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On 14âeuros¯octobreâeuros¯2025, an amendment tabled as part of the Finance Bill had the entire nautical industry worried. It proposed a VAT rate of 33âeuros¯% for a heterogeneous list of so-called "luxuryâeuros¯" products, including pleasure boats. Problem: the targeted categories included sailboats over 3âeuros¯ton and motorboats with more than 20 horsepower. In the end, the amendment was withdrawn. And a reassuring fact deserves to be reiterated: the European Union does not allow VAT on everything.
Small" pleasure boats treated as luxury goods
The text, presented by several deputies from La France Insoumise, was based on an old tax nomenclature, which classified sailboats over 3 tons (around 8.5m) and motorboats over 20âeuros¯cv among luxury goods. An obvious error of assessment, given that these categories cover the majority of the French yachting fleet.
In concrete terms, this was aimed at units far removed from the ultra-luxury and yachting sector.
Withdrawal before debate in public session
The amendment was withdrawn even before it was discussed in the House. The MPs behind the text recognized a codification error in the General Tax Code. The vagueness of the text's real scope and the risk of penalizing local and industrial activities prompted this rapid withdrawal.
This is a positive sign: dialogue is still possible, and the vigilance of industry players has paid off.
Legal certainty provided by the European Union
More good news: even if the text had been upheld, its application remained highly hypothetical. The European Union strictly regulates the VAT rates applied by its member states. The standard ceiling is set at 25âeuros¯%. Any increase beyond this requires the agreement of all European partners.
In this context, a 33âeuros¯% VAT rate would have required a complex and unlikely procedure. The European Commission ensures tax harmonization to avoid distortions of competition within the single market. It is therefore a solid safeguard for exposed industries such as boating.
A structured, productive industry
The French yachting industry is not limited to a few prestigious ports. It relies on a network of shipyards, equipment suppliers, engine manufacturers, maintenance companies, marinas and tourist services.
Applying a surtax to boats that are widely distributed would have undermined an ecosystem that generates skilled jobs, many of which cannot be relocated. Professionals also point out that these units are often used for educational, sporting or family purposes. They represent a popular and accessible leisure activity, far removed from the clichés of luxury.
Remaining vigilant, but moving forward
The immediate threat has been averted, and the European framework offers a valuable guarantee. But the nautical industry remains attentive to political signals. Any future tax reform will have to take into account the economic reality of the sector, its industrial weight and its specific uses.
The withdrawal of this amendment shows that constructive dialogue is still possible. And thanks to the European framework, medium-term fiscal stability seems guaranteed. The nautical industry can therefore continue its efforts to structure and innovate, with a budgetary horizon less threatening than it might seem.
