Below is a brief description of the Current Status of VAT on Yacht Charters in Greece as per relevant Directives issued due to COVID-19 Measures Last year , the postponements and the return of the latest Directive as of 1/4/2021.
Please note that the following dates this will be cleared and we will soon be able to advise you on the accurate VAT Scheme in Greece for Yacht Charters during 2021.
A
February 10.2020 | Greece introduces VAT Directive A.1018/2020
Canceling every previous legislation and introduces 3 VAT Brackets as follows which cover All Greek Flag Commercial Yachts and all Greek Licensed Yachts of any type size and use or use with (All according to LAW 4256/2014 As Amended).
Bellow VAT will be finalised before February of the following the charter year and for every charter to have the VAT Authority at the TAX Office specific requirements are requested to accompany the approval application in order to prove the 60% Factor (Example AIS Tracking / Log Book Copies etc).
Thus the installation of AIS to Greek Yachts became Compulsory | Directive Attached.
VAT Brackets
-1-
VAT 24 per cent full Greek charter rate – Applies to charters that take place in Greek waters without exiting to non-EU or International waters (Staying within the six miles limit)
-2-
VAT 24 per cent – With a deduction option for time spent outside of EU waters or in International waters. This will take in to consideration all chartered days in an accounting year.
-3-
Discounted at 50 per cent (VAT 12 per cent) – This will be for yachts that spend a minimum of 60 per cent of charter time/days outside of territorial waters. (Territorial waters are considered: six nautical miles from the mainland and six nautical miles from the territorial waters of an Island).
This also applies for yachts commencing charters outside EU territory and that remain outside for more than 60 per cent of chartered days and end their charter in Greece.
Remarks
In the same Directive Article 7 Paragraph 5 Introduces Commercial yachts (Not Greek Licensed ) entering Greece from Non Eu countries under charter should pay VAT for the days they spent in Greek Waters at a rate of 24%
The VAT will be paid by issuing TAX ID to the charterer through a fiscal representative.
(TAX ID For VAT Filing and Payment POL 1113/2013 is attached)
B
May 21/05/2020 | Greece introduces POL A.1118/2020 which postpones A.1018/2020 and returns back to the following VAT Structure:
According to the instructions of the Ministry of Finance and the new support economic measures the following changes are noted.
For the period of 1/6/2020 up to 31/10/2020 VAT is reduced for the services of transport of people and their luggage from 24% to 13%
According to the decision no. A.1118 exceptionally due to the emergency and unpredictable need for the dealing with negative financial consequences connected to the appearance and spreading of coronavirus COVID-19 the decision no. A.1018/2020 (G.O.G. B’ 361/7.2.2020) is suspended from its commencement, namely the “Specialization and proof of the criterion of use and exploitation in charters of professional pleasure yachts”.
Since 24.4.2019 and henceforth for the specialization and the proof of the criterion of use and exploitation and for the calculation of the taxable value in charters of pleasure yachts of l. 4256/2014, those mentioned in the current legislation are applied proportionately up to 24.4.2019, according to the clarifications provided by the D. 1156/1997.
Therefore the former measure for the calculation of the VAT fares exemption returns depending on the boats category.
More specifically the following are applied:
The VAT (13%) in the charter agreement of professional pleasure yachts is defined as follows:
- Tourist ships that perform international trips beyond our territorial waters, when they approach foreign ports with proof are discharged from V.A.T.
- Tourist ships that perform international trips beyond our territorial waters without proving their approach to a foreign port are entitled to a 60% V.A.T. (category I) . Onwards and till 30.10 The VAT will be : 5,2 % .
- Tourist ships that depart from a Greek port and perform trips of great navigation (i.e. Piraeus, Corfu, Northern Greece, Mytilini, Crete and Dodecanese) are subject to 50% VAT discount (category II). Onwards and till 30.10 The VAT will be : 6.5 %
- Tourist ships that depart from a Greek port and perform trips of small navigation (i.e. Piraeus to Cyclades, Northern Sporades, Zante, Cephalonia, Corfu ) are entitled to 40% VAT discount (category III). Onwards and till 30.10.2020 The VAT will be : 7.8%
- Tourist ships that perform trips of limited range (i.e. trips from Piraeus to ports of Saronic and Argolic Gulf or from ports of N. and S. Euboean Golf up to Volos or between ports within the Corinth Gulf up to Patras) are subject to 13% VAT.
Where as TOURIST SHIP includes all Commercial Yachts of any type
C
On March 29th of 2021 Greece Introduces POL A.1070/2021 which Cancels POL A.1118/2020 which postponed POL A.1018/2020 and brings POL A.1018/2020 as of 1/4/2021.
So, as of 1/4/2021 Part (A) above is in force till further Notice.
Meetings for postponing POL A.1018/2020 have been held from different organizations and Unions on Friday 9/4/2021 during the first week of April with from one hand positive reactions on behalf of AADE but nothing solid or any POL of postponement.
Thus, till further notice , Part A applies .
For more information please contact us.
