VAT Changes for Yacht Charters in the Mediterranean 2021

By Editorial Team 9 February 2021

Changes in VAT regulations for yacht charters that start in France, Monaco or Italy have now come into effect in 2021.

If you are seeking to charter a yacht across the glittering Mediterranean this year, be aware of possible VAT changes that have come into effect in 2021 and may now apply to your trip.

The ever-evolving VAT regulations on superyacht charters in EU waters and beyond means keeping yourself up to date with developments now is key to preventing unexpected costs later. Below is our round-up of the most recent VAT protocol to keep in mind when chartering a yacht in 2021.

Beautiful pastel-coloured buildings on Italian Riviera

Whilst implementing new VAT regulations in France, Monaco and Italy were initially delayed due to the pandemic, 2021 sees this change. Now, all charters whose port of embarkation starts in these stated destinations will have VAT applied at their respective countries’ full VAT rate (and this will also pertain to any delivery or redelivery fees). The full VAT rate is applied irrespective of where the port of disembarkation is.

This means that for yacht charters that start on the tranquil shores of France or Monaco, you can expect a standard rate of 20% VAT (as well as any delivery or redelivery fees incurred).

It’s also worth remembering new COVID regulations for French waters have also come into effect this year. As of January 23 2021, all guests on board charters in the French Riviera need to provide a negative COVID result that’s been taken no less than 72 hours prior.

Beautiful sapphire blue sea on Italian coast

Meanwhile, if you intend to start your charter in Italy, a standard rate of 22% plus any delivery or redelivery fees will now apply, following changes to VAT laws for Italy charters from June 2020.

For any itineraries that involve journeying to France, Monaco and Italy, the same rules apply: VAT is charged at the rate of the origin of the charter.

For further advice about possible VAT implications and advice, contact your yacht broker.