Charter VAT
Value-added tax applied to commercial yacht charters, charged where the charter is enjoyed. Standard EU rates range from 8 to 22 percent depending on jurisdiction and effective use.
EU charter VAT is taxed at the place of enjoyment. The historic length-based reductions (Maltese, Cypriot, Greek lease schemes) were withdrawn between 2018 and 2020 under EU Commission infringement procedures. Effective-use approaches now apply, with pro-rata reductions documented against international-waters time. Italian charters carry 22 percent standard rate; French and Spanish standard rates apply locally. Maltese charters since the 2019 reform follow effective-use rules. Charter VAT is the operator's liability; the published charter rate is typically VAT-exclusive.