Using Data to Save Money on Your Next Yachting Holiday
The New Rules
Recently, both Malta and France have important updates relating to VAT due on both long and short term Superyacht charters (or leases). In France, the previous fixed rate reduction of 50%, bringing VAT down from 20% – 10%, is no longer accepted. Instead, the holiday maker (charterer) qualifies for a tax reduction proportional to the time spent outside EU waters throughout the charter – only if they can prove it. This brings the rules in line with the existing Italian system.
How Much Can I Save?
To put this into context, the most expensive yacht available for charter is Flying Fox (136m, 9,000GT, 2019, Lurssen), whose charter rate is currently listed at EUR 3.5 million per week. Without the reduction, the VAT for 7 days for the vessel alone would be EUR 700,000. Any reduction on this would surely be most welcomed. Even on a smaller vessel, where charter rates start at EUR 35,000 per week, the VAT adds up to a considerable sum.
What About Malta?
Further south in the Mediterranean, after years of battling with the European Commission, Malta has emerged victorious after the EC decided to close the infringement procedures for non-compliance with EU VAT rules. It is expected that from now, VAT will only apply to the time spent in EU waters which will provide significant discounts for vessels who winter in Montenegro, the Caribbean or destinations further afield.
How VV Data Can Help?
AIS is a technology which is primarily used for maritime anti-collision purposes. It is also accepted by the authorities as a method of proving navigation. Through our partner’s satellite constellation in low Earth orbit, VesselsValue has been monitoring global AIS signals since 2012. Using proprietary algorithms and data processing techniques, we automatically produce navigation reports that detail percentage of time spent in territorial and international waters for individual vessels between two given timestamps e.g. the start and end of a holiday or longer leasing period. This system has been widely adopted and well received in Italy over the past summer seasons and is another example of how data, technology and algorithms can directly benefit the maritime community through transparency.
Disclaimer: The purpose of this blog is to provide general information and not to provide advice or guidance in relation to particular circumstances. Readers should not make decisions in reliance on any statement or opinion contained in this blog.
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