The Four Parts of a Charter Bill
Most crewed yacht charters in the Mediterranean use the MYBA Charter Agreement, the standard contract published by MYBA, the Worldwide Yachting Association. Under that contract, the price splits into four lines, each with its own rule.
1. Base charter fee
The rent for the yacht and its crew for the agreed period. It covers crew wages, the yacht's insurance and its upkeep. It does not cover fuel, food, drinks or berths.
2. APA
The Advance Provisioning Allowance, a deposit for running costs. Brokers commonly quote 25 to 40 percent of the base fee. Unspent money comes back to you.
3. VAT
Value added tax on the charter fee. The rate depends on where the charter starts and where the yacht cruises, and it can be anything from zero to 25 percent.
4. Crew gratuity
A voluntary tip, not part of the contract. Broker guides commonly suggest 5 to 20 percent of the base fee, handed to the captain on the last day.
How the APA Works
You pay the APA with the final charter payment, usually a few weeks before you board. The captain holds it and pays the running costs of your trip from it: fuel for the main engines, generators and tender, food and drink to your own preference list, marina berths, port and canal fees, and communications.
The captain keeps every receipt and gives you a full account before you leave. Unspent money is refunded; an overspend is settled on board. Fuel drives the percentage: brokers ask for a higher APA on fast motor yachts than on sailing yachts. The 25 to 40 percent figure is a typical range from the trade, not a rule in the contract.
VAT by Charter Area
Inside the European Union, VAT on a charter generally follows the country where you board, at that country's rate. Some countries apply a reduced rate to charters, and some have special rules that tax only part of the fee. Always check the rate printed on your contract. Standard rates below are from the European Commission's list of EU VAT rates (2026).
| Charter area | VAT rate on the charter fee |
|---|---|
| France (and Monaco, which uses French VAT) | 20% standard rate |
| Italy | 22% standard rate |
| Spain, including the Balearic Islands | 21% standard rate |
| Greece | 13% reduced rate for a yacht chartered with its crew, which the Greek tax authority (AADE) treats as passenger transport (circulars E.2111/2019 and E.2006/2026); 24% standard rate for a bareboat charter |
| Croatia | 13% reduced rate for accommodation on nautical tourism vessels, which covers charters with overnight stays on board (25% standard), per the Croatian Tax Administration |
| Malta | 12% for charters that start in Malta and last no more than 35 days in 12 months (Legal Notice 231 of 2023, in force since 1 January 2024); 18% standard |
| Outside any VAT area, for example the British Virgin Islands | No VAT; local charter or cruising taxes can apply instead |
Yacht Charter Total Cost Calculator
Enter the figures from your quote. The result updates as you type.
Total charter cost
Per guest per day
Above the base fee
Method: VAT = rate x (base fee + delivery fees). APA = APA % x base fee. Gratuity = tip % x base fee. Total = base + delivery + VAT + APA + gratuity. The APA is an estimate: the real figure is what you spend, and the unspent part is refunded. Educational tool; your contract and your broker give the binding figures.
Other Costs to Ask About
- Delivery fees. If you board or leave the yacht away from its home port, the owner can charge for the trip there or back, including fuel and crew time. There is no standard amount, so ask for it in writing.
- Local cruising taxes. Some countries charge a separate fee for yachts in their waters, on top of VAT.
- Special requests. Rare wines, extra water toys or a helicopter transfer come out of the APA or appear as extra lines.
Frequently Asked Questions
What is the APA on a yacht charter?
The Advance Provisioning Allowance is a deposit you pay on top of the charter fee. The captain uses it for running costs such as fuel, food, drinks, berthing and port fees, and returns any unspent amount at the end of the charter. Brokers commonly quote 25 to 40 percent of the base fee.
Is VAT charged on the APA?
VAT is normally charged on the charter fee, not on the APA itself, because purchases paid from the APA, such as fuel and food, already carry local taxes at the point of sale. Check your contract. The calculator does not add VAT to the APA.
How much should I tip the crew?
A gratuity is voluntary and is not part of the charter contract. Broker guides commonly suggest 5 to 20 percent of the base charter fee, given to the captain at the end of the trip to share with the crew.
Is the APA refundable?
Yes. The captain keeps receipts for every expense and gives you an account before you leave. Unspent money comes back to you, and if costs run over you pay the difference.