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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', VAT Payable |
||
| $40.000 | <=> Charter fee | $40.000 |
for 7 x 24 hour periods. |
| $10.000 + | <=>APA @ 25% of the charter fee. | $10.000 + |
* Advance Provisioning Allowance APA (food, bar, fuel, marina charges, port fees etc. See charter terms WMT) |
| $50.000 | <= Sub Total | ||
| Zero |
|
$ 1.800 | <= VAT (TVA) ** in Greece at 4.5% (N.B. This VAT rate depending on the rate payable by the vessel) |
| $40.000 | <= Approximate Charter Fee on a Commercial Register Vessel or an area where Zero VAT is payable (e.g. Turkey and Caribbean). | $51.800 | <= Approximate Charter Fee on a vessel where VAT (Greece) is payable. |
| The above figures would be a fair estimation for the number of guests specified by the yacht, for a week. The % APA - this is a guide only. A 'rule of thumb'. | |||
| Some vessels offer All-Inclusive programs | |||
| * As a guide we use 20/25/30/35% 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 Greece VAT at 4.5%, it is collected as a matter of course. In Spanish waters, vessels that are VAT paid and legal to charter collect 16% VAT. | |||
| N.B. In some cases a vessel positioning fee is levied (delivery fee). | |||
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. We must stress the Government Tax Offices in 2015 are thinking up new ways of collecting VAT. THIS IS ONLY A GUIDE. Most all charter yachts working in the European Union (EU Flags) are now Commercially Registered and VAT exempt o purchases. As of early 2015 Commercially Registered yachts will not charge VAT when chartering in French and Italian waters. In Greece, Greek Flag vessels are collected VAT at 4.5% (depending on the local VAT status this may be a little higher). Only Spanish Flag vessels may charter in Spanish Waters and VAT is collected at 16% of the Charter Fee. Where VAT is payable full documentation is supplied to the charterer.
C. In Turkey and the Caribbean VAT is not collected on Foreign Flag vessels. Turkish Flag vessels operating in Turkey include VAT in the charter fee.
All 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.