So why do you need a VAT representative when your yacht charters in the Med?
According to EU VAT regulations, owning companies of commercial yachts wishing to charter in the EU must register for VAT in each country where their yachts will embark on charters. A VAT representative or a VAT agent (for EU companies in Croatia, France, and Italy) pays the relevant tax generated on charters to the appropriate officials on their behalf. VAT is due on short-term charters—from 1 to 90 days—in the EU country where the yacht becomes available to the charterer.
Following Brexit entering in force, French, Italian and Croatian tax authorities clarified that there’s no legal obligation for UK and IoM companies to appoint a VAT fiscal representative, only a VAT agent to register for VAT in France, Italy and in Croatia.
 Why do I need a VAT number? An owning company needs this to comply with the rules on charter in force in each EU country and pay the VAT funds due according to each EU country’s regulations. Owning companies can also use the VAT number when purchasing goods/services in compliance with regulations.
What should I look for in a reliable VAT representative? A trustworthy VAT representative ensures you are always up to date with regulatory compliances, carefully checking and analysing all aspects connected to VAT. He or she also relies on solid backing from VAT experts in case an inspection or an audit arises. This person, therefore, decreases fiscal risks. Additionally, he or she warrants that sensitive data from brokers, captains, stakeholders, and management companies are only used for expressly communicated purposes and will remain confidential.
SOS Yachting specializes in fiscal agency and fiscal representation services to EU and non-EU companies that own charter yachts operating in EU countries. They opened their first office in Italy in 2012 and has since then always guaranteed prompt, proper service. They are based in the main superyacht charter hubs in the Mediterranean: Croatia, France, Italy, and Spain. Each of their in-house VAT experts is well-connected with authorities in each country and they have more than 40 years of experience in yachting regulations and charter operations. They work with over 600 yacht owning companies all over the world and handles more than 1.700 charter contracts per year. Their mission is to take care of all VAT duties, thereby avoiding any possible risk.
4 jurisdictions in synergy. They also underline the importance of sharing knowledge with charter-industry players, to provide flawless, professional service as they all have a vested interest in seeing this industry grow and flourish, ultimately ensuring that charters operate smoothly in the main EU hubs. SOS Yachting is hosting numerous fiscal trainings and conferences during each year, some that has become key events in the yachting industry calendar before and after the charter season.
