What Is APA in Yacht Charter? The Complete Guide to Advance Provisioning Allowance

What does APA stand for?

APA stands for Advance Provisioning Allowance. It is a separate payment made at the start of a yacht charter, on top of the charter fee, to cover the running costs of the yacht during your trip.

The APA is not a fee that goes to the broker or the owner. It is held by the captain and used exclusively to pay for expenses incurred during the charter. At the end of the trip, the captain provides a full itemised account of every expense. Any money left over is returned to you. If costs exceed the APA, you pay the difference.

What does APA cover?

The APA covers all variable costs that depend on how you use the yacht. The main categories are:

• Fuel — the largest single APA expense on most motor yacht charters. A 23-metre motor yacht running at cruising speed burns approximately 200–300 litres per hour. A week of active cruising in the Mediterranean can cost €5,000–€12,000 in fuel alone.
• Food and drinks — all provisioning for the charter, including breakfast, lunch, dinner, snacks, wine, spirits, soft drinks, and water. The chef shops daily at local markets and suppliers. Costs depend entirely on your preferences and consumption.
• Marina fees — berth fees at marinas and ports. These vary enormously: a berth in Monaco during the Grand Prix can cost €3,000–€5,000 per night, while a berth in a smaller Croatian marina might cost €200. Anchoring is free.
• Port taxes and cruising permits — entry fees, harbour dues, and cruising permits required in some countries (Croatia, Turkey, Greece). These are typically small but add up over a week.
• Crew gratuity — not always included in the APA, but often budgeted within it. The standard gratuity is 10–15% of the charter fee, paid in cash to the captain at the end of the charter for distribution to the crew. It is customary but not mandatory.
• Water toys and equipment hire — if the yacht's water toys are not included in the charter fee, hire costs come from the APA. Most charter yachts include a standard set of water toys; specialist equipment (jet skis, seabobs, diving equipment) may be extra.

How much is APA?

The standard APA is 30–35% of the charter fee, collected in advance before the charter begins.

On a charter with a fee of €50,000 per week, the APA would be €15,000–€17,500, making the total advance payment €65,000–€67,500. This is the figure you should use when budgeting for a charter.

The APA percentage varies depending on the destination and the type of yacht:

• Motor yachts — typically 30–35% APA because fuel costs are high.
• Sailing yachts — typically 25–30% APA because fuel consumption is lower.
• Dubai and Arabian Gulf — APA can be higher (35–40%) because marina fees and fuel costs in the Gulf are significant.
• Anchoring-focused itineraries — APA can be lower if you plan to anchor most nights rather than stay in marinas.

How is APA managed during the charter?

The captain holds the APA in a separate account and manages all payments on your behalf. You do not need to carry cash or handle any transactions during the charter — the captain pays for fuel, provisioning, marina fees, and all other expenses directly.

Most captains provide a daily or mid-charter update on APA expenditure so you can track spending and adjust your plans if needed. If you are spending more than expected (for example, staying in expensive marinas every night), the captain will let you know before the APA runs out.

At the end of the charter, the captain provides a full itemised account. This is called the APA reconciliation. You review every expense, and the captain returns any unspent funds or invoices you for any overspend.

What is the difference between APA and the charter fee?

The charter fee is the cost of hiring the yacht and crew for the agreed period. It is fixed and non-refundable (subject to the cancellation policy in the MYBA charter agreement). The charter fee goes to the yacht owner.

The APA is a separate, variable amount that covers running costs. It is held by the captain, not the owner. Any unspent APA is returned to you.

Think of the charter fee as the cost of the yacht, and the APA as the budget for how you use it.

Does VAT apply to APA?

VAT treatment of yacht charters in EU waters is complex and depends on the flag state of the yacht, the embarkation and disembarkation ports, and the routing of the charter. In general:

• Greek charters: VAT at 12% applies to the charter fee if the yacht embarks in Greece.
• French charters: VAT at 20% applies to the charter fee if the yacht embarks in France, though commercial yachts operating outside the 12-mile limit may qualify for a reduced rate.
• Croatian charters: VAT at 25% applies to the charter fee.
• Outside EU waters (Turkey, Montenegro, Caribbean, Dubai): no EU VAT applies.

VAT on the APA is calculated separately and applied to provisioning and marina fees at the local rate. Your broker will advise on the VAT position for your specific charter.

Tips for managing your APA

The APA is your budget for the charter experience. Here is how to use it well:

• Anchor more, marina less. Anchoring is free. A week of anchoring in beautiful bays costs nothing in marina fees. A week of marina berths in Monaco or Saint-Tropez can consume a significant portion of your APA.
• Discuss provisioning preferences in advance. Tell the chef your preferences before the charter starts. A preference for simple, fresh food rather than elaborate multi-course dinners will reduce provisioning costs.
• Plan your route with fuel in mind. Long passages at high speed burn significantly more fuel than slow cruising or sailing. If you want to cover a lot of distance, factor in higher fuel costs.
• Ask about water toys before the charter. If you want specific water toys (jet skis, seabobs, diving equipment), confirm whether they are included in the charter fee or charged from the APA.
• Budget for crew gratuity separately. The standard 10–15% gratuity on a €50,000 charter is €5,000–€7,500. This is a significant amount and should be budgeted in addition to the APA.

APA on MY OCEAN charter yachts

All MY OCEAN charter yachts operate on the standard MYBA APA system. The APA is collected before the charter begins, held by the captain, and reconciled at the end of the trip.

Emily Cossey, MY OCEAN's charter manager, will advise you on the expected APA for your specific itinerary and yacht before you commit. If you have a fixed budget, Emily can help you plan a route and provisioning approach that keeps costs within your APA.

To discuss a charter and get a specific APA estimate, contact our charter team or use the enquiry form below.

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