APA on a Yacht Charter: What It Covers and How Much to Budget

Where your APA lands inside the usual 25-40% range depends mostly on fuel: a motor yacht covering long distances every day sits at the top, a sailing yacht or a route with short hops and nights at anchor sits lower. The APA is not a fee or a deposit the owner keeps. It is your money, spent on your behalf and paid before the charter with the balance of the fee, on the dates in your contract; if it runs short during the week the captain asks for more, and if part is withheld for a late invoice or agreed damage, it is noted on the account you sign.

Why does the APA exist?

Because the costs of a week at sea depend on how each group uses the yacht, the standard contract leaves them out of the price and makes you pay them at real cost. Most crewed charters are contracted on MYBA terms, which work on a “plus all expenses” basis. The charter fee pays for the yacht, the crew and the insurance. The costs that depend on how you use the yacht are left out because they vary enormously from one group to another: one family wants to cover 300 nautical miles in a week, another wants to stay at anchor in two bays; one group drinks vintage champagne, another mostly water and local wine.

Instead of guessing and building those costs into a higher rate, the contract charges them as they happen. The APA is the practical mechanism: you fund it in advance, the captain pays suppliers during the week, and the account is settled at the end.

How much is the APA?

Usually between 25% and 40% of the charter fee, depending on the source: on a fee of €100,000, between €25,000 and €40,000. The exact percentage is set in the charter contract. What each source says:

That money is sent on top of the fee itself, not taken out of it.

Why do motor yachts need a higher APA?

Fuel is usually the largest single item. Motor yachts burn far more fuel than sailing yachts, especially at speed, and IYC notes that this is why they normally carry a higher APA. A sailing yacht has lower fuel costs, although food, drink and marina fees still apply. The itinerary matters as much as the type of yacht: long passages every day push the APA up, short hops and nights at anchor keep it down.

And on all-inclusive charters?

Some yachts are offered on all-inclusive terms, such as Caribbean Terms Inclusive (CTI), where three meals a day and fuel for four hours of cruising a day are built into the price, and some drinks may be included. BOAT International puts the extra allowance on those at around 5% of the charter fee instead of 30-35%. The headline rate is higher, but there is less to settle at the end. If you compare an all-inclusive yacht with one on MYBA plus all expenses terms, add the APA to the second before comparing.

What does the APA pay for?

The running costs of your week, at cost. According to the MYBA guidance for captains and IYC’s guide, that means fuel for the yacht, the tender and the water toys, food and drink for your party, berths and port fees (with pilots, local taxes, customs and waste disposal), shore water and electricity, agents’ fees, communications, personal laundry beyond the crew’s courtesy, transport ashore and excursions, and special requests such as replacing flowers or a particular wine. The charter fee already covers the yacht, the crew’s wages and food, the insurance, the ship’s linen and towels, and a wide list of basic consumables, from filters and oil to sun lotion, shampoo and galley basics, so none of these should appear on your APA account. MYBA’s full lists of what the fee includes and what is paid on top are in our guide to the MYBA charter agreement.

What the APA does not pay for

Two things that are often taken for APA items are not part of it:

• VAT on the charter fee, which is a separate line.
• The crew tip, which is voluntary. Some brokers suggest using part of any leftover APA towards it, as BOAT International notes, but that is your decision. Our crew tipping guide covers amounts and customs.

A detail that protects you

MYBA’s guidance says the charterer should only be charged for port fees incurred during the charter period. Dockage while the yacht is provisioning before you arrive is for the owner’s account. If guests arrive early or stay late by agreement, the extra port fees are yours.

When and how do you pay the APA?

Burgess describes the payment terms of the MYBA charter agreement: a deposit of 50% of the charter fee on signing, and the remaining 50%, plus the APA, any taxes and other agreed charges, five weeks before the charter starts. The exact dates are in your contract. The APA is transferred before you board, either to the stakeholder that holds the charter funds or to the captain or yacht management, as the contract specifies.

Pay by bank transfer to the account stated in the contract. If you receive new bank details by email, confirm them by phone with the agency before paying.

Why not just carry cash?

MYBA advises against large amounts of cash APA on board. Cash movements are regulated, and in many places cash of €10,000 or more must be declared to customs; in the EU, when entering or leaving the Union (Regulation (EU) 2018/1672). The guidance asks captains to use cards, cash cards or invoice payment by transfer wherever possible.

How does the captain account for the APA?

The captain answers to you for every expense, keeps you informed during the week, and presents a full statement with receipts before you leave; you sign it and any balance is refunded. MYBA’s guidance sets it out step by step:

1. The captain answers to you. The captain is directly accountable to the charterer (or the broker, if you ask) for how the APA is spent, including money spent by any crew member, and must spend it responsibly.
2. You are kept informed. During the charter the captain watches the level of spending and tells you regularly how the account stands.
3. More funds if needed. If spending runs ahead of the APA, the captain can ask you for more during the charter.
4. A full statement at the end. Before you leave, the captain presents a statement of account with all the supporting receipts.
5. You sign it off. If you accept the accounts, you sign them and a copy goes to your broker. If you have questions, they are noted and the broker is informed.
6. The refund. Any balance due to you is refunded. MYBA says you should be able to receive it by bank transfer if you do not want cash.

Bank fees for the APA transfer are, under standard MYBA wording, deducted from the APA itself.

Provisions you bought but did not use

At the end of the charter the captain should give you a list of provisions bought but not consumed, especially wines and spirits. They were paid with your money. Ask what you can take with you: MYBA reminds captains that duty-free goods cannot be taken off the yacht without the proper customs declaration, so the captain will explain the options.

Bills that arrive late

MYBA asks captains to make sure no bills are left outstanding after you sign off the APA account, and to warn suppliers that invoices presented after the charter will not normally be paid. If an invoice genuinely cannot be ready in time, the captain withholds a reasonable amount, notes it on the account with a date for final settlement, and refunds the balance once it is paid.

Damage

If a guest causes damage and it is agreed that you should pay, the captain must show it to you during the charter, take photographs, establish a realistic repair cost (for example with quotes) and withhold that amount from the APA, noted on the account you sign. If more is needed, it is sent to the stakeholder before you disembark, and any surplus after repair is refunded. MYBA is clear that if you were not told during the charter and did not sign for it, it would be unreasonable to ask you to pay later. Fair wear and tear is not charged.

What does a clear APA statement look like?

A clear statement is grouped by category, backs every line with a receipt and ends with the balance: what you sent, what was spent and what comes back. It should be easy to read without the captain standing next to you. The usual categories:

• Fuel: each bunkering, with litres, price per litre and whether it was duty-free, plus the fuel used by the tender and toys.
• Provisions: food and drink, by supplier and date.
• Bar: wines and spirits, especially anything bought on request.
• Berths and port fees: each harbour, with the nights and the charges, and any agent’s fee.
• Communications: internet or satellite charges, if not included.
• Extras: excursions, transport ashore, flowers replaced, special equipment.
• Bank fees: the cost of the APA transfer, if deducted.
• Amounts withheld: late invoices or agreed damage, with an explanation and a date for final settlement.
• Balance: the APA received, the total spent and the amount refunded or still due.

If a line is unclear, ask before you sign. The captain should be on hand for questions, and anything you query is noted and passed to your broker. Signing the account is what closes it, so take the time you need on the last morning rather than signing on the gangway.

Who holds the money before the charter?

The contract says where the APA is paid: often to the stakeholder that holds the charter funds, which then passes it to the yacht, or directly to the captain or the yacht’s management. Either way, the captain is the one who spends it and answers to you for it.

Is VAT charged on the APA?

Not as such. The VAT on a charter is charged on the charter fee, and IYC states that it is not charged on the APA. But the goods and services paid from the APA carry their own VAT, like any purchase: the fuel, the food and the berths are invoiced with the tax that applies to each.

The Croatian Tax Administration put it clearly in a 2017 opinion: guest deposits that the owner holds to pay guests’ costs are not taxed by themselves, but the VAT rates of the underlying goods and services still apply. Costs the owner pays and then re-invoices to the guest become part of the taxable base. MYBA tells captains to take advice from their fiscal agent on how to account for VAT from the APA. The practical point for you: when the captain pays suppliers on your behalf, the receipts on your APA statement already include the VAT of each purchase, and there should be no extra VAT charged on top of the total; if the owner re-invoices costs to you, ask how VAT is applied.

For VAT on the charter fee itself, see our yacht charter VAT guide by country.

Worked example: how much APA comes back?

On a €150,000 week with a 30% APA of €45,000, spending €38,500 and withholding €1,000 for a late invoice leaves €5,500 refunded at the end of the charter. An illustrative case with round numbers, not a quote for any real yacht.

If the group had asked for long passages every day or a very expensive wine list, the spending could have passed €45,000. In that case the captain would have asked for a top-up during the week, or you would have settled the difference before leaving the yacht.

How to keep the APA under control

• Tell the broker your preferences early. MYBA’s 2019 guidelines for brokers ask them to send the captain a comprehensive preference document in writing, with the guests’ details and any medical or mobility needs. Add your diets, drinks and activities to it. With good information, the crew provisions what you will use, not a bit of everything.
• Plan the route with fuel in mind. Ask the captain for a fuel estimate on the itinerary you have in mind. Short legs and nights at anchor make a big difference on a motor yacht. Our guide on how to choose a charter yacht covers speed and consumption.
• Book berths for the places that matter. Prime berths in high season cost more and need advance booking. Spending some nights at anchor saves on both.
• Ask for a mid-week update. The captain must keep you informed, so ask for the running total halfway through.
• Agree a policy on drinks. Premium wines and spirits can move the final figure a lot. Ask for prices before opening anything exceptional.
• Read the statement before signing. Check that charter-fee items (crew food, linen, basic consumables) are not on it, and that port fees only cover your charter period.

APA questions people often ask

Is the APA refundable?

Yes. It is an advance, not a fee. Whatever is not spent comes back to you, minus any amounts withheld for documented late invoices or agreed damage.

Can the APA be used for the tip?

The tip is separate and voluntary. You can decide to use part of the leftover APA for it, but the crew should never ask for a tip when the account is settled. MYBA is explicit on this.

What if the APA runs out?

The captain can ask you for more funds during the charter. It can happen on itineraries with a lot of cruising, which is why a mid-week update is useful.

Is the APA the same as a security deposit?

No. A security deposit is held against damage and returned if nothing happens. The APA is spent on your running costs during the week. Under MYBA practice, agreed damage is withheld from the APA and noted on the account you sign, so in that sense the APA also covers that risk, but its purpose is to pay for your fuel, food, drink and berths.

Does every yacht use an APA?

Yachts on MYBA plus all expenses terms do: Burgess calls the APA a standard, mandatory prepayment. All-inclusive yachts work differently, with a much smaller allowance (around 5% of the charter fee, according to BOAT International), because the main costs are in the price.

To see how the APA fits into the whole budget, with VAT, tip and delivery fees, read how much a luxury yacht charter costs and our guide to the MYBA charter agreement.

Compare yachts with the APA already added

The APA moves mostly with the route and the drinks, so tell us how you like to spend a week at sea: long passages or short hops and nights at anchor, motor or sail, and the kind of food and wine your group prefers, along with your dates and number of guests. A charter specialist will reply with options that show the charter fee, the APA percentage and the VAT side by side. The charter is contracted with the yacht’s owner through a licensed charter agency, usually under the MYBA contract, with the full price and the VAT clear before you sign or pay anything. Tell us how you sail.