Flag, registration and tax: three notions not to confuse.

Debates about yachts often confuse three notions that are in fact distinct: the flag, the registration and the tax position.

Three points to know

• A vessel's flag does not determine the tax rules that apply to her owner.
• George Town or Valletta, read on a transom, are ports of registry, not the name of the boat.
• A charter starting in France is subject to French VAT rules.

A real economic weight

Yachting carries considerable economic weight: around 9 million euros of spending in Corsica, and more than a billion euros and 10,000 jobs in the Provence-Alpes-Côte d'Azur region.

In 2012, Italy introduced a tax on large yachts. It was abolished in 2015, following criticism from the industry about its economic consequences.