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 info@1800yachtcharters.com, and we will respond right away.
Contact 1-800 Yacht Charters at https://1800yachtcharters.com/book-now-contact-us/
This entry was posted in News Educational and tagged cannes france yacht charter, South of France yacht charter, VAT, yacht charter maven, 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
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Many of her clients are still onboard their yachts enjoying their 2013 year-end St Barts yacht charter vacations. Jana Sheeder, President and Co-owner of SailAway Yacht Charters and 1-800 Yacht Charters comments. She takes a few minutes to reflect on the year that was (and offers us a glimpse of what’s to come in 2014.
Q: The charter industry still seems to be recovering from the global economic downturn of the past couple years. Did 2013 represent an uptick in the volume of charter business?
Sheeder: “Our research indicates 2013 showed significant improvement in charter revenues when compared to both 2011 and 2012. Many newly-built yachts enter the charter marketplace in 2013. These are builds that had stalled while under construction during the height of the downturn. As the global economy began to pick up, delayed construction projects commenced.
The result is a beautiful new fleet of superyacht charter vessels that hit the seas in time for the 2013 summer Mediterranean charter season.”
Q: Did the year end on an uptick?
Sheeder: “We haven’t seen any industry data yet, so we can’t speak for our competitors. We can tell you in terms of the Caribbean yacht charter marketplace, SailAway (1-800 Yacht Charters) had its strongest December in over 3 years. While the inquiries for smaller vessels did not grow, our bookings of superyachts – some of the largest yachts in the world – increased significantly.
Presently, we have the two largest charter vessels currently docked in St Barts for 9 night charters – motor yacht LAUREL (240 feet, $525,000 per week) and the Lurssen yacht charter motoryacht MARTHA ANN (230 feet, 600,000 EUROS per week).”
Q: What was the biggest change you witnessed in 2013 in the charter industry?
Sheeder: “I would have to say the ending of VAT exempt charters in France. For many years, our clients enjoyed St. Tropez yacht charters and summer vacations along the Cote d’Azur, free of the burden of VAT. That all changed in the summer of 2013 when the French yacht charter VAT went into effect. As of July 15, 2013, charterers can expect to pay an additional 9.8% for their Côte d’Azur yacht charter.”
Q: Are you optimistic as you look ahead to 2014?
Sheeder: “Our team is extremely optimistic as we focus on incremental growth in 2014. During the economic downturn, while many of our competitors hunkered down to ride out the storm, we took a contrarian approach. We focused our efforts on increased marketing. Our strategy was simple – stay in touch with existing clients and prospects. We wanted to be “easy to find” once the economy turned around.
Internally, we call it our “Tip of the Tongue” project. Clients had tightened their belts during the downturn, and we were committed to be the brand they remembered (always on the tip of the tongue) when they were ready to loosen their discretionary income belts again!
Now that 2014 is here, we are excited to announce that, for instance
The sky’s the limit! It will be an exciting, challenging, and awe-inspiring year!”
This entry was posted in News Educational and tagged Lurssen, president of 1-800 Yacht Charters, martha ann, St. Barts yacht charter, yacht charter industry, largest yachts, VAT, SailAway Yacht Charter Consultants, Laurel, Vertige, Lurssen yacht charter, industry news, Mediterranean yacht charter, year-end vacation, maven, Jana Sheeder
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