VAT regulations may change depending on the cruising itinerary and local legislation.
Yacht Delivery and Redelivery Fees
If the yacht is required to start or finish the charter in a port different from its current location, delivery or re-delivery fees may apply.
These costs correspond to the expenses incurred to reposition the yacht to the agreed embarkation port.
Delivery fees mainly include:
Delivery fees are charged in addition to the charter fee and are subject to applicable VAT.
Advance Provisioning Allowance (APA) Explained
Luxury yacht charters operating under the MYBA Charter Agreement require an APA (Advance Provisioning Allowance) in addition to the weekly charter rate. The APA works as a prepaid expense account used to cover the running costs of the yacht during the charter.
The APA generally represents between 35% and 40% of the weekly charter rate, depending on the cruising itinerary planned for the charter.
This allowance is used to cover the operational expenses incurred during the charter, including:
Fuel Consumption and Marina Fees
Fuel consumption and marina fees usually represent the largest expenses within the APA. Fuel costs depend on the itinerary, cruising speed, and distances travelled during the charter.
Marina fees vary depending on the destination and the size of the yacht. In popular ports during the high season, berth costs can account for an important share of APA expenses.
Agency Fees
Captains frequently appoint local yacht agents to assist with operational arrangements during the charter.
Their role may include:
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reserving marina berths
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organising provisioning deliveries
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arranging transportation such as taxis or chauffeurs
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assisting with restaurant reservations
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coordinating port formalities and local logistics
In certain cruising areas, such as Italy, the use of a local yacht agent is mandatory for commercial yachts when reserving marina berths.
Throughout the charter, the captain manages the APA budget and keeps a detailed record of all expenses.
At the end of the charter, a full accounting of the APA is presented to the client, and any unused balance is returned.
If the APA becomes insufficient during the charter, the Captain may request an additional advance to cover remaining operational expenses.
How the APA Is Managed During a Yacht Charter
During the charter, the Captain manages the APA and monitors all expenses incurred on behalf of the Charterer.
The Charterer is kept informed of the level of expenditure throughout the charter.
At the end of the charter, the Captain presents a full account of all expenses together with the supporting receipts.
If any unused balance remains, it is returned to the Charterer.
If the APA becomes insufficient during the charter, the Captain may request an additional advance to cover the remaining expenses.
Yacht Charter Costs: FAQs
Is a Security Deposit Required for a Yacht Charter?
On some charters, a security deposit may be required.
This deposit may be held to cover potential damages, losses, or liabilities caused by the Charterer or their guests during the charter.
If no damage occurs during the charter period, the security deposit is refunded at the end of the charter.
How Much Should You Tip the Crew on a Yacht Charter?
Brokers generally suggest a gratuity between 5% and 15% of the charter fee if the crew has provided excellent service.
Crew gratuity is not included in the charter fee and remains entirely at the Charterer’s discretion.
However, gratuities are entirely voluntary.
When Do You Pay for a Yacht Charter?
Yacht charter payments are structured under the MYBA Charter Agreement and follow a standard schedule. Under the MYBA Charter Agreement, 50% of the charter fee is payable upon signature of the charter contract.
The remaining balance of the charter fee, together with VAT, the APA and any delivery fees, is due one month prior to embarkation.
How Much Does It Cost to Charter a Yacht in Total?
The total cost of a yacht charter goes beyond the charter rate and includes additional expenses such as VAT, APA, delivery fees and optional crew gratuity.
The final cost of a yacht charter can vary significantly depending on the cruising itinerary, fuel consumption, marina fees and the level of service required on board.
