Boat rental

Boat rental

Question:
Hello!
A Bulgarian VAT-registered company with a registration address in Bulgaria has an asset that provides services in EU member states and in third countries (territorial waters of the Mediterranean Sea and international waters of the World Ocean). The services provided are of companies from Third countries, starting from one country and often ending there, but it is also possible that they end in another member country or in another country that is not a member of the European Union. It is possible to provide the client's use on its own, but it is also possible to offer asset management or additional service. Payments are always by bank transfer. Should VAT be charged on sales invoices to third party companies? Where is the place of performance of the services when the recipients are companies from third countries, but the service provided starts in a member country and ends in another EU member country, and should tax registrations and VAT registrations be carried out?
Thanks in advance!

Answer:
Hello,
The place of performance of the service in case the rental is less than 90 days is the place where the vessel is located at the time of its handover. If the rental is for more than 90 days, the place of performance is considered to be where the recipient is established or has a permanent address or habitual residence.
From here on, if the place of performance is outside Bulgaria, you do not charge VAT on your invoices. If the place of performance is in Bulgaria - you will have to charge 20% VAT.
We hope we have been helpful!
Greetings!