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50 shades of VAT

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June 2017

If I have not chartered before, can I qualify for the FCE?

Guidelines for new builds and yachts that are new to the charter market


If you did not charter in French or Monegasque waters last year but plan to do so this summer, you can qualify for the French Commercial Exemption “by anticipation”.

This means that you will automatically be granted a VAT exemption on the purchase of supplies and services in France and Monaco on the assumption that you will comply with all provisions of the FCE in 2017.

However, if your charter itinerary fails to meet the 70% rule, you will have to pay VAT on all supplies and services purchased duty-free in France and Monaco in 2017 and you will not be exempt from VAT in 2018.

If you do comply, you will be VAT exempt also in 2018.
So, if you intend to apply the FCE by anticipation (in addition to the administrative requirements), you must be sure your chartering schedule will allow you to meet the 70% rule.