The French State has implemented new provisions regarding tax exemptions on commercial vessels of at least 15 meters in length, including yachts. The provisions came into force on the 1st January 2016. These provisions can be found in the Official Bulletin of the Tax-Public Finance of the French Republic (BOI). New procedure: According to the BOI, merchant vessels are subject to VAT on port rights and some other services. The vessel needs to have a permanent crew on board; The vessel is assigned to the needs of a commercial activity; and The vessel should carry out at least 70% of her trading outside the French territorial waters during the previous year (from the 1st January to 31st December).