The 2019 edition of the Yacht Welfare VAT Guide is finally released. You can ask your copy by sending an email to firstname.lastname@example.org. Our Team of Lawyers and Fiscal Advisors is always available to assist you during your Charter Season in the Mediterranean Sea.
Please find below the recent NEWS released by our Croatian partner MYS Yachting.
“We would like to simplify and clarify the Sojourn Tax fee structure for private and commercial vessels in 2018 as we have noticed that there is still a lot of misunderstandings and misinterpreted information circulating in the marketplace.” Please read and note:
According to the Croatian Sojourn Tax law implemented on the 1st of January 2009 the sojourn tax is the income of Croatian tourist boards used for the improvement, development and promotion of Croatia as a tourist country.
The sojourn tax must be paid by owners of private vessels and their guests, and by the guests on board commercial vessels.
THE SOJOURN TAX FEE – FOR PRIVATE VESSELS
The private vessel owner(s) or his/her guests pay the sojourn tax for themselves and all persons spending the night on that vessel, on a lump sum basis. A vessel is defined as any vessel over 5 m in length with built-in beds, used for rest, recreation or cruising, which is not a nautical tourism vessel (charter yacht). The lump sum of the sojourn tax is paid at the vessel’s entry into Croatia, or, if the vessel is already in Croatia, prior to departure from the marina or port, and the tax is paid in the harbourmaster’s office. The harbourmaster office shall issue a sojourn tax receipt. The invoice for the paid sojourn tax must always be on the vessel, and the master of the vessel must present it upon request of an authorized person. The sojourn tax fee depends on the length of the vessel and the period of time the sailors will stay on board the vessel:
|5 – 9 m||9 – 12 m||12 – 15 m||15 – 20 m||Over 20 m|
|up to 8 days||HRK 130
|up to 15 days||HRK 240
|up to 30 days||HRK 400
|up to 90 days||HRK 950
|up to 1 year||HRK 2000
THE SOJOURN TAX FEE – FOR COMMERCIAL VESSELS (charter yachts)
If a commercial vessel is coming to Croatia after starting the charter in a non-EU country (e.g. Montenegro), or if the charter has started in Croatia, the guests on board the vessel pay a sojourn tax of 1,08 EUR per person for each night that they spend on board the vessel in Croatia.
If a commercial vessel is coming to Croatia after starting the charter in an EU country (e.g. Italy) guests on board the vessel pay the lump sum of the sojourn tax depending on the length of the vessel and the period of time the guests will stay on board the vessel (same as in private vessels).
Based on the above, we would like to advise charter brokers who are booking charters in Croatia to inform their clients accordingly, and masters of vessels that are planning to do their summer season in Croatia to speak about this to their charter representatives (e.i maritime agent, charter company) and make sure the above is understood in order to avoid incorrect payments and overcharges.
1. The crew on board both private or commercial vessels are exempt from paying sojourn taxes.
2. The payment of the sojourn tax for guests on board commercial vessels should be handled by the local charter representative (i.e. maritime agent, charter company). The master of the vessel will provide the fee to the representative from the APA prior to the guest’s departure.
For any additional clarification please do not hesitate to email us at email@example.com.
After the VAT workshop conducted during MYBA 2017 by our staff and partners please find hereby a summary of the new rules about Croatia:
1. Charter business can be performed by NON EU and EU charter companies with commercially registered yachts
2. To set up a yacht for charter business in Croatia (approx. 10 – 14 days), a charter company needs:
a) To obtain VAT and PIN numbers with the Croatian tax office. The list of required papers that must be submitted depends on if the charter company is from the EU or outside the EU.
b) To list the yacht in “E-crew” ( a central online database ) of the Croatian Ministry of Maritime Affairs. The list of documents to submit depends on the GT and LOA of the yacht.
If all the papers are in order there will no longer be a need for a technical inspection of the yacht’s firefighting and safety equipment in Croatia before the beginning of its 1st charter.
3. All non-EU flagged commercial yachts will be required to obtain a charter license. There is no longer a limit on the yacht’s length in order to perform charters in Croatia. The license will be valid for the calendar year. The number of licenses issued might be limited based on the Croatian market supply situation.
4. VAT will be charged on all commercial yachts that start charters (embark guests) in 3rd countries, on a pro-rata basis, for the time spent in Croatia. For instance, if a yacht embarks guests in Montenegro and comes to Croatia for 6 days, charter guests will need to pay Croatian VAT on those 6 days.
5. All charter contracts with an embarkation port outside of the EU, and a disembarkation port inCroatia, and which are signed before the 1st of May, will be exempt from VAT charges on a pro-rata basis for the time the yacht will spend in Croatia.
6. VAT for charter activities with overnight stay is 13%. Daily charters are 25%
7. All commercial yachts need to have proof of their VAT status in the EU when entering Croatia
8. When embarking guests outside the EU, all commercial yachts need to have a charter contract when entering Croatia; and when leaving Croatia they need to have an invoice of payment of Croatian VAT issued by its local VAT representative
9. When embarking guests in another EU country, all commercial yachts need to possess a charter contract when entering Croatia and a pro-forma invoice for VAT payment in that country issued by a fiscal representative in that country
10. When embarking guests outside the EU, EU charter companies can use their own VAT number for VAT payment in Croatia on a pro-rata basis
11. Non Eu commercial yachts who do not possess a cabotage license can cruise in Croatian territorial waters only between international ports, to and from shipyards, and only with crew on board
Some details are still being clarified by the Ministry regarding how certain points above will be processed and controlled, so get in touch with us if you plan to charter this year in Croatia.
Setting up a charter business in Croatia is a pretty simple, straightforward and quick process if you have a quality, professional representative.
For more info please download the below pdf file from our partner MYS and feel always free to contact us to firstname.lastname@example.org to get your dedicated estimate on costs.
Please find below a detailed update for 2017 released by our Croatian partner:
Part of our business is keeping up with the ever changing maritime laws and regulations in the region. So with the possibility of some important changes to charter tax potentially being instated this year, we’ve been keen to inform everyone in the industry. We were going to wait until the changes took effect before sending out this update, but after hearing conflicting information from many other people in the industry outside of the country, we decided to send it out early. It covers the main VAT regulations and charter activities in Croatia that are set to change this year. Of course, we will continue to release pertinent information as we learn more from the relevant authorities. The following are the changes we have been informed of that should come into force for the upcoming 2017 season.
VAT and Charter Regulation Changes for 2017:
1. VAT will be charged to all commercial yachts that start charters (embark guests) in 3rd countries, proportionate to the time spent in Croatia. For instance, if a yacht embarks guests in Montenegro and comes to Croatia for 6 days, charter guests will need to pay Croatian VAT for 6 days.
2. All non-EU flagged commercial yachts will be allowed to perform charters in Croatia, but will be required to obtain a charter license. There is no longer a limit on the yacht’s length in order to perform charters in Croatia. The license will be valid for the calendar year. The number of licenses issued might be limited based on the Croatian market supply situation. Please note from the above info, ALL non-EU flagged commercial yachts will be able to start charters in Croatia if they obtain a charter license and have a charter and VAT representative!
3. Commercial yacht owners and owning companies are allowed to perform charters in Croatia, either through charter companies / ship agents or if they open their own charter company in Croatia.
4. Commercial yacht owners and owning companies from the EU are NOT obliged to have a VAT and fiscal representative in Croatia, while yacht owning companies from non-EU countries ARE obliged to have a VAT and fiscal representative in Croatia.
5. Private yachts will still be able to embark and disembark their guests in Croatia regardless of flag. In cases where the owner and family members are not onboard, the Captain will have to have an authorized list of people with: 1) names of guests and, 2) length of time that these guests will spend on the yacht. This list of people will have to be authorized by the Captain’s signature and the yacht’s stamp.
6. VAT for charter activities in Croatia is still 13% for weekly charters and 25% for daily charters.
As soon as the administration finalizes and publishes the relevant information under points 1 and 2 above, we will inform you immediately. Meanwhile, if you have any questions, please do not hesitate to contact us at any time
Advice: if you are coming to Croatia this season and plan on having a busy charter season, you should start preparing NOW.
Thank you for your time and attention. All the best and we look forward to hearing from you soon.