MYBA 2020 officially cancelled. Please find below an extract from the Official Communication sent by MYBA Board today and our quick view about chartering on 2020 in the Med.
“Further to our communiqué dated 5 March regarding the MYBA Charter Show, we would like to inform you that the MYBA Board held a conference call yesterday to further discuss the holding of the MYBA Charter Show in Barcelona in the current environment. The Covid-19 virus situation has evolved rapidly over the last few days and, unfortunately, developments have not been favourable. The Board therefore finds itself in a Force Majeure situation vis-à-vis its contractual obligations and considers it is best not to proceed in these unprecedented circumstances. This is undoubtedly very disappointing news, however, taking into consideration the information that is currently available and the health of our Members and all Show participants being one of MYBA’s key priorities, it is not possible to ensure the Show is organised in the safe and productive environment that we are recognised for by the superyacht industry. The MYBA Charter Show team will be sending further details to those who have already registered and working to minimise any inconvenience caused by this unfortunate development. Thank you for your patience while we were assessing the situation and we look forward to a great Show in 2021. Kind regards MYBA Board“
Well, let’s take the opportunity to make a quick summary and cast some light on what is happening in Europe and around the Mediterranean coasts. We all know that the situation of Coronavirus Disease 2019 (COVID-19) wreaked havoc on our lives. Right after China, Europe faced its first major outbreak as the number of reported cases in Italy grew from fewer to thousands in just few days. Officials locked down all the Italian Regions after a cluster of cases emerged in several towns located at the very North of Italy (nearby Milan). As a result, schools closed and sporting and cultural events were canceled. France did the same after just few weeks and schools and universities were closed on 9th March. Spain will do the same too starting by 16th March.
So all the EU countries are really dealing with this matter with every effort, conscientiously, strategically and supportively. We are confident that we will get through it very soon. In Italy we have this special figure of speech for situations like this “chi ben comincia, è a metà dell’opera” which the English know as “the first blow is half the battle“.
This is to say that the virus is spreading rapidly and the Mediterranean countries will surely get out of this nightmare before any other country around the world where the virus is starting to spread right now or has not started yet. Actually Italy is already half way and even further!
This should be a reason for all the yachting industry to feel encouraged to come to the Mediterranean for the summer season.
We really look forward to seeing our warm seas and cozy ports plenty of yachts during the summer.
We remain at your disposal for any possible clarification and please keep sending your inquiries to firstname.lastname@example.org
The 2019 edition of the Yacht Welfare VAT Guide is finally released. You can ask your copy by sending an email to email@example.com. Our Team of Lawyers and Fiscal Advisors is always available to assist you during your Charter Season in the Mediterranean Sea.
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.
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.