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New Bahamian Charter Tax

Discussion in 'General Yachting Discussion' started by motoryachtlover, Apr 6, 2023.

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  1. motoryachtlover, Apr 6, 2023
    #1
    motoryachtlover

    motoryachtlover Senior Member

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    I haven’t heard anything (until now) from the boating press or public about “an additional 10% VAT on top of the existing 4% port tax.” I don’t charter nor run charter boats but would be interested to hear from those that do as to the impact if any on the demand for charters. Do you pay this when you apply for the cruising permit?
  2. Pascal, Apr 6, 2023
    #2
    Pascal

    Pascal Senior Member

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    This came into effect last year. Just like the 4% charter tax it is paid at the end of the charter but it requires a separate registration with the VAT dpt

    I don’t think it’s going to affect business much

    and just to be clear cruising permits are for non charter boats only. To charter in the Bahamas you need to get a foreign vessel chargers license which includes a captains license valid only on the vessel. There is also an annual inspection by the port authority

    Charter boats coming in submit a transire not a cruising permit.

    the license cost varies by size. We don’t do charters with the 110 but before that with the 84 it was about $3000 a year.

    they ve been cracking down on illegal charters with stiff penalties…
    motoryachtlover likes this.
  3. maldwin, Apr 6, 2023
    #3
    maldwin

    maldwin Senior Member

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    I heard from multiple charter brokers at the Palm Beach show that it was reducing the amount of charters going to the Bahamas.
  4. Gulfer, Apr 7, 2023
    #4
    Gulfer

    Gulfer Member

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    On the Transire vs. Cruising Permit. Last year we ran into some problems bring "boat & fishing supplies" down on our plane to the Bahamas.

    The Customs people asked for Cruising Permit, but we had a Transire. They kept insisting that we needed a Cruising Permit as well, we insisted that is not the case and Transire supersedes it. It was a tense 15 minutes with Customs, but with a couple of phone calls. It was straightened out.

    Apparently, last year not everyone was up to speed with the changes. Had a similar issue on recent trip, but customs seemed to understand.

    p.s. We just got the VAT Certificate. The world keeps getting more complex.

    As for Charters, it's hard to say if demand has slowed down. The boat was stuck in Shipyard longer than we liked, so late to the game. But, so far, the demand is not the same as last year.
  5. Norseman, Apr 7, 2023
    #5
    Norseman

    Norseman Senior Member

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    Curious if the additional charter tax also applies to Bareboat Charters?
    We have been planning to rent a 41' sailboat in Nassau and cruise the Exumas for a week or two..:cool:
  6. Pascal, Apr 7, 2023
    #6
    Pascal

    Pascal Senior Member

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    If you mean crewed chargers under a bareboat contract I m pretty sure it does. As to non crewed chargers like Moorings and the likes, I don’t remember anything excluding them when VAT was extended to charters
  7. Norseman, Apr 7, 2023
    #7
    Norseman

    Norseman Senior Member

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    Nah, I mean real bareboat charters, as in the customers actually running the boat without hiring no Captain.
    Been eyeballing a Canadian company in Nassau renting boats to guys like me.
    It was plenty expensive before the additional charter tax, probably more so now.
    Also considering a trawler rather than a sailboat, if I feel lazy.:cool:

    Probably should go in the peak of the hurricane season, September 15th or thereabouts, strong winds for sailing at hull speeds then some, and the anchorages wide open.
  8. Pascal, Apr 8, 2023
    #8
    Pascal

    Pascal Senior Member

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    Well you need to call them and find out.

    Beware of these Canadian charter companies. Older boats, no gen or air con etc. we looked at it a few years ago and realized that while cheap, cheap boats weren’t our thing.
  9. Norseman, Apr 8, 2023
    #9
    Norseman

    Norseman Senior Member

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    Yes, looks like I will call to find out, only the 4% tax is mentioned on the home page.
    Can't say cheap boats are my thing either, but decided to try chartering in the future, had enough of boat ownership and maintenance for a while.:confused: