NEW VAT rules for luxury yacht charters to apply within EU in 2020?

NEW VAT rules for luxury yacht charters to apply within EU in 2020?

A variety of VAT charges are currently being applied on luxury yacht charters in the European Union with countries such as Italy, Malta, France and even Greece and Croatia all having different rules and different rates of VAT.  EU Commission is now moving towards a flat rate it seems and a decision on this is imminent ...


Changes on application on VAT may occur very soon in Europe.  This in particular in relation to the current reduced VAT lump sum taxable base on charter contracts.  The EU Commission’s goal is apparently to harmonise rules abolishing the laws currently in place in Italy, France, Malta and Cyprus for the reduction of VAT on the taxable base for charter contracts and apply the general criteria contained in articles 56 and 59a of the EU VAT Directive 2006/112/CE.


Experts in the industry point out to the intention of the EU Commission, which is to allow for the future, a reduction of VAT on charters only on an actual calculation method in accordance with the provisions of article 59a:

“In order to prevent double taxation, non-taxation or distortion of competition, Member States may, with regard to services the place of supply of which is governed by Articles 44, 45, 56 and 59:

(a) Consider the place of supply of any or all of those services, if situated within their territory, as being situated outside the Community if the effective use and enjoyment of the services takes place outside the Community;

(b) Consider the place of supply of any or all of those services, if situated outside the Community, as being situated within their territory if the effective use and enjoyment of the services takes place within their territory.

However, this provision shall not apply to the electronically supplied services where those services are rendered to non-taxable persons not established within the Community”.

The Italian Ministry of Economics and Finance (MEF) and the French Authorities are working with the EU Commission in order to outline new guidelines to be put in place before the start of the yacht charter season 2020. 

Each EU country has VAT Experts who are involved with the Authorities in the discussion to get information and instructions before the end of 2019 and we hope to be able to follow such updates that are expected in the next couple of weeks.

It seems that the direction of the discussion goes to the application of a possible pro rata reduction for cruising outside of European waters according to the time or to the cruising miles spent in International waters as per above mentioned article 59a.

We are not quite certain what rules are applicable now, but are increasingly aware of the charter market’s need of receiving responses and guidance in order to plan the next charter season in the Med putting owners and charterers in a legal position.  We will therefore recommend to each client to put in place a Security Deposit and request a clarification in writing or directly on the contract that VAT regulation may change and a difference of VAT should be due by the charterer on the contract in 2020.

In case you are interested in chartering a luxury yacht or buying one of the PUCCINI YACHTS through us as UK Exclusive Dealers, do let us know by filling out the CHARTER REQUEST FORM or send us an email to now.  

Disclaimer:  The information provided here are made as a general guide only, made to give a broad description and latest news of the shown yacht or yachts. They are not intended to constitute part of an offer or contract. The details of the luxury yacht or yachts displayed on this page are made merely for informational purposes, and the yacht or the yachts are not necessarily available for yacht charter or for sale, nor is she or they represented or marketed in anyway by All details, including any photographs, measurements, plans and specifications mentioned, are given as a guide only and should not be relied upon for the purchase or charter of this yacht. The copyright of all details, photographs and deckplans remains the property of their rightful owners or their chosen representatives.

This news refers to:


Type: Motor Yachts | Built:2020
Length: 82 feet | Crew: 0
Guests sleeping:0 | Speed: 22
read more

One way gullet charters between Aeolian and Egadi Islands !


Looking for a luxury gulet charter in Sicily!? Keen to visit both Egadi and Aeolian islands at the same time!? How about a 2-week charter from Capo d’Orlando to Palermo as that would allow you to visit the two most spectacular of Mediterranean archipelagos.  With MV BUBU, 16 guests can enjoy a lovely Italian themed cruise ...

PUCCINI YACHTS for sale; from 39-110ft including the prestigious JING models!


You can now commission an order for one of the new models of PUCCINI YACHTS.  As an exclusive dealer in the UK, we are best placed to provide suitable advice and arrange a purchase of your new luxury motor yacht, including hybrid and fully electric models from 78ft onwards.  Request your quote & specifications now ...

Luxury ALEGRIA 67 sailing catamarans such as SY SERENISSIMA charter in the Mediterranean !


Highly modern, sleek and exremely comfortable both at anchor as well as during sailing, new Alegria 67 catamarans are as of immediatley available for private yacht charters in the Mediterranean. SY SERENISSIMA is one of the best and she is based in Athens or Mykonos for charters around Cyclades ...

Luxury Lagoon Seventy8 powercat cruises in the Adriatic during Summer 2020!


One of the first ever, Lagoon 78 motor yacht DOUBLE DOWN is available in the Caribbean once again.  One of a kind, she accommodates 6 guests in 3 luxuriously appoinited cabins, including a master suite with private balcony, his and hers closets and spacious private seating area.  Book her in the Adriatic during summer 2020 too ...

Mediterranean based Sunseker Yacht 40m charters in the Greek Islands !


 is a 131ft Sunseeker, usually based in Athens and avialable for private yacht charters across the Greek islands.  To enjoy your next yachting getaway in Greece, you would only need to find suitable time, contact us at SuperSailYachts and start enjoying the ultimate yachtcharter holiday in the East Med ...

Sandy and Doug chartered a luxury ASTONDOA 105, a 31.5m super yacht in South of France. A meticulously planned charter went exceptionaly well and we even arranged for a JET SKI instructor to come on board so the clients could get their Jet Ski licences.

All rights reserved by © 2013

logo A2A logo