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Charter Terms - Western Med. Terms (W.M.T); Mediterranean Yacht Brokers Association (MYBA Terms)
Guide: How to calculate the approximate cost of a charter on W.M.Terms (MYBA Agreement)
This is a guide only. A 'rule of thumb'.
Refer here if you are chartering a Gulet in Turkey.
| Example: M.Y. 'Example 1' Commercially Registered Vessel - VAT Exempt |
Example: M.Y. 'Example 2' |
||
| $30,000 | <=> Charter fee | $30,000 |
for 7 x 24 hour periods. |
| $ 6,000 + | <=>APA @ 20% of the charter fee. | $ 6,000 + |
* Advance Provisioning Allowance APA (food, bar, fuel, marina charges, port fees etc. See charter terms WMT) |
| $36,000 | <= Sub Total | ||
| Zero |
|
$ 5,880 | <= VAT (TVA) ** in France at 19.6% (N.B. This is not payable on Commercial Register Vessels. See other notes below **) |
| $36,000 | <= Approximate Charter Fee on a Commercial Register Vessel or an area where Zero VAT is payable (e.g. Turkey and Caribbean). | $41,880 | <= Approximate Charter Fee on a vessel where VAT is payable. |
| The above figures would be a fair estimation for the number of guests specified by the yacht, for a week. This is a guide only. A 'rule of thumb'. | |||
| Some vessels offer All-Inclusive programmes | |||
| * As a guide we use 20/25/30% of the charter fee to estimate the final cost of the charter. Naturally the % depends on how much and the standard of food, wines; and the fuel consumption of the vessel etc. Should any part of this allowance (APA) not be used, the funds are returned to the charterer. Conversely if there is a shortfall the charterer would correct this. The captain keeps all receipts and orders for your inspection and agreement prior to departure. | |||
| ** In France IVA 19.6% (VAT), it is collected a matter of course. To date, in Italy or Spain, the authorities have not yet put a mechanism in place to collect VAT/IVA. In all cases (accept on the Commercial Register vessels), the charterer must pay the VAT on the charter fee and if not collected by the fiscal authorities after 90 days, it is returned to the charterer. If the VAT is requested and paid to the fiscal authorities, full documentation is supplied to the charterer. | |||
| N.B. 1./ In some cases a vessel positioning fee is levied (delivery fee). 2./ The price of fuel may well be higher in the year of charter and should this be the case, we expect power vessels will request an APA of 25/30%. | |||
Refer here if you are chartering a Gulet in Turkey.
It is important, in order to budget correctly for a charter, to understand the terms under which the yachts operate. Please do not be confused by these terms. We will gladly explain in more detail. An outline of the terms is as follows:-
The Charter Fee includes the charter of the yacht with all its equipment in working order, tools, stores, cleaning material and basic consumable stores for engine-room, deck and cabins, etc., the crew's wages, food and the insurance of the yacht for marine risk and third party claims and the crew for employer's liability insurance. (If the yacht is not on MYBA terms then crew food may be charged extra)
The Charterer will be charged extra, at cost to the yacht, for all other expenses, which is generally covered by the APA (Advance Provisioning Allowance). These expenses include fuel for the yacht, fuel for the ski-boats or other tenders, food for the charterers, wines, beers, spirits and soft drinks for the Charterers, other consumable stores, berthing dues and other harbour charges away from the yacht's own berth, including pilotage fees and charges for water and/or electricity taken from the shore, laundry, telephone, fax or telex via Satcom, Radio Telephone or telex costs, hire costs of special equipment placed on board at the request of the Charterer.
IMPORTANT NOTES
A. Occasional variations between the terms offered by different yachts under the same main title do exist. For instance, one yacht may generally work on MYBA-WMT but also includes a small fuel allowance. However, the majority of yachts now operate under the well established and widely accepted MYBA Charter Agreement, sponsored by the Mediterranean Yacht Brokers Association and adopted by the American Yacht Charter Association.
B. Legislation now exists in the European Union requiring all yachts operating in the national waters of the Union (in this narrow context we are interested in France, Italy, Spain and Greece) to collect Value Added Tax (VAT/TVA/IVA, etc.) on all charters at rates which vary between 4% (Greece) to 16% and 20.6% of the Charter Fee. Under EU Law this is payable by the Charterer. Currently in French waters the VAT is collected in every instance and full documentation is supplied to the charterer.
Italy and Spain appear to be taking an opposite approach and to date all VAT collected, at the time of the charter, has been returned to the charterer after 90 days, unclaimed by the fiscal authorities. This may change in 2001, but not expected at this stage.
Yachts which have been placed under a Semi-Commercial Registry are not be required to collect the tax. This is currently under review, so do please check with us for up-to-date information.
C. Due to U.S. Coastguard requirements some U.S. flag yachts operate under the demise charter agreement.
Once you have discussed with us the various types of yacht, locations and terms under which the yachts operate, we will be ready to firm-up your booking. This occurs in stages and is quick and relatively painless (except for the transfer of funds of course!).
One factor we feel to be of extreme importance is that of insurance. Please pay special attention to the following recommendation:-
Cancellation and Curtailment Insurance is available on request to cover the loss of Charter Fee if a charter has to be cancelled by the charterer for genuine reasons. This is available on a quotation basis. This is highly recommended.
Personal Accident and Medical Insurance plus Personal Effects Insurance is also essential and is not included in the charter fee.
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In the United Kingdom: International TEL: ++44 20 7580 3447 FAX: ++44
20 7580 3446. |
In France: International TEL: ++33 2 51 00 17 73 FAX: ++33
2 72 68 55 73 |
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