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V2510-17 5 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · avituallamiento

No VAT or Excise Duty exemption for beverage supplies to charter yachts

A company requested clarification on whether the supply of wine, alcohol, and beverages to yachts under charter regimes is exempt from VAT and Excise Duty. The DGT ruled that it is not, as these vessels are considered intended for private recreational boating.

The question raised

Whether the supply of wines, alcohol, and derived beverages to such vessels is exempt from Value Added Tax and from Alcohol and Derived Beverages Tax.

The DGT's ruling

The supply of provisioning products to vessels intended for chartering is not exempt from VAT, as they are not assimilated to commercial or industrial transport vessels. Likewise, yachts dedicated to chartering are not entitled to the exemption for provisioning in Excise Duties, since the object of the contract is private recreational navigation, which is expressly excluded from said exemption.

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