Few topics generate more confusion on a yacht than tax on alcohol. Crew hear that one supplier "just does not charge VAT", that a yard is "bonded", or that a foreign flag means no tax, and the captain is left to find out which of these is true. The honest answer is that wine, Champagne and spirits are excise goods, the rules are stricter than for ordinary provisions, and the treatment depends on where the goods physically go and who is authorised to receive them. This guide explains the four positions we apply to every order from France, so that you know what to expect on a quote.
This is a practical explanation of how we treat orders and not tax advice. Your accountant, management company or agent should confirm the position for your vessel, and the full detail is on our tax-free wine supply for yachts page.
What decides the tax: not the flag, not the owner
It is tempting to think that a foreign flag, a non-EU owner or an invoice addressed to a company abroad changes the result. It does not. The treatment follows the physical destination of the goods and the authorisations held by whoever receives them. That single idea explains most of the surprises crew meet.
The four positions
1. Delivery outside the European Union: export
If the delivery address is outside the EU, the sale is an export. French VAT and duty do not apply, and the goods leave under an export declaration with supporting paperwork. Anything the destination charges on arrival, such as local VAT, import duty or agent's fees, is a matter between the vessel and its agent there. A few territories that are part of the EU politically but outside its VAT and excise area, the Canary Islands being the usual example, are treated in the same way. This is the route for Caribbean deliveries, which we cover in our guide to crossing the Atlantic with a yacht wine cellar.
2. Tax-free ship's stores
EU law allows goods supplied as stores to a qualifying commercial vessel to be free of VAT and duty. It is the only way to put wine on board inside the EU with no tax, and the conditions are strict. In summary, the vessel must be commercially registered, employ a permanent crew, have a valid charter contract in force with the goods for consumption during it, leave port within 48 hours of delivery and have a customs agent available at that port. We need the documents before the order, 48 hours' notice and a request at the time of ordering. Tax cannot be reclaimed afterwards. Customs agents charge a fee, so the route is only worth the effort when the tax saved clearly exceeds it; the page above gives current figures. It is not available everywhere, and at the time of writing it is not possible in Spain.
3. Business to business inside the EU
For ordinary goods a valid VAT number from another member state is enough to zero-rate a sale. Alcohol is different, because the movement itself must be authorised under the excise system, separately from the VAT. Buying from us as a business inside the EU therefore needs two numbers: a valid EU VAT number and an excise authorisation, such as certified consignee, registered consignee or tax warehouse, valid in the destination country. A VAT number on its own is not enough. If you do not hold these, your yacht agent, shipyard or bonded store may, in which case we can deliver to them and they handle the onward move.
4. Everything else inside the EU: destination VAT
This covers most yacht deliveries and is the correct treatment, not a fallback. The place of supply is the country of delivery, so we charge that country's VAT and declare it through our own One Stop Shop return, and the destination excise is settled on our side too. An order to a yacht in Italy carries Italian VAT, one in Cyprus carries Cypriot VAT. The standard rates differ widely across the Mediterranean, from the high teens to the mid twenties per cent, and the rate that applies to you is always the one on your quote and invoice. If anyone at the destination asks for the VAT a second time, stop and send the request to us first.
Shipyards, refits and new builds
Yards often tell crew that deliveries are "tax free" or "bonded". Sometimes that is right about the refit and wrong about the wine. A customs procedure such as temporary admission suspends tax on the vessel and the works, but provisions are consumed and not installed, so they generally fall outside it. A customs authorisation is also not an excise authorisation. Ask the yard in writing which procedure the vessel is under, whether it covers consumable provisions, and for its excise authorisation number if it has one.
New builds that will leave the EU on delivery are sometimes treated as exports, but only when the yacht's agent is running the export, the goods are presented to a named customs office, everything travels on one invoice and the paperwork has been agreed with weeks to spare. Our cellar planning for these yachts is described in The Finishing Touches.
Why a lower price can be a risk
When another supplier does not charge tax, the tax is still due. It does not vanish because an invoice left it out, and a supplier who is not registered for excise movements is moving alcohol without authorisation, which is a customs matter that can reach the vessel holding the goods. Our earlier article VAT, where do you stand warns of the consequences, and the broader legal picture is in legal considerations for wine and spirits on yachts.
What to tell your supplier at the time of ordering
- The delivery address and country, and the date.
- Whether the vessel is a private yacht, a commercial charter yacht, or under construction or refit.
- For tax-free stores, the ship's papers, charter contract and crew list, and the name of the customs agent.
- For a business order, your VAT number and your excise authorisation.
- For a shipyard, the written answers on customs procedure, scope and excise authorisation.
If something is missing when the order must go, the safe answer is destination VAT, with a clean invoice that your owner's accountant will accept. You can start a request through the order builder, or send us the details and we will work out the route with you.
Frequently asked questions
Do yachts pay VAT on wine bought in France?
Most do. Unless the delivery is an export outside the EU, a qualifying tax-free ship's stores order, or a business order with the right authorisations, the VAT of the delivery country applies.
Is a foreign flagged yacht exempt?
No. The flag does not decide the treatment. The destination of the goods and the authorisations of the receiver do.
What is a certified consignee?
It is a business authorised to receive duty-paid alcohol from another EU country under the excise movement system. Many yacht agents, yards and bonded stores hold the status.
How much notice do I need for tax-free ship's stores?
We need 48 hours' notice, the supporting documents and a request at the time of ordering, because tax cannot be reclaimed after a normal order.
