FAQ
An Advanced Provisioning Allowance (APA) is a prepayment that covers the operating expenses of a yacht charter. This is a standard practice in the luxury yacht charter industry to ensure that the yacht is stocked and ready for the charter guests' specific needs and preferences.
The Advanced Provisioning Allowance (APA) is an upfront payment made by the charterer, usually around 20-30% of the total charter fee. It is used to cover the anticipated running costs of the yacht during the charter period.
At the end of your charter the captain or broker will provide you with a detailed APA report of expenditures, any remaining balance will be returned to the charterer.
VAT (Value Added Tax) on yacht charters is a consumption tax that is applied to the rental of a yacht. The specifics of how VAT is applied can vary significantly based on the country or region where the yacht charter takes place.
VAT on yacht charters is a tax levied by the government on the charter fee. It is similar to sales tax and is typically included in the total cost of the charter. The rate and application of VAT can differ widely depending on the jurisdiction.
Geographical Variations:
European Union (EU): In the EU, VAT is generally applicable on yacht charters, but the rate and rules can vary from one member state to another. For example:
France: VAT is usually charged at 20% on yacht charters starting in France.
Italy: Italy applies a standard VAT rate of 22%, but reductions can apply if the charter includes cruising in international waters.
Greece: The VAT rate can be 24%, but there are reductions based on the length of the charter and the itinerary.
Non-EU Countries: Other countries around the world also have their own VAT or equivalent taxes:
Turkey: Turkey imposes a VAT on charters, typically around 18%.
Caribbean: Many Caribbean islands do not charge VAT, but there may be other local taxes or fees. Bahamas charges a VAT of 10%.
United States: The U.S. generally does not have a federal VAT, but individual states may apply sales tax to yacht charters.
Please speak with your charter broker for clarification on VAT.