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V0289-21 18 February 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · chárter náutico

Nautical charter activities may be subject to VAT and Transport Special Tax

A Maltese company seeks advice on VAT and Special Transport Taxes applicable to its nautical charter contracts in the Mediterranean. The DGT states that such activities may be subject to both taxes and that the vessel itself may be considered an establishment.

The question raised

The question arises regarding the liability for Value Added Tax on nautical charter contracts involving navigation in Spanish waters as well as in other countries of the Mediterranean Sea, and whether the port of embarkation or disembarkation used by the vessel has any influence on such taxation.

The DGT's ruling

Regarding VAT, short-term rentals (less than 90 days on vessels) are taxable if the vessel is made available in Spain. Long-term rentals are taxable if the recipient is a business established in Spain. If navigation is partial in Spanish waters, liability must be determined in proportion to the miles sailed in national territory. Regarding Excise Duty, the vessel itself may be considered an establishment if it is the place from which the activity is carried out.

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