VAT - France

France VAT Registration Yacht

French VAT at the full rate of 20% is due on the charter fee and the delivery/re-delivery fee, if any, for charters starting from a French port or from Monaco, according to the yacht's effective cruising time inside the EU territorial waters. There will be VAT exemption on the charter fees in proportion to the time spent outside the EU. 

• EU-flagged yachts must have VAT-paid status and keep proof of this status (such as a VAT-paid certificate), although certain exceptions exist.

• Non-EU-flagged yachts have three options to achieve compliance for chartering:

1.     Importation: Non-EU commercial yachts are required to undergo importation and be in free circulation within the EU.

2.     Temporary Admission under YET regime: Under the YET regime, a Cayman Islands and Marshall Islands flagged yacht operating under "temporary admission for private use" can also engage in charter activities if certain conditions are met.

3.     VAT-paid status: The owning company also has the option to pay the VAT on the value of the yacht to French customs.