By default, value-added tax (VAT) applies to all yacht charters in European waters. However, countries such as Italy, France, Greece, and Croatia, among others, have applied VAT reductions on charter, in certain circumstances. Those discounts no longer apply starting in 2020, according to a recent decision by the European Union. In the European Union, member
UPDATE, APRIL 5, 2019: The ECPY held yet another meeting with French customs authorities yesterday. The yachting trade organization therefore has additional clarifications regarding the tariff. 1. U.S.-built, commercially registered yachts imported before June 22, 2018 do not have to pay the 25-percent tariff if they return this year under the Returned Goods Relief program.
U.S.-built yachts planning to charter in the Med this summer will be hit with a steep retaliatory tariff. While the tax decision dates back nearly a year, captains, yacht managers, shipyards, and more report its enforcement going into effect now. As much as some details seem clear, however, others are not. Therefore, the European Commission
UPDATE, MAY 21, 2018: Megayacht crew residing in France during their yacht’s refit at a French shipyard no longer fall under the French social security requirement. You can read the full details on the Ince & Co. website. Read on for our original article. A sigh of relief echoed across France, and across the Atlantic,
UPDATE, JULY 3, 2018: There is finally some good news to report, due to the efforts of the European Committee for Professional Yachting (ECPY) and fellow yachting associations. The French government has amended the French social security system requirements, easing them for crew and the owners for whom they work. Now, only seafarers who reside
The long-anticipated application of VAT to yacht charters originating in French waters goes into effect next month, on July 15. On June 25, the Direction de la Législation Fiscale (DLF), which is the French tax authority, informed the European Committee for Professional Yachting (ECPY), an industry organization founded in 1993, that VAT would be applied