters, Education, Ask The Pro's, Save money on a yacht charter, Tips and tricks, Ask the Yacht Charter Pros, Discounts, VAT value added tax, private yacht charter

About Jana Sheeder

Jana Sheeder, President of 1-800 Yacht Charters. Providing The Superyacht Experience(R) since 1976. Private luxury yacht charter vacations in the Mediterranean, Caribbean, Bahamas, South Pacific, South Florida, Miami and The Keys, Italian Rivera, Belize. Megayacht charter company focused on generosity, Pay it Forward, Random Acts of Kindness, Giftivism, giving back to the ocean, to the needy, and the environment with every superyachting charter. Providing eco-friendly alternatives while on yacht charters and known for 6-star customer service, experience, and generosity. One of the original yacht charter companies.
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