VAT and Tax

This page explains how VAT and income tax apply to bookings made on cyprusboatrental.com. It is a plain-English summary, not tax advice — please consult a qualified Cypriot accountant for your specific situation.

1. Who collects what

Three different amounts are collected at the time of Booking:

2. The rental price (Owner ↔ Renter)

Cyprus VAT applies to commercial boat rentals in Cyprus.

• If the Owner is VAT-registered in Cyprus, the rental price displayed on the Listing is inclusive of VAT at the applicable rate (currently 19 % for short-term boat charter; please confirm with your accountant — reduced rates may apply to certain leisure services).
• If the Owner is below the VAT registration threshold and not registered, the rental price is collected without Cyprus VAT and the Owner is responsible for any income-tax / social-contribution treatment.
• The Owner is responsible for issuing VAT-compliant invoices to the Renter for the rental itself. The Platform does not issue rental invoices on the Owner's behalf. However, the Platform provides the Renter with a Booking Receipt for the full amount paid (collected as agent on behalf of the Owner), available to download from the Renter's account — this is a payment receipt, not a VAT invoice for the rental.

3. The Renter Service Fee (Platform ↔ Renter)

• The Renter Service Fee is a fee charged by the Platform to the Renter.
• Where Cyprus VAT applies to the Service Fee (typically when the Renter is a consumer in the EU), VAT is included in the displayed Service Fee.
• The Platform issues a receipt to the Renter for the Service Fee, available to download from the Renter's dashboard. While the Platform is not yet registered for VAT, receipts are issued without VAT; once the Platform is VAT-registered, VAT will be shown on the receipt where applicable.

4. The Owner Commission (Platform ↔ Owner)

• The Owner Commission is a fee charged by the Platform to the Owner. It is deducted from the rental price before payout.
• The Commission is stated exclusive of VAT; where Cyprus VAT applies (typically when the Owner is established in Cyprus), VAT is added.
• The Platform issues an invoice to the Owner for each Commission charge, available to download from the Owner's dashboard. While the Platform is not yet registered for VAT, invoices are issued without VAT; once registered, applicable Cyprus VAT — or a reverse-charge note for VAT-registered EU businesses — will be shown.

5. Income tax (Owners)

Income earned from boat rentals is taxable in Cyprus under standard income-tax rules. Owners are responsible for:

• Declaring their rental income to the Cyprus Tax Department
• Paying any income tax and social-contribution liability
• Keeping records of bookings, expenses, and invoices for at least seven (7) years (per Cypriot tax law)

The Platform shares booking records with Owners via the dashboard and may, where required by law, share information with tax authorities.

6. Non-Cyprus Renters

• For Renters resident in another EU member state, Cyprus is the place of supply because the Vessel is operated from Cyprus. Cyprus VAT therefore applies.
• For Renters resident outside the EU, the VAT treatment is the same — Cyprus is the place of supply.
• We do not deal with refund of VAT to non-EU travellers on services consumed in Cyprus.

7. Non-Cyprus Owners

If you are an Owner established outside Cyprus listing a Vessel operated from a Cyprus marina, you may have a Cyprus VAT registration obligation regardless of your turnover. Please consult a tax advisor before listing.

8. Records

We keep booking and payment records for seven (7) years from rental completion in line with Cyprus tax and VAT record-keeping obligations (see Privacy Policy §7).

9. Disclaimers

• This page is for general information only and does not constitute tax or legal advice.
• VAT rates, registration thresholds, and Cyprus tax law change from time to time. The information above is current as at the effective date at the top of this page.
• You are responsible for taking your own tax advice.

10. Contact

Questions about how VAT or tax interacts with the Platform: [email protected]. We can confirm what receipts and records we hold but cannot give tax advice on your specific situation.