How are taxes, fees, and expenses determined in yacht sales?

How are taxes, fees, and expenses determined in yacht sales? A comprehensive legal guide explaining who is responsible for VAT, excise tax, stamp duty, notary fees, ship registration and mooring fees, as well as survey, broker, and closing expenses, according to Turkish law.

Entrance

In yacht sales, the sharing of taxes, fees, and expensesis often left to the end of the contract but directly affects the outcome of the transaction. This is because a yacht sale isn't solely about the sale price; factors such as VAT, excise tax, stamp duty, notary fees, ship registry or mooring register fees, survey costs, broker commission, translation and apostille costs, marina exit fees, and registration change costs for foreign-flagged vessels also significantly alter the total economic burden. In Turkish law, not all these items are covered in a single law; the tax side is governed by the General Directorate of Revenue regulations, the registration and mooring side by the Ministry of Transport and Infrastructure practices, and the contractual sharing side by the Turkish Code of Obligations.

Therefore, there is no single-sentence answer to the question, "Who pays the expenses in a yacht sale?" Some items are legally more directly related to a specific party in the transaction, while others are entirely shared by contract. For example, in private boat sales, the licensing fee paid on behalf of the buyer is clearly prominent in practice; in national ship registry transactions, the ship certificate fee, registration correction fee, and sale/transfer fee are among the main transaction items. In contrast, expenses such as survey, broker, closing lawyer, escrow, or translation are often left to the agreement of the parties. A solid contract should make tax and expense items visible during the negotiation phase, rather than saying "we'll look at it later.".

First, a fundamental distinction must be made: Taxes, fees, and charges are not the same thing

The most common mistake in yacht sales is lumping together taxes, fees, and transaction costs. However, these stem from different legal sources. Taxesare public receivables arising from law; VAT and, in some scenarios, excise tax are typical examples. Feesare public revenue collected in exchange for a specific public service or transaction; ship registration, mooring register, and notary procedures are prominent examples. Costs refer to the specific expenses incurred by the parties for the security of the transaction; survey fees, broker commissions, translation, apostille, marina exit fees, insurance endorsements, and bank transfer charges fall into this category. If this distinction is not made in the contract, instead of a simple "I paid the tax, you pay the fee," the parties proceed with vague formulas such as "the buyer pays everything" or "everything is included in the price," leading to a crisis on closing day.

In practice, the correct method is to list each item under a separate heading. Subheadings such as "VAT and other indirect taxes, if any, related to the sale," "notary/registration/land registry fees," "broker's commission," "technical inspection expenses," "marina and storage liabilities," and "foreign registry cancellation or registration expenses" should be clearly listed. This makes the economic picture of the transaction visible. Otherwise, the parties may agree on the sale price, only to later realize that significant public charges and transaction costs have been added on top of that amount.

VAT aspect: The result is not automatically the same for every yacht sale

The first determining factor regarding VAT is whether the sale is made within the scope of commercial activity . The current VAT General Application Circular of the Revenue Administration clearly states that deliveries and services made within the framework of commercial, industrial, agricultural activities and freelance professional activities in Turkey are subject to tax; however, deliveries and services made within the framework of incidental activities are, as a rule, not subject to VAT. Therefore, the sale of a yacht in a company's assets may not result in the same VAT calculation as a one-time yacht sale by a private individual outside of a commercial organization. One of the first questions to ask in a yacht sale is therefore, "Who is the seller and is this sale within their commercial activity?"

A second distinction is necessary regarding VAT rates. According to current statements from the General Directorate of Revenue (GİB), for taxable transactions not included in the lists annexed to Decision No. 2007/13033, the general VAT rate is applied as 1%, 10%, and 20% ; for transactions not included in the annexed lists, the general rate is 20%. If the sale of a yacht does not fall under a special exemption or reduced rate, the general VAT burden may apply to commercial sales. Therefore, the general belief that "there is no VAT because it's a yacht" is incorrect. The main issue in VAT is the seller's status and whether the transaction falls under an exemption.

The VAT exemption does not apply to every yacht

The most confusing issue in practice is the exemption for marine vessels under Article 13/a of the VAT Law. The current VAT Circular from the General Directorate of Revenue clearly states that the delivery of marine vessels to taxpayers whose activities consist partially or wholly of renting or operating vessels is exempt from VAT; however, this exemption does not apply to those who are not VAT taxpayers or whose activities do not involve the renting/operation of such vessels. Therefore, the 13/a exemption does not automatically apply to yacht sales simply because "a boat is being sold"; the buyer's activity and the intended use of the vessel are important factors.

More importantly, the same current Circular sets a significant limit regarding private use boats and yachts: vessels used for activities not intended for cargo transport , such as cruising, recreation, sports, and amateur fishing, and falling under the category of private boats and private yachts with a hull length of up to 24 meters , are not considered within the scope of the exempted marine transport vehicles. Therefore, for most typical yachts purchased for private use, relying on the 13/a exemption simply because they are "marine vessels" is risky. In short, if VAT exemption is being discussed in a yacht sale case, the questions that should be answered together are not "a boat is being sold," but "for what activity, to whom, and what class of vessel is being sold?"

Special Consumption Tax (SCT) aspect: This should be checked especially in initial acquisitions and imports

In yacht sales, Special Consumption Tax (SCT) may not be levied on every file; however, without considering the SCT aspect is a serious mistake. The text of the SCT Law and tax information documents of the General Directorate of Revenue indicate that SCT is levied once at the stage of production, import or initial acquisition of goods in the lists attached to the Law ; and that vehicles such as ships, yachts, recreation and sports boats are included in list (II). Therefore, SCT should be checked as a separate heading, especially in new yacht purchases, imports, initial registration/initial acquisitions or certain flag-registration conversion scenarios.

The practical conclusion that can be drawn from this is that the assumption that a new Special Consumption Tax (SCT) will be levied on every sale of a second-hand yacht in Turkey, once its tax regime has been completed, is incorrect; however, focusing solely on VAT in transactions involving import, new delivery, or initial acquisition is also insufficient. This area requires special examination based on the Harmonized System Code (HS Code), intended use, the nature of the vessel, and the initial acquisition structure. Secure contractual language should be established accordingly: instead of a general statement such as "Any SCT liability arising from import and initial acquisition is the responsibility of the buyer/seller," it should be clarified at what stage of the transaction the tax arises.

Stamp duty: This often needs to be considered separately in sales contracts

Another neglected public burden in yacht sales contracts is stamp duty. According to the Stamp Duty Law, the documents listed in the attached table (1) are subject to stamp duty. In the current table of the GIB, the rate is shown as 9.48 per thousand for contracts, undertakings and assignments containing a specific amount of money . This means that stamp duty may be levied depending on the nature of the written yacht sales contract. In addition, according to the current announcement of the GIB, the maximum amount of stamp duty to be applied for each document for the year 2026 is 29,115,961.10 TL . Even this ceiling may have practical significance in high-value mega yacht transactions.

There is an important exception here: The General Directorate of Taxation's current table of documents exempt from stamp duty documents related to the construction, renovation, conversion, maintenance, and repair of all types of ships, yachts, and other watercraft . It should be noted that this exemption targets construction, conversion, renovation, and maintenance/repair documents, not sales contracts. Therefore, it cannot be concluded that "every contract related to a ship/yacht is exempt from stamp duty." The stamp duty risk in yacht sales contracts must be analyzed separately.

Notary fees, ship registry fees, and mooring register fees

Another aspect of public cost in yacht sales is fees. The Fees Law explicitly includes notary fees within the system; therefore, official transaction costs beyond taxes may arise in transactions conducted before a notary. In addition, the yacht's registration regime is crucial. If the yacht in the national ship registry , the 2026 application pages of the UAB port authorities highlight at least three key items for sale/transfer transactions: ship certificate fee, ship registry correction fee , and ship registry sale/transfer fee. The UAB also states that these transactions are carried out through application and debit via the Umurbey/e-Government infrastructure.

If the boat mooring registry , the procedure is different. The 2026 mooring registry pages of the UAB (Union of Turkish Boats) clearly state that for sales transactions involving privately owned boats of 5 meters and above the receipt for the license fee paid in the buyer's name must be presented; the buyer pays the fee according to the license validity period they choose between 1 and 5 years. The Izmir Port Authority's 2026 announcement states that the 1-year license fee is: 5,992.10 TL for 5-7 meters, 8,560.20 TL for 7-9 meters, 12,840.20 TL for 9-12 meters, 25,680.70 TL for 12-15 meters, 42,801.10 TL for 15-20 meters, 85,602.30 TL for 20-30 meters, and 171,204.70 TL for over 30 meters. This item is often included in the buyer's budget during a sale; however, the parties may agree on a different sharing arrangement through a contract.

Special transaction fees other than the sale price

Expenses other than taxes and fees are often the most visible but least documented part of a transaction. In yacht sales, numerous items may arise, including survey/appraisal, hauling ashore, trial sailing, classification or technical report, broker commission, translation and notarization, apostille/legalization for foreign documents, bank swift fees, escrow, transfer of insurance policy or issuance of a new policy, marina departure debt, fuel/water balance, key and electronic access transfer. A significant portion of these expenses are not direct public obligations; therefore, the law does not automatically impose them on one party. Thus, the contract is the ultimate determining factor.

In practice, a healthy model separates costs into "seller's clean transfer costs" and "buyer's acquisition costs." For example, the seller's own broker, pay-off and deregistration procedures, marina debts, and maintenance/operating debts incurred up to the date of sale are left to the seller. The buyer's own survey, lawyer, financing costs, additional expenses arising from their flag/registration preference, and licensing/registration items incurred in the buyer's name are charged to the buyer. The opposite can be agreed upon; however, if not, the question of "who will pay these?" will inevitably arise on closing day.

Income/corporate tax aspects from the seller's perspective

The tax debate surrounding yacht sales is not limited to VAT and excise tax. If the sale is made by a company or, in the case of an individual, if there is an element of commercial organization and continuity, then income or corporate tax implications also arise. The General Directorate of Revenue's current tax guides emphasize that the fundamental element of commercial profit is an activity based on an organization consisting of capital and labor and exhibiting continuity; the VAT General Application Circular also clearly states that deliveries within the framework of commercial activity are subject to tax, while incidental activities are evaluated differently. Therefore, whether the seller is a company engaged in yacht trading or conducts the sale from commercial inventory, the income/corporate tax and VAT aspects must be considered together.

There is an important practical distinction here: the seller's income/corporate taxshould not be considered, as a rule, as a transaction fee transferred to the buyer by contract. This falls within the seller's own income tax domain. Of course, the parties can establish an economic balance accordingly in the sale price; however, provisions such as "the buyer pays the corporate tax arising from the seller's sales profit" require special attention from a tax technical perspective. The safest approach is to state that the seller will bear their own income tax, while the buyer will bear the acquisition and registration costs. In large transactions, the parties can balance this economic burden through negotiation within the price.

How should cost sharing be written in the contract?

Single-sentence clauses in yacht sales contracts, such as "expenses are the buyer's responsibility," are often insufficient. The best approach is to itemize taxes, fees, and expenses. For example, the contract could be structured as follows: marina, mooring, maintenance, loan/payoff, mortgage cancellation, and seller's broker commissions incurred up to the date of sale are the responsibility of the seller; survey, trial sailing, buyer's lawyer, financing expenses, and new registration/license fees incurred in the buyer's name are the responsibility of the buyer; stamp duty, notary fees, or closing escrow fees are split equally or as agreed upon by the parties. The key here is to list each item separately.

Furthermore, clear wording is needed for indirect taxes such as VAT/Special Consumption Tax. There is a significant difference between "VAT legally incurred is the responsibility of the buyer" and "the price is determined including VAT." Similarly, in import/first acquisition structures, the phrase "Special Consumption Tax and import duties, if any, are the responsibility of the buyer" and the phrase "the seller delivers the vessel with all taxes paid and in free circulation" create different risk distributions. The tax and expense sharing clause should also clarify whether the sale price is truly net or gross. Otherwise, even if the price appears to be agreed upon, public charges can effectively alter the price.

The most common mistakes

The most common mistake in this area is interpreting the VAT exemption too broadly. The idea that "a marine vessel is being sold, therefore it is exempt from VAT" is particularly dangerous. The current Circular from the General Directorate of Taxation explicitly excludes marine vessels up to 24 meters in hull length and used for recreation/entertainment/sports purposes from the exemption, under the category of private boats and private yachts. A second mistake is leaving the registration fee or national registry sales/transfer fees to the last minute. A third mistake is considering stamp duty and notary fees as "minor items" and not including them at all in the contract. A fourth mistake is leaving the seller's past marina debts or mortgage/payoff expenses as a surprise for the buyer.

Another mistake is confusing taxes with expenses. For example, survey fees, translation fees, apostille fees, escrow fees, and broker commissions are not taxes; they are specific transaction costs, and the law does not automatically assign them to one party. These items should be allocated through an explicit contractual provision, not "by habit." In practice, the smoothest closings are those where all ancillary items are written out from the beginning, along with the final cost.

Conclusion

"How are taxes, fees, and expenses determined in yacht sales?" is as follows: First, the transaction is mapped out in terms of taxation; then, fees and special transaction expenses are classified separately; finally, all these items are distributed individually in the contract. In commercial sales, VAT is the main item; however, the 13/a exemption does not apply to every yacht and often does not provide a safe haven for yachts up to 24 meters in length used for private purposes. Special Consumption Tax (SCT) should be considered separately, especially in initial acquisition and import cases. Stamp duty is one of the main items in sales contracts involving a specific amount of money; the exemption granted for construction/refit documents does not automatically apply to sales contracts. In national registry and mooring register transactions, ship certificate, sales/transfer, and license fees should be budgeted separately.

In short, the best contract for a yacht sale is not just one that transfers ownership; it's also one that eliminates surprises related to taxes and expenses. Agreeing on the price isn't enough; it must also be clearly stated whether the price includes or excludes VAT, who is responsible for the fees, who is handling the survey and brokerage, who is responsible for any outstanding marina debts, and who is liable for import and initial acquisition taxes . In yacht sales, the real bargaining often doesn't happen at the sale price itself, but within the circle of taxes and transaction costs surrounding that price. If this circle is clearly defined, closing day will be a successful outcome, not a crisis.