French authorities introduce VAT on yacht charters

On 25 June 2013, the French tax authority published an official notice (administrative instruction) to confirm that VAT must be applied to yacht charters commencing in French waters.

France had been notified by the European Commission that the criteria it was applying to allow a commercial VAT exemption to yacht charters was not in line with European case law (Bacino Charter Company SA case [Case c-116/10] of 22 December 2010).

In compliance with the ECJ Bacino ruling, the exemption will no longer apply to hiring and charter operations for leisure use, either with or without a professional crew, including operating the yacht on the high seas.

If you are registered and logged in to the site, click on the link below to read the rest of the Ince & Co briefing. If not, please register or sign in with your details below.

Briefings from Ince & Co

View more briefings from Ince & Co

Analysis from The Lawyer

Overview

International House
1 St Katharine's Way
London
E1W 1AY
UK
http://incelaw.com/

Turnover (£m): 93.20
No. of lawyers: 279
Jurisdiction: UK
No. of offices: 4
No. of qualified lawyers: 59 (International 50)