- Operations - VAT in Spain explained

By SuperyachtNews in collaboration with Evolution Yacht Agents

VAT in Spain explained

Evolution Yacht Agents outlines a simple guide to the often misunderstood VAT laws that govern chartering and bunkering in Spain…

Value Added Tax (VAT) in Spain is a consumption tax imposed on the sale of goods and services within the country. It is a crucial 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: the 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 such as 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:

Regarding superyachts conducting 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 from the Port office, and the owner will have the right to rent out their vessel for recreational purposes once the authorization is granted by the authorities.

Charter licenses are issued by the port authority, and as your chosen yacht agency, Evolution Yacht Agents can handle the procedure on your behalf for a smooth and hassle-free experience.

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 in place for the boat and company to be exempt by following the required license regulations.

In summary, the most important part of engaging in commercial activities is to receive good advice and seek a professional who can review your complete tax status, obligations, and advantages. Evolution can provide you with this guidance and 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 can assist you with the process.

Main image credit: Evolution Yacht Agents

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