VAT in Spain. What it is and how it affects charter & fuel
Often, owners or crew need to figure out how a specific fiscal system works. We want to share with you how the Spanish tax system works regarding VAT in superyacht charters and bunkering.
Value Added Tax (VAT) in Spain, is a consumption tax imposed on the sale of goods and services within the country. It is a key component of the Spanish tax system and plays a vital role in generating revenue for the government. The VAT is levied at different rates depending on the type of goods or services, with three main categories: standard rate, reduced rate, and super reduced rate.
The standard rate typically applies to most goods and services, while the reduced and super-reduced rates are applied to essential items and services like food, medicine, and public transportation. The revenue collected from VAT contributes significantly to maintaining a stable economy and ensuring the government's ability to provide essential services to its citizens.
VAT applied to charter
As far as superyachts are concerned to conduct charter activities in Spain, the boat owner must have the authorization to engage in commercial activities in Spain. To achieve this, they must register with the tax authorities. Once registered with the tax agency, the charter license must be requested to Port office and the owner will have the right to rent out their vessel for recreational purposes, once the authorization is granted by authorities.
Charter licenses are issued by the port authority, and Evolution Yacht Agents, as your chosen yacht agency, can handle the procedure on your behalf for a smooth and hassle-free journey.
To register a vessel for commercial use, it is required to pay 12% of its value to the Spanish tax authorities or Hacienda. There is a system set in place for the boat and company to be exempt by following the requested license regulations.
In summary, the most important part of doing commercial activities is to receive good advice and look for a professional who can review your complete tax status, obligations and advantages. Evolution can give you this guidance and provide assistance for your commercial status.
VAT applied to fuel
Regarding taxes applied to fuel, all vessels wishing to bunker in Spanish waters will have to pay a 21% VAT if the fuel is supplied by a Spanish provider in Spain. The nearby ports where bunkering can take place while being exempt from this tax are Gibraltar, Algeria, and France where Evolution will be delighted to assist you with the process.
Get in touch with the expert team at Evolution at hola@evolutionagents.com, whether for obtaining your charter license or refuelling tax-free in Algeria, Gibraltar, and France.
Evolution Yacht Agents is the leading-edge team of professionals dedicated to providing assured and quality support and services to yachts in Spanish waters.
A full range of superyacht specialized services includes: charter license & legal advice, TPA (Vat exemption), customs & logistics operations, provisions & interior supplies, deck & engineering supplies and crew & VIP services.
