VAT regime
The framework under which value-added tax is paid (or relieved) on a yacht's purchase, importation, and operation. Choices include Spanish IPR, French commercial exemption, Italian leasing, and Maltese.
The applicable VAT regime depends on the yacht's flag state, the owner's residence, the area of operation, and whether the yacht is operated privately or commercially. EU member states harmonised their charter VAT treatment under Council pressure between 2018 and 2020; length-based reductions were withdrawn and replaced with effective-use approaches.