VAT is the least glamorous line on a charter quote and the one that most often turns a good price into an argument. The rule is simple: VAT applies in the country where the charter takes place, at that country's rate.
The rates, roughly
As published on our FAQ: around 22% in Italy, 21% in Spain, 20% in France, 18% in Malta, and 13-24% in Greece depending on the duration of the charter. These are the working numbers we quote against. Tax rules change and edge cases exist, so the number that governs your booking is always the one written on your quote and contract, not a blog post, ours included.
Day charters
On day boats the practical question is only this: is VAT inside the advertised rate or on top of it? Both conventions exist, sometimes in the same marina. Every listing on our site states the operator's own treatment, and the quote we send shows the all in figure before you commit. If you are comparing us against another offer, make sure both numbers are the same kind of number before you decide.
Weekly charters
On MYBA weekly charters VAT is calculated on the charter fee and added to the invoice, at the rate of the cruising country. Itineraries that cross borders, say Italy into France, follow the rules of where the charter is performed, which the contract and the operator's fiscal representative handle. Greece's duration based system is the reason a longer Greek charter can carry a lower effective rate, one of several quiet reasons Greece is the value play of the Mediterranean.
Three habits that save you money and grief
- Ask for the all in number: base rate, APA estimate and VAT on one line. We do this by default.
- Never compare a VAT inclusive quote against a VAT exclusive one. It is the oldest trick in the price war.
- Keep the paperwork. VAT invoiced on a charter is real tax, invoiced properly, and serious operators treat it that way. Anyone offering to make VAT disappear is telling you something important about the rest of their paperwork.