Charter managers play a vital role in the yacht charter industry, working closely with yacht owners and charter guests to plan and execute unforgettable yacht vacations. One important aspect of their job is to help reduce the VAT (Value Added Tax) on yacht charters, which can help make yacht vacations more affordable for clients. Here are some ways that charter managers can reduce VAT on yacht charters:
Careful planning of itinerary: One of the easiest ways to reduce VAT on yacht charters is to carefully plan the itinerary. For example, by avoiding certain high-tax jurisdictions, charter managers can help reduce the VAT burden on the charter. They can also help ensure that the yacht spends the majority of its time outside of territorial waters to comply with the 70% rule, which can also help reduce VAT.
Negotiating VAT discounts: Charter managers can negotiate with yacht owners to obtain VAT discounts on yacht charters. For example, they may be able to secure a reduced VAT rate for long-term charters or for repeat clients. They can also negotiate with yacht owners to include VAT in the charter fee, which can help make the charter more affordable for clients.
Use of VAT optimization schemes: Charter managers can also use VAT optimization schemes to help reduce the VAT burden on yacht charters. For example, they can take advantage of VAT exemption for non-EU residents, use of offshore companies or VAT leasing structures to optimize the VAT payments.
VAT refunds: Charter managers can help clients obtain VAT refunds on yacht charters in certain circumstances. For example, if the yacht is used for commercial purposes, such as corporate events or promotional activities, clients may be eligible for a VAT refund.
Collaboration with VAT experts: To effectively reduce VAT on yacht charters, charter managers should collaborate with VAT experts who have in-depth knowledge of the regulations in different jurisdictions. These experts can help navigate the complex VAT landscape and identify opportunities to reduce the VAT burden on charters.
In conclusion, charter managers can play a critical role in reducing the VAT on yacht charters by carefully planning the itinerary, negotiating VAT discounts, using VAT optimization schemes, obtaining VAT refunds, and collaborating with VAT experts. By doing so, they can help make yacht vacations more affordable for clients and enhance the overall charter experience.