Clarification on Croatia charter tax situation
Dorijan Dujmic, managing partner at BWA Yachting in Croatia, speaks to SuperyachtNews.com to share several important updates on VAT on charter in Croatia for the superyacht industry.…
Having recently returned from a meeting at the Ministry of Finance in
Zagreb regarding VAT on charter and other related issues in Croatia,
Dorijan Dujmic, managing partner at BWA Yachting in Croatia, speaks to
SuperyachtNews.com to share several important updates for the superyacht
industry.
The main topics established were that VAT on charter is set at 13 per cent for charters starting in Croatia, charter in Croatia can be performed by Croatian-flagged yachts and EU-flagged yacht and third country flagged yachts (non-EU) can only perform charter if they obtain a charter licence. “This applies only for yachts over 40m,” explains Dujmic. “The cost of such a licence will not be high and according to current information available it will be approximately 300-400 euros. What we must stress is that the process of issuance will be lengthy and will most likely take up to three months.
“For this reason we are recommending that all of our clients who are third-country flagged, over 40m in length, commercially registered and intending to embark in Croatia to immediately start the process of applying for the charter licence,” Dujmic continues. “The licence will be valid for one year. The process will not only be lengthy to obtain, but the number of licences that will be granted for next season will also be limited. According to the information we have at this moment, the total number of licences that will be granted will be under 200 and will be on a ‘first come, first serve’ basis.”
To view the full article on SuperyachtNews.com please click here.
The main topics established were that VAT on charter is set at 13 per cent for charters starting in Croatia, charter in Croatia can be performed by Croatian-flagged yachts and EU-flagged yacht and third country flagged yachts (non-EU) can only perform charter if they obtain a charter licence. “This applies only for yachts over 40m,” explains Dujmic. “The cost of such a licence will not be high and according to current information available it will be approximately 300-400 euros. What we must stress is that the process of issuance will be lengthy and will most likely take up to three months.
“For this reason we are recommending that all of our clients who are third-country flagged, over 40m in length, commercially registered and intending to embark in Croatia to immediately start the process of applying for the charter licence,” Dujmic continues. “The licence will be valid for one year. The process will not only be lengthy to obtain, but the number of licences that will be granted for next season will also be limited. According to the information we have at this moment, the total number of licences that will be granted will be under 200 and will be on a ‘first come, first serve’ basis.”
To view the full article on SuperyachtNews.com please click here.
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