The French Direction de la Législation Fiscale (DLF) has now announced what we were expecting for months: A VAT rate of 19.6% is applicable to all yachts charters starting in France with effect from July 15th 2013.
This leaves Europe with very few countries exempt on VAT when chartering a yacht. Montenegro, Turkey (with restrictions) would be only ones. This 19.6% seems like a high rate if we compare it to Italy with only a 6.3% or Greece with aprox. 6.5% although Spain is still on the top with a 21% VAT on all yacht charters starting in Spanish waters.
France has accepted a 50% reduction on the VAT rate for those yachts who sail outside French waters during their yacht charter. This bring is to a 9.8% VAT which definitely seems more attractive for yacht charter customers than the regular 19.6%
If you were considering chartering a yacht this calendar year, take advantage before this new rule applies, tie up you yacht charter contract before July 15th and save the 9.8% VAT on it.
World Yacht Group is ready to assist and advise you booking your yacht charter in St Tropez, Cannes, Monaco, etc...