Date and decision still pending for proposed changes to the French VAT exemption on charter

A recent communiqué regarding the French Tax authorities soon-to-be-expected decision to rescind the existing VAT exemption on charter, has caused an element of confusion and misunderstanding amongst a small percentage of the yacht charter community. 

Legal advisers to MYBA the Yacht Brokers Association have been following developments in Brussels recently, and would like to reassure members – and the luxury yacht charter industry as a whole – that, as yet, no formal decision on a VAT rate amount and/or an implementation date and timeline has been made by French Tax authorities. 

While a decision in the near future is expected, MYBA would like to advise brokers and yacht charter companies looking to confirm French charter business in the short term, that they need not alter their marketing activity, or change their existing trading policies, until a final decision is known. 

MYBA advise brokers and charter agents to consider putting together a contingency plan, in anticipation of an expected change.