France – Taxation

VAT (19,6%) applies according to EU Directive and EU territoriality. VAT for seagoing rented or leased boats is modulated according to the time spent outside EU waters. As it is quite impossible for leasing or rental companies to calculate this time proportion, boats susceptible to leave territorial waters and equiped for that can apply a uniform reduction of 50% on the VAT rate. An annual tax (see Registration area above) in force for French flagged boats above 7 m Lh, both for hull and engines, calculated on hull length and engine fiscal power. A tax (“Droit de passeport”) also applies for third countries flagged boats when the owner is French resident. Boats coming from outside EU and sailing in French or EU waters more than 18 months, have to pay customs fees and VAT (19,6%).