The transport contract offers Charterers and Owners massive savings on their cruise

What is the transport contract?

The transport contract is an alternative to the charter agreement for superyachts departing from France and Monaco approved by the French authorities. Transport contracts benefit from a more efficient tax regime resulting in massive savings for the Charterers or Yacht Owners.

What is the Wolfgang Platform?

The Wolfgang platform is a tool for yachting professionals to use the transport contract in a safe and easy manner. It allows for the clients to retain the same service and flexibility and for the professional to ensure compliance at all times.

Where do the savings come from?

The transport contract is eligible to the transport’s VAT rate (from 0% to 10%) while VAT on charter agreement is at full rate (20% in France).

The transport contract offers clients and owners massive savings on their cruise starting in French waters:

• VAT on the contract goes down dramatically, saving 10% to 20% compared to the fully taxed charter fees.
• Fuel is duty free, so it is basically half-priced compared to the duty paid fuel required for charter.
• Ports fees and expenses linked to the cruise can also be included in the contract in order to benefit from a better VAT rate.
• Clients and passengers are cleared from the risk of liabilities by being a yacht “operator” as is the case with a charter contract.
• Owners can benefit from the same advantageous tax regime and therefore reduce their cost operation to the actual use of the yacht without “losing” money on taxes.
• The transport contract is a commercial operation by definition which brings clarity to the legal status of the yacht.
• With such a reduction of the final price for the client, owners can optimize the booking rate of their yacht.

Tutino Yachts has subscribed to Wolfgang  to help and protect their Charterers and Owners with a more compliant and flexible Transport Contract:

• Wolfgang is the only online platform that can provide real time addenda of the contracts that are necessary to stay compliant. A paper contract can never be updated on time when the client is altering their plan putting the owner and captain at risk in case of control at arrival at the next call. Wolfgang is required for a compliant and flexible contract, custom authorities know it and will track down paper contracts for compliance with AIS routes.
• Wolfgang helps the brokers harvest the benefits of the transport contracts for their clients and owners. All the necessary tools are available to the brokers in order to be able to offer the contract to their clients.
• Wolfgang makes a complicated contract easy to draft and use : Wolfgang reduces the response time to a client’s inquiry, a quotation can be drafted in minutes. The platform is also securing the drafting process and preventing errors. There is less risk of liabilities for the parties when they use Wolfgang’s tools properly.
• Wolfgang provides the broker with oversight of their cruises. They can manage their fleet and active contracts in one place, from their computer or device.
• Wolfgang offers a neutral and secured platform to collaborate between professionals. Users have strict control over the flow of data.
• Wolfgang provides reports for tax representatives, managers and the captain of the VAT, Fuel and commercial use. The manager can anticipate the number and type of contracts required to reach the 70% of commercial activity. The transport contract is an incentive for the client to sail international voyages as there is a saving for them too, making it easier to reach the threshold.
• Wolfgang is fine-tuned to obtain the best rate ever for each cruise, they manage an average saving of 22% and up to 30% of the initial price quoted under a charter contract.

An example of the Wolfgang pricing policy and savings: