SOS YACHTING - Fiscal representation services for yachts
Fiscal representation for yachts
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FAQ

Frequently Asked Questions


 

Do non-EU flagged yachts have to be imported and in free circulation in order to charter in Europe?

Yes, they have to be imported and in free circulation before starting any charter activity in the Med.

ITALY

CROATIA

FRANCE MONACO

SPAIN


Can the VAT rate be reduced in case of an international voyage in Italy?

Yes, according to the LOA and propulsion of the yacht

ITALY


Is “touch and go” in International waters allowed to benefit from the reduced VAT rate in Italy?

No, “touch and go” constitutes an “abuse of right”. Navigation in international waters must be logical and reasonable in the context of the charter itinerary.

ITALY


Is “touch and go” in International waters allowed to benefit from the reduced VAT rate in France?

YES

FRANCE MONACO


Can the VAT rate be reduced in case of an international voyage in France?

Yes, 50% reduction is allowed in France.

FRANCE MONACO


Can the VAT rate be reduced in case of an international voyage in Croatia and Spain?

No, in Croatia and Spain VAT rate cannot be reduced for cruising in international waters.

CROATIA

SPAIN


Is VAT due on charters starting outside EU countries on the time spend in EU waters and what is the rate?

Croatia; Yes, 13% VAT on time spent in Croatian waters France & Monaco; No
Italy; Yes, 22% VAT on time spent in Italian waters Spain; Yes, 21% VAT on time spent in Spanish waters

ITALY

CROATIA

FRANCE MONACO

SPAIN


Do I need a charter license for cruising in Croatian waters?

Only non-EU flags need to obtain a charter license.

CROATIA


Is there a Spanish charter license?

No there isn’t. There is no “national” charter license. Each region in Spain has got its own charter license and its own requirements.

SPAIN


Is it necessary to have a charter license if the charter starts in another country?

If the charter starts outside Spain the charter license will be necessary only if there will be guests embarking and/ or disembarking in Spanish waters. If the charter will only be transiting in Spain, the license is not necessary.

SPAIN


Can non-EU flagged yachts below 40 meters charter in Croatia?

Yes, they can. As of May 2017, all yachts can charter in Croatian waters.

CROATIA


Can privately registered yachts charter in Croatia?

No, neither EU or non-EU yachts.

CROATIA


What are the compliances when the Beneficial Owner uses its yacht in Croatia?

BO can use its own yacht with a charter contract in place (plus VAT).

CROATIA


Can the UBO use his/her yacht in Italy?

Yes, under a charter contract as any other charterer paying the Italian VAT due on it.

ITALY


Can the UBO benefit from a reduction on the charter fee on his Italian charter agreement?

Yes, the UBO can benefit of a reduction corresponding to the brokers’ standard commission.

ITALY


Is VAT charged on delivery and redelivery fees in Croatia?

No, there is no VAT charged on delivery and redelivery fees.

CROATIA


Is VAT charged on delivery and redelivery fees in Italy and France?

YES, if indicated in the charter contract.

ITALY

FRANCE MONACO


How long does it take to obtain a Croatian VAT number?

VAT number is issued within 7-10 days from the moment the Tax Authority receives the complete documentation.

CROATIA


Can a commercial yacht charter in Italy even if it doesn’t qualify for the ICE (Italian Commercial Exemption)?

Yes, it’s not mandatory to qualify for the ICE to charter in Italy. You can continue your charter activities but without benefitting from any VAT exemption on the purchase of supplies and services in Italy.

ITALY


Can a commercial yacht charter in France even if it doesn’t qualify for the FCE (French Commercial Exemption)?

Yes, it’s not mandatory to qualify for the FCE to charter in France. You can continue your charter activities but without benefitting from any VAT exemption on the purchase of supplies and services in France.

FRANCE MONACO


Is it possible for the Owning Company to recover VAT paid on Italian supplier’s invoices?

YES, only on invoices related to goods and services connected to the charter activity of the yacht (commercial purposes and maintenance of the yacht) and not connected to the charter’s APA.

ITALY


Is VAT due by the charterer on APA at the end of an Italian charter?

Yes, on fuel and oils and on expenses not vat paid at source

ITALY


Which companies are subject to the so-called Non- Resident Income Tax?

The owning companies who are resident in a country with no dual taxation treaty signed with Spain have to pay the so-called Non-Resident Income Tax, that is 24% on the charter income.

SPAIN


Is it possible to recover VAT for expenses done in Spain?

The owning company can recover the VAT paid to
the Spanish suppliers from the one due to the Spanish Government for the charters done. These expenses have to be related to the charter activity and the Tax Office will ask to justify them. This is only possible when there is a charter activity done in Spain.

SPAIN