Yacht charterers who are looking to lower their VAT (Value Added Tax) on yacht charters can benefit from cruising different countries. VAT is a tax that is levied on the consumption of goods and services in the European Union (EU), and it can vary widely from country to country. By carefully planning their itinerary and cruising through different countries, yacht charterers can lower their VAT burden and enjoy a more cost-effective charter. Here are some tips on how to lower VAT by cruising different countries:
Research VAT rates in different countries: Before planning a yacht charter itinerary, yacht charterers should research the VAT rates in different countries. This will help them identify countries with lower VAT rates and plan their itinerary accordingly.
Plan an itinerary that includes multiple countries: One of the easiest ways to lower VAT on yacht charters is to plan an itinerary that includes multiple countries with lower VAT rates. For example, by cruising through countries like Croatia, Montenegro, or Turkey, which have lower VAT rates compared to France, Italy or Spain, yacht charterers can reduce their VAT burden.
Take advantage of VAT exemptions: Yacht charterers can also take advantage of VAT exemptions in different countries. For example, in Italy, non-EU flagged yachts can be exempt from VAT if they remain in the country for less than 8 months in a year. Similarly, in France, non-EU flagged yachts can benefit from a VAT exemption if they are used for commercial purposes.
Use a VAT representative: Yacht charterers can also use a VAT representative to help them navigate the complex VAT regulations in different countries. These representatives can help yacht charterers register for VAT in the countries where they are cruising, file VAT returns, and ensure compliance with local VAT regulations.
Collaborate with a yacht charter broker: Yacht charter brokers can also help yacht charterers lower their VAT burden by planning itineraries that include multiple countries with lower VAT rates. They can also negotiate with yacht owners to include VAT in the charter fee or secure VAT discounts for their clients.
In conclusion, yacht charterers who are looking to lower their VAT on yacht charters can benefit from cruising through different countries with lower VAT rates. By carefully planning their itinerary, taking advantage of VAT exemptions, using a VAT representative, and collaborating with a yacht charter broker, they can reduce their VAT burden and enjoy a more cost-effective yacht charter.
