Croatian based BWA Yachting, have been able to obtain updates on the VAT treatment and other issues related to charter yachts that intend to operate in the waters of Croatia this summer. According to their managing partner Dorijan Dujmic, who discussed the situation with the Finance Ministry in Zagreb, the main topics established were as follows:
* VAT on charter is set at 13% for charters starting in Croatia.
* Croatian-flagged and EU-flagged yachts can perform charter in Croatia.
* ‘Third country’ flagged yachts (non-EU) can only perform charter if they obtain a charter licence, but; “This applies only for yachts over 40m,” explained Dujmic. “The cost of such a licence will not be high and according to current information available it will be approximately 300-400 euros. What we must stress is that the process of issuance will be lengthy and will most likely take up to three months” he reported.
The process will not only be lengthy to obtain, but according to BWA, the number of licences that will be granted for next season will also be limited. Based on current information, they are saying that the total number of licences granted will be under 200 and will be on a ‘first come, first served’ basis.”
Dujmic mentioned that it was also important to note that non-EU flagged, commercially registered yachts under 40m in length will not be allowed to embark guests in Croatia under any circumstances. “They will only have the possibility to disembark guests within Croatia, for example, embark in Montenegro and disembark in Croatia,” he said.
Photo Credits: ‘SuperyachtFocus.com’
As with charter licensing regulations in other flag states, it is a requirement that all yachts engaged in charter activity must have a certification of technical inspection done in the last 12 months, and all yachts intending to perform charter in Croatia must appoint a fiscal representative and obtain a Croatian VAT number to the name of the yacht owning company.
“The question of whether a yacht that starts a charter outside Croatia, will have to pay VAT for the amount of days spent in Croatia and whether the 13% VAT be applicable on the Advanced Provisioning Allowance (APA) as well is still unanswered.” admitted Dujmic.
More details from: http://www.bwayachting.com