It is well known among yacht professionals and especially those involved in superyacht chartering that the VAT regime in Spain has been always particularly tough. Spain, unlike other surrounding countries, as France or Italy, did not implement in National legislation the possibility of a lower effective taxation for charters starting in Spain and cruising into international waters, on the basis of the Use and Enjoyment principle laid down in the EU VAT Directive, resulting that charters starting in Spain have always been fully VAT taxed at 21%, the Spanish standard rate.
However, what is not so well known is that the Use and Enjoyment provision could also tax those charters starting outside the VAT area and entering the territory of the Community -Article 58.b, VAT Directive. That principle is indeed applicable in Spain. In this regard, the wording of the Spanish VAT law in force until 31st December 2020 stipulated that, among other services, the hire of means of transport made available to clients outside the VAT area would be subject to Spanish VAT on the part of the journey taking place in Spanish territory.
Source: taxmarine.com
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