Imposition of VAT on Charters in France
On 25th June, the French Authorities announced that as from 15th July 2013 all yacht charters signed or commencing on or after that date will be subject to French Value Added Tax on the cost of the same.
Arrangements for the collection of the VAT and payment to the French Authorities are now having to be considered. There are a number of agencies who have contacted us with a view to offering their expertise in providing this service.
It has been known for some time that the French Authorities would have to impose VAT on yacht charters following the Bacino case but the manner in which this would be carried out and the timescale was uncertain until this week.
The authorities are expected to provide further information with regard to the practical issues involved with the collection and payment of the VAT shortly.
In the meantime, we are monitoring such arrangements, and contacting various agencies and experts operating in France, with a view to their assisting in this matter.
Inevitably there will be costs involved in complying with the French Authorities requirements.