Under direction from the European Commission, French Tax Authorities announced that from 30th March 2020 a reduction on the proportion of time spent outside of French and EU waters will replace the current tax regulation governing charter contracts.
Currently charters starting in French waters qualify for a VAT lump-sum reduction of 50% of the taxable base if they cruise into international waters, even for just a short time. To access this reduction, the Captain merely had to take the yacht 12 miles offshore during a charter.
As of 30th March 2020 this directive will no longer be applied in France.
The new regulation stipulates that the French VAT will be due at its full rate, 20%, for the time spent in French and EU waters. This means that only the time spent outside of French and EU waters will be exempt from VAT.
Signed charter contracts with the first instalment paid prior to 30th March 2020 will still be subject to the previous 2019 rules and access the lump sum reduction in VAT.
If you are considering chartering a yacht this year, please contact Bluewater
urgently to ensure we can help you access the lower rate of VAT before it is too late.
Contact the Bluewater Charter Specialists
for advice and browse the yachts available for charter here