Sojourn Tax in Croatia 2018

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
(18 Eur)
HRK 400
(55 Eur)
HRK 500
(68 Eur)
HRK 650
(88 Eur)
HRK 950
(128 Eur)
up to 15 days HRK 240
(33 Eur)
HRK 700
(95 Eur)
HRK 950
(128 Eur)
HRK 1200
(163 Eur)
HRK 1800
(244 Eur)
up to 30 days HRK 400
(55 Eur)
HRK 1200
(163 Eur)
HRK 1600
(217 Eur)
HRK 2000
(270 Eur)
HRK 3000
(406 Eur)
up to 90 days HRK 950
(128 Eur)
HRK 2900
(392 Eur)
HRK 3850
(521 Eur)
HRK 4800
(649 Eur)
HRK 7200
(973 Eur)
up to 1 year HRK 2000
(270 Eur)
HRK 5800
(784 Eur)
HRK 7700
(1041 Eur)
HRK 9600
(1298 Eur)
HRK 14500
(1960 Eur)

 

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.

Please note:

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 info@yachtwelfare.it.

Italy Cancels VAT Rise

Sanremo, 21st December 2017

 

ITALY CANCELS 2018 VAT RISE: VAT STAYS THE SAME

The Italian Council of Ministers has overturned plans and announced the country’s new financial measures for 2018. Italian value-added tax will not rise in 2018, although it is scheduled to increase in 2019 and 2020 asper below listed:

10% VAT will go up by 1.5% in January 2019 and a further 1.5% in 2020.
22% VAT will increase by 2.2% in 2019 and by an additional 0.7% in 2020 and another 0.1% in 2021.
Excise Tax will also go up in 2019.

Any question can be sent to info@yachtwelfare.it.


Delivery / Redelivery Fees in France

Sanremo 1st March 2017.

Please find hereby the info just released by our French partner: As you are aware, it has been EASYTAX policy since July 15, 2013, when the VAT became applicable to charter hire in France, to include any Delivery/Re-delivery fees charged to the charterer into the taxable base. This approach was based on Article 267 of the French Tax Code, which considers Delivery/Re-delivery fees as an ancillary service to the main service. Therefore this ancillary service should be treated the same way tax-wise. Over the years, there has been some confusion within the industry on this matter, with various positions taken. As a result, several of our partners have asked that we seek confirmation from the French Tax Administration on this particular point – which we did.

Some time ago, we had requested for a legal ruling from the French Tax Administration Rules and Regulations Division (“Département de Legislation Française”) to confirm the taxable regime to be applied to Delivery/Re-delivery fees. Recently, we received the ruling (Ref. D2B/1500014757D) that confirmed that such fees – regardless if they are just fuel &/or “a time package” – charged in order to put a vessel at the charterer’s disposal, EITHER before the charter from one port to another OR after the charter to reposition the vessel, are indeed constitutive of an ancillary service to the main service, and therefore are taxable under the same condition.

To quickly summarize: DELIVERY/REDELIVERY FEES ARE TAXABLE IN FRANCE

1. If the charter fees are taxed at 20% French VAT, the delivery/re-delivery fees are taxed at 20%
2. If the charter fees are taxed at 20% French VAT on 50% of the charter fees, the delivery/re-delivery fees are taxed at 20% French VAT on 50%.

For any additional info please call or email us to info@yachtwelfare.it or chartermcf@easytax.fr.
We remain at your disposal for any clarifications or questions.