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Spanish Yacht Charters Now Subject Only To VAT

by Ulrika Lomas, Tax-News.com, Brussels

02 July 2013


The Spanish marine trade industry association, ANEN has welcomed the approval by the Council of Ministers of the repeal of the 12 percent registration tax on yacht charters, which had been levied alongside the 21 percent value-added tax (VAT) rate.

The repealed duty was applied on the first registration of yachts of greater than 15 meters in length. The Spanish maritime industry had argued that the imposition of VAT on top of the registration duty amounted to double taxation.

The registration duty has been repealed after proceedings were launched by the European Commission which argued that Spain's tax treatment of yacht charter arrangements contravened European Union rules including on the free movement of goods.

Carlos Sanlorenzo, the Secretary General of ANEN, commented: "The involvement and support we have had from the Directorate General of the Merchant Navy in recent years has been instrumental in achieving this outcome. The Ministry of Finance has now given the green light for the elimination of the registration duty on charter sailing, removing the onerous combined tax rate [of 33 percent] in recognition of the benefits to the economy of pleasure yachting, and the sector's tax contribution."

According to ANEN, the recreational boating industry in Spain directly and indirectly supports 107,000 jobs, and generates gross value added to the economy worth approximately EUR5.69bn annually.

TAGS: Finance | VAT rates | tax | business | marine | European Commission | value added tax (VAT) | law | Spain | trade | services | VAT goods & services classification | Europe

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