.. The Yacht Charter Club- - - -Charter -Sales -F.A.Q. -About us --Comments - Jet Hire- -Contact -Site map -Home

Charter Terms explained

We use the MYBA agreement. - WMT, SEMT, EMT, GT, GRK & SCT (CTI)

It is important, in order to budget correctly for a charter, to understand the terms under which the yachts operate. Please do do be confused by these terms. We will gladly explain in more detail. An outline of the terms is as follows:-

A. MYBA - Western Mediterranean Terms

The Charter Fee includes the charter of the yacht with all its equipment in working order, tools, stores, cleaning material and basic consumable stores for engine-room, deck and cabins, etc., the crew's wages, food and the insurance of the yacht for marine risk and third party claims and the crew for employer's liability insurance. (If the yacht is not on MYBA terms then crew food may be charged extra)

The Charterer will be charged extra, at cost to the yacht, for all other expenses. These include fuel for the yacht, fuel for the ski-boats or other tenders, food for the charterers, wines, beers, spirits and soft drinks for the Charterers, other consumable stores, berthing dues and other harbour charges away from the yacht's own berth, including pilotage fees and charges for water and/or electricity taken from the shore, laundry, telephone, fax or telex via Satcom, Radio Telephone or telex costs, hire costs of special equipment placed on board at the request of the Charterer,

B. SEMT - Standard Eastern Mediterranean Terms (Now rarely used)

The Charter Fee includes the charter of the yacht with all its equipment in working order, tools, stores, spares, etc., the crew's wages and the insurance of the yacht for marine risk and third party claims and the crew for employer's liability insurance.

The Charter Fee also includes fuel for up to five hours cruising per day (averaged throughout the charter), food for the crew, berthing dues and other harbour charges (except Corinthian Canal dues), including water and/or electricity taken from the shore. The arrangements about fuel charges sometimes vary.

The Charterer will be charged extra, at cost to the yacht, for all other expenses, These include fuel for the ski-boats or other tenders, food, wine, beer, spirits and soft drinks for the Charterers, other consumable stores, berthing and harbour expenses outside the yacht's normal cruising area, laundry, telephone, fax or telex via Satcom, Radio Telephone costs, hire costs of special equipment placed on board at the request of the Charterer.

C. EMT - Eastern Mediterranean Terms,- half board. (Found mostly in Turkey)

As with SEMT, the Charter Fee includes the charter of the yacht with all its equipment in working order, tools, stores, spares, etc., the crew's wages and the insurance of the yacht for marine risk and third party claims and the crew for employer's liability insurance.

The Charter Fee also includes fuel for up to three* to five hours cruising per day (*depending on yacht and averaged throughout the charter), half board for the guests (breakfast and lunch), food for the crew, berthing dues and other harbour charges (except Corinthian Canal dues), including water and/or electricity taken from the shore. The arrangements about fuel charges sometimes vary.

The Charterer will be charged extra, at cost to the yacht, for all other expenses, These include fuel for the ski-boats or other tenders, evening meal, if taken on board, wine, beer, spirits and soft drinks for the Charterers, other consumable stores, berthing and harbour expenses outside the yacht's normal cruising area, laundry, telephone, fax or telex via Satcom, Radio Telephone costs, hire costs of special equipment placed on board at the request of the Charterer.


Some yachts offer more inclusive terms.

D.GRK - Greek Terms

The rate quoted includes the hire of the yacht, the crew's salaries, the insurance of the yacht, the crew's food, sufficient fuel and lubricants for 4 (four) hours cruising per twenty four hours, harbour dues and pilotage within Greek waters, water & ship's laundry. Extra to the charterer's account are guests food and drink, bar, Corinth Canal dues where applicable and port taxes & harbour dues outside Greek waters.

E.Gulet Terms (GT; Gulet Charter in Turkey)

The rate quoted includes the hire of the yacht, the crew's salaries, the insurance of the yacht, the crew's food, sufficient fuel and lubricants for 4 (four) hours cruising per twenty four hours, harbour dues and pilotage within Turkish waters, water & ship's laundry. Extra to the charterer's account are guests food and bottled water (a set amount which may be paid in advance), bar, port taxes & harbour dues outside Turkish Waters.

F. SCT - Standard Caribbean Terms; Caribbean Terms Inclusive (CTI)

The Charter Fee includes all expenses listed under MYBA-WMT and SEMT plus all food. Some yachts also include wine and bar, excluding vintage wines and champagne.

In the Caribbean this is normally referred to as 'All inclusive (Full board, vessel fully equipped with fuel and staff), but excluding bar, communications and cruising taxes, if any'. [Extras include: communications (your use of the yacht's satelite or mobile phone), marina-type berthing, rendezvous diving, shore excursions, cruising tax.]

IMPORTANT NOTES

A. Occasional variations between the terms offered by different yachts under the same main title do exist. For instance, one yacht may generally work on MYBA terms but also includes a small fuel allowance. However, the majority of yachts now operate under the well established and widely accepted MYBA Charter Agreement, sponsored by the Mediterranean Yacht Brokers Association and adopted by the American Yacht Charter Association. This agreement is also accepted by the Charter Yacht Broker's Association (CYBA).

B. Legislation now exists in the European Union requiring all charter yachts operating in the national waters of the Union (in this narrow context we are interested in France, Italy, Croatia, Spain, Croatia and Greece) to collect Value Added Tax (VAT/TVA/IVA, etc.) on all charters at rates which vary between 5.6% (Greece) to 20% and 22% in Italy, 20% in France. Depending on the route of the vessel and if the passage is through international waters the could be reduced by around 50%. This is currently under review, so do please check with us for up-to-date information. The VAT is payable on the Charter Fee only. Under EU Law the VAT is payable by the Charterer, however, there are some cases where the VAT liability is accepted by the owner. 

NB. At this moment (January 2016) VAT is generally collected in all EU Waters. Turkey is not in the EU but on Turkish Flag Yachts 18% Turkish VAT is payable on the charter fee. Some foreign flag yachts chartering in Turkey offer TAX FREE charters.

C. Due to U.S. Coastguard requirements some U.S. flag yachts operate under the demise charter agreement.

D. Under the marine cabotage law one can start a charter outside EU waters and end inside the EU without VAT being payable on the charter fee. Example: Kotor, Montenegro and ending in Croatia (VAT is applied at the start point of the charter and in this case Montenegro is a VAT FREE area.)

We are not VAT specialists but can offer solutions / answers to most VAT questions which are currently in place.

Copyright © 1998 by Surface 1921 Ltd., London, United Kingdom. Text Copyright © 1998 by Surface 1921 Ltd. In all instances Surface 1921 Ltd. are acting as agents only. Full terms and conditions are available on request.