Gulet Charter VAT Explained

How charter VAT works, in one minute

Value Added Tax (VAT) on a yacht charter is calculated on the published charter fee, and the applicable rate is determined by the country where your charter starts, not where the gulet is registered. For a single-country cruise this is straightforward. For an itinerary that crosses borders, the VAT is normally apportioned pro-rata across the days you spend in each country's waters, and the central agent provides that breakdown.

One point causes most of the confusion: some destinations quote VAT-exclusive (the rate is shown as a separate line so you can see exactly what drives the total), while others quote VAT-inclusive (the tax is already baked into the headline number). Knowing which convention applies is the difference between an accurate like-for-like comparison and an unpleasant surprise. We confirm the exact figure with you at quote time.

Turkiye: 20% KDV, added on top

For a Turkish gulet, 20% Turkish KDV applies and is added on top of the charter fee. It also applies to the per-person food (provisions) package. This is the VAT-exclusive convention: the charter fee, the provisions package and the 20% VAT are shown as three separate lines so the total is fully transparent.

You may read elsewhere that a 0% exemption exists in Turkiye for foreign-flagged commercial yachts. That industry-level exemption does not apply to our fleet, which operates under Turkish commercial registration, so 20% always applies. Because cruising fuel is already in the gulet rate, there is rarely a separate provisioning allowance to tax, so in practice the items attracting VAT are simply the charter fee and the provisions package (see our dedicated guide on what is included in a gulet charter).

• Rate: 20% KDV, added on top of the published charter fee.
• Also applies to: the per-person provisions (food) package.
• Quoting style: VAT-exclusive, shown as a separate line.
• The 0% foreign-flagged exemption does not apply to our gulets.

Croatia: 13% PDV, already included

For a Croatian gulet, 13% Croatian PDV applies to charters starting in Croatia within EU waters, and the published weekly rate is VAT-inclusive. In other words, the 13% is already in the headline number. Do not add it again.

This is the opposite of the Turkish convention, so it matters when you compare quotes. A Croatian rate that looks higher at first glance may already contain its VAT, while a VAT-exclusive quote elsewhere does not. When you weigh a Croatian gulet against a Turkish one, ask us to walk you through the all-in figures side by side so you are comparing true totals. Food, drinks and port fees in Croatia sit outside the headline rate and are itemised separately as normal.

Greece: 9.6-12% with a licence, or 24% without

Greece is the destination where VAT varies most, and it is the single biggest variable in a Greek quote. The standard rate is 24%. However, a gulet that holds a Greek charter licence qualifies for a reduced effective rate of 9.6-12% on qualifying itineraries (the precise figure depends on time spent in international waters). A gulet without that licence pays the full 24% on the charter fee and on the food package.

The swing is large enough that it should never be assumed: the difference between, say, 12% and 24% on a substantial weekly rate runs into thousands of euros. For that reason we always confirm a gulet's licence status with the operator before quoting Greek VAT, and most gulets in our Greek fleet do hold the licence.

• With a Greek charter licence: reduced effective rate of 9.6-12%.
• Without a licence: the full 24% applies, on the fee and the food package.
• Always confirm licence status before relying on any Greek VAT figure.

Greece also has a small cruising tax: TEPAI

Separately from VAT, Greece levies TEPAI, a pleasure-craft cruising tax charged on every yacht in Greek waters. It is calculated per metre of yacht length per day (monthly registration is also possible). The operator handles the registration and payment, and the cost passes to you, either bundled into the rate or shown as a clearly itemised line in your proposal.

TEPAI is modest relative to the charter fee, but it is a genuine cost, so we always make clear in each Greek quote whether it is included or added. If your gulet is Turkish-flagged and cruising from Turkiye into the Greek Dodecanese, a specific cross-border arrangement applies: the charter must start and end in a Turkish port, VAT remains 20% Turkish KDV (Greek VAT does not apply to a Turkish-flagged vessel), and a GT-banded TEPAI applies (a per-day rate by gross tonnage across the charter, plus a fixed base fee).

Crossing borders, and other Mediterranean rates

On a multi-country itinerary the VAT is apportioned pro-rata by the days spent in each jurisdiction, with the rate of each country applied to its share. Rather than estimate this yourself, ask the central agent for their breakdown on the proposal.

A few neighbouring rates are worth knowing for context. Montenegro is 0% on charters originating there, but if the route enters EU waters such as Croatia, EU VAT applies for those days. Elsewhere in the Western Mediterranean: Italy is 22%, Spain is 21%, and France is 20% (with a reduced 10% available for itineraries that include international waters). The contract framework differs too: Turkish gulets use our own in-house terms, while Croatian and Greek gulets are typically signed on the MYBA Charter Agreement, with the regional VAT treatment written in so it is never double-charged (our dedicated guide on how a gulet charter works covers the contract and payment schedule in full).

What to ask before you book

VAT is rarely the largest line on a charter, but because the conventions differ by country it is the easiest to misread. A short checklist keeps any quote honest and comparable.

• Which country sets the VAT, and what is the rate? (It follows your embarkation point.)
• Is the rate added on top, or already included in the quoted price?
• For Greece: does the gulet hold a Greek charter licence (9.6-12%), or not (24%)?
• For Greece: is TEPAI included in the rate or added as a separate line?
• For a multi-country route: how is the VAT apportioned across the days in each country?
• Does the VAT apply only to the charter fee, or also to the food/provisions package?
• Will the exact, confirmed VAT figure be itemised on my written proposal?