VAT (Value Added Tax) ranges from 13% to 22% depending on the European country where your charter occurs. A charter in France adds 20% to the base price; Italy, 22%; Greece and Croatia, 13%. If your yacht exits the European Union (e.g., Spain to Morocco), VAT suspension regimes may apply, reducing total cost. Current as of January 2026 for international charterers.
Table of Contents
- Why VAT exists on yacht charter
- VAT rates by country
- How VAT is calculated
- VAT suspension for EU-exit routes
- How to minimize VAT costs
- FAQ
Why VAT exists on yacht charter
VAT is a mandatory tax throughout the European Union. Any "service supply"—including yacht charter—within the EU is subject to VAT. The yacht owner pays VAT to the local government but may pass it to the client. For non-EU charterers (like Brazilians), VAT is still charged, though theoretically you might qualify for "VAT suspension" in specific contexts—but the practical application is complex.
VAT is always added to the final price. If a charter costs EUR 150,000 base in Greece (13% VAT), you pay EUR 150,000 + EUR 19,500 = EUR 169,500.
VAT rates by country
| Country | VAT | Notes | Save money? |
|---|---|---|---|
| France | 20% | Mandatory if charter departs/returns from French port | No |
| Italy | 22% | Highest in EU; mandatory if charter departs/returns from Italian port | No |
| Spain | 21% | Middle rate; similar to Italy | No |
| Greece | 13% | Lowest in EU; mandatory if charter departs/returns from Greek port | Yes |
| Croatia | 13% | Lowest; mandatory if charter departs/returns from Croatian port | Yes |
| Portugal | 23% | Highest in EU; favorable for VAT suspension via Morocco | Depends |
| Turkey | 18% | Outside EU; equivalent KDV (consumption tax) | Depends |
| Morocco | Exempt | Outside EU; VAT may be suspended on EU–Morocco routes | Possible |
Rule 1: If charter is ENTIRELY within the EU - VAT mandatory, at the rate of the country where the yacht starts - Example: departs Portofino (Italy), returns to Portofino = 22% Italian VAT - Example: departs Hvar (Croatia), returns to Hvar = 13% Croatian VAT
Rule 2: If charter DEPARTS the EU - VAT can be suspended (no longer charged) - Condition: yacht must physically exit an EU port (e.g., Portimão in Portugal) and enter a non-EU port (e.g., Ceuta in Morocco, or Turkey) - Documentation: broker completes "VAT suspension form" and submits to local authorities
Rule 3: If charter is in a NON-EU country - Turkey: 18% KDV (equivalent to VAT) - Morocco: exempt (no tourism tax on yacht charter) - Egypt, Cyprus: complex; verify with broker
VAT suspension for EU-exit routes
The real opportunity to save on VAT is a charter that exits the EU.
Example 1: Spain → Morocco route - Departs Portimão (Portugal, in EU) - Navigates to Morocco (outside EU) - Returns to Portimão - VAT: suspended (exempt) - Savings: EUR 150,000 × 23% (Portugal) = EUR 34,500 saved
Example 2: Greece → Turkey route - Departs Rhodes (Greece, in EU) - Navigates to Turkey (outside EU) - Returns to Turkey or Rhodes - VAT: suspended (exempt, if documentation is correct) - Savings: EUR 150,000 × 13% = EUR 19,500 saved
Requirements for VAT suspension: 1. Yacht must physically depart the EU (enter international waters or non-EU port) 2. Broker completes "VAT Suspension Form" or equivalent (country-specific) 3. Local authorities issue suspension certificate 4. Yacht must return (returns to same marina)
In practice, VAT suspension is viable if you plan itineraries touching Morocco, Turkey, or other non-EU destinations. It's not a "tax trick"—it's recognized EU law.
How to minimize VAT costs
Option 1: Choose lowest-VAT country - Greece and Croatia: 13% (versus 20–22% in France/Italy) - Savings: EUR 150,000 × 9% (difference) = EUR 13,500
Option 2: Include non-EU destination - If you visit Morocco, Turkey, or Egypt, suspend VAT - Savings: 13–23% depending on origin country
Option 3: Broker negotiates "VAT inclusive" pricing - Some yachts offer "price includes VAT" (pre-discounted) - Others charge VAT separately (easier to audit, fewer surprises at end) - Clarify with broker at initial contact
FAQ
Is VAT included in the price the broker quotes?
Rarely. Brokers quote "base" price and advise VAT separately. Always ask: "Is this price with or without VAT?" This changes by 13–23%.
Can I claim VAT refund later as a tourist?
No. VAT refunds ("VAT back") apply to physical goods (clothes, jewelry, purchases), not services (charter, hotel, airfare). You pay full VAT.
If my contract is with a Brazilian yacht owner, do I still pay European VAT?
Yes. EU VAT is based on where the service occurs (where the yacht is located), not who sells it. If the yacht is in Portofino (Italy), you pay 22% Italian VAT regardless of whether your broker is Brazilian or Italian.
Can I request an "invoice without VAT" to bring back to Brazil?
Not legally. In the EU, if the service occurs within the EU, VAT is mandatory. There is no "VAT-free invoice" for final consumers using the service in the EU. (This works for B2B within the EU, not tourists.)
Which destination offers the lowest total cost including VAT?
Greece or Croatia in shoulder season (May/June, September/October). 13% VAT + 20–35% cheaper rates than peak = total savings ~30–40%.
If charter starts in Greece and ends in Italy, which VAT do I pay?
Greece's (13%), because it's the country where the charter "begins" (where the supply starts). To pay Italian VAT, you'd have to pick up the yacht already in an Italian port—but then it would be a new charter.
Is a "VAT Suspension Document" hard to obtain?
No, if your broker is experienced. Broker completes the form, submits to local tax authority, and obtains certificate in 1–2 weeks. No extra cost. Condition: yacht must physically exit the EU and return.
How much do I save with VAT suspension to Morocco?
If your charter costs EUR 150,000 in Portugal (23% VAT), suspension saves EUR 34,500. Morocco is viable: 2–3 days sailing from Algarve (Portimão to Tangier, 160 nm).
What about short charters (3–5 days)?
Standard VAT still applies, even on short charters. No reduction by duration. VAT suspension applies equally to 7-day or 14-day charters, provided you meet the EU→non-EU condition.
Can I charter in Turkey and avoid VAT?
Turkey charges 18% KDV (local consumption tax, equivalent to VAT). No suspension because Turkey is neither EU nor a valid suspension destination—local tax always applies. Greece–Turkey route offers only ~5% savings (13% Greece vs. 18% Turkey minus suspended VAT = marginal economy).
If I cancel the non-EU routing before leaving port, do I pay VAT?
No. If a route is planned as EU→Morocco but the charter is cancelled before yacht departs, you pay standard VAT, not suspended VAT. Suspension documentation requires the yacht to physically exit and return to the EU.
CTA — Ask your broker about VAT options
When requesting a quote, always ask: "(1) Is this price with or without VAT? (2) What VAT applies to this route? (3) Can we suspend VAT by including Morocco/Turkey?" Clear answers save tens of thousands.
Continue exploring: APA Explained: What the Advance Provisioning Allowance Really Covers · The MYBA Charter Agreement: What Every Charterer Should Understand · How Much Does It Cost to Charter a Yacht in the Mediterranean in 2026
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