VAT on short term charters is calculated depending on time spent within/outside EU waters (as of Nov 1, 2020)

Until now, this assessment, which could result in particular from the terms of the rental contract, had to be corroborated by all means of proof. However, the French tax Authorities were accepting that lessors who experienced difficulties in making a real assessment of the proportion of time spent outside EU waters and regardless of the type of vessel, apply a flat base reduction of 50% on the taxable basis.

Since 1 November 2020, evaluation of the time spent outside EU Waters has to be proven by all possible means. For those vessels equipped with Automatic Information Systems, AIS data shall be the main mean of proof accepted by the Administration: the data recorded by this system are presumed to be conclusive and can only be called into question by the administration in the event of fraud relating to this system.

Source lrf.fr

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