When searching for the perfect yacht to charter in your chosen destination, you will quickly find that pricing is presented as charter fee plus VAT plus APA. In this guide, a 212 Yachts charter expert explains what to expect when it comes to yacht charter extra costs.
Will VAT Be An Extra Yacht Charter Cost?
The charter fee presented by your yacht charter broker is almost always presented without tax. When planning a yacht charter, it is important to consider the extra costs associated with VAT. VAT is calculated from the base charter fee, and is to be paid in advance of your yacht charter along with the base charter fee and the APA. The rate of VAT will depend on your chosen cruising area, as applicable rates vary worldwide.
For detailed information regarding the VAT rate applicable to your yacht charter, contact an expert from our charter department who will be happy to advise.
What Is APA?
APA stands for advanced provisioning allowance, and is an allowance used by the crew on your behalf, to cover extra costs associated with your yacht charter. It is paid in advance of the yacht charter, along with the base charter fee and VAT.
What Are Considered Extra Costs on a Yacht Charter?
Extra costs include:
- Fuel: the fuel used during your yacht charter is measured, and the total cost is then taken from your APA at the end of the charter. The longer you spend cruising, the greater the cost of fuel. This is worth considering when deciding on your yacht charter itinerary. The price of diesel fluctuates with time and location. For up-to-date diesel prices, visit this website http://www.globalpetrolprices.com/diesel_prices/
- Food; when you have signed a yacht charter contract, you will be invited to outline the meals and snacks you would like your chef to prepare for you. The crew will then purchase necessary items for your yacht charter using funds taken from the APA. The totality of this extra cost will depend on the foods desired, the quantity, and the price of produce.
- Drinks; when you have signed a yacht charter contract, you will also be invited to outline your preferred drinks. These can be soft drinks, alcoholic beverages, fresh fruit juices, hot beverages or anything else to taste. Again, the totality of these extra costs will vary from yacht charter to yacht charter, as they depend on the beverages requested, the quantity and local prices.
- Special requests; the APA will be used to cover the costs of any special requests that fall outside the normal service of the yacht charter. These may include cigars, specific tenders not carried by the yacht such as a VanDutch 40, berths, components for events and parties such as decoration, equipment hire and performers, and anything else desired on-board.
How Much Are Yacht Charter Extra Costs?
APA is normally set at 30% of the charter fee, however this is subject to change on discussion of itinerary and plans. If it is indicated that fuel costs, food, drinks and other desires may exceed the standard APA, then an increase may be proposed.
What Happens to the Left Over APA?
After your yacht charter, all extra costs will be calculated. If these extra costs amount to less than the APA, then you will be reimbursed the balance. If the APA does not cover the total extra costs, then the balance must be settled. As a broker, we will do our best to communicate with the captain before and throughout the yacht charter, so as to be able to advise if the APA may not be sufficient.
Some yacht charter guests choose to leave the left over APA as gratuity for the crew, if they have provided a fantastic charter experience.
Explore yachts available to charter in a destination of your choosing, or contact a member of our experienced and friendly team to discuss your plans and desires.