What is Sales Tax and VAT?

Sales tax pertains to the tax collected on the sale of an item.  VAT is a general, broadly based consumption tax assessed on the value added to goods and services. VAT applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services.

How much tax is charged is determined by the ports the vessel will cruise between, as well as the embarkation and disembarkation ports.  In most cases, the Tax and VAT is calculated against the Charter Fee only, but charters beginning in certain countries also apply VAT to APA and Delivery / Repositioning Fees.  VAT is not charged on Security Deposits.  This information is normally stipulated on the Specs or Information page of each yacht’s listing.

Tabor and Mentone will be able to advise you on the latest tax situation for any country you wish to visit.