A Matter of Taxes
Will yacht charter clients be forced to pay Value Added Tax (VAT) this summer on the Côte d’Azur? If yes, then how much will the VAT be? We asked Claude Niek, CEO of Cannes-based CSO Yachts and a member of the Mediterranean Yacht Brokers Association (MYBA) Tax Committee to give us his best guess before a decision comes (all hope) in time for the charter season.
VAT or no VAT, That is the Question
For the rare uninitiated, VAT is Value Added Tax. For the past few years, more and more countries facing a shortage of revenue have put charter yachts under a microscope as potential sources of additional funds and began collecting VAT on charter fees.