Local VAT
Additional expenses – APA (Advance Provisioning Allowance)
The APA covers all expenses during the vacation. All costs related to fuel and water consumption, food, drinks, alcoholic beverages, and port and canal fees are additional charges. This is standard practice when renting luxury crewed yachts.
The client pays an advance amount to cover all these extra charges, and it is the captain’s responsibility to manage the payments and provide the client with detailed receipts at the end of the trip. This amount, known as the Advance Provisioning Allowance (APA), is intended to enhance the level of service by allowing the client to enjoy the vacation without being distracted by daily expenses.
As a temporary expense, the APA usually ranges between 20% and 40% of the charter fee. Naturally, the APA depends on the level of quality and service the client desires. Since a yacht vacation includes breakfast, lunch, dinner, drinks, and alcohol, this can be a considerable amount.
If, at the end of the vacation, the APA was not fully used, the remaining balance is refunded to the client. On the other hand, if additional expenses occurred, the client is asked to settle the remaining balance on board before departure.
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