Will guests have to pay French VAT (TVA) when they charter a superyacht? YPI reports that changes may be happening on the superyacht charter scene in France.
“Up until the end of last year,” said Fiona Maureso Head of YPI Charter “there were just three conditions a yacht needed to satisfy to be exempt from paying French TVA.
“Firstly, that it was registered as a commercial vessel. Secondly, that it had a permanent crew, and thirdly that it was used solely for a commercial activity. As of the 1st January this year the French Government has added a fourth condition: that the vessels must be used for navigation on the high seas. And this is where the problems have arisen.”
But what does “used for navigation on the high seas” mean? The French government has not explained.
“At what point does ‘high seas’ come into play?” asks Franc Jansen, Head of YPI Management. “Twelve miles off shore? Sixty miles? And does the yacht have to actually navigate on the ‘high seas’ during the charter or is it just a question of having the capability to do so?”
The superyacht industry is attempting to get clarification and meetings are planned in London and Monaco.
YPI Group CEO, Bertrand Vogèle said “Certainly for the moment, we are not charging VAT to any of our Charter clients.”