Rio to Barcelona booze tax?

Just received cruise documents from Regent which included a notice about the VAT (value added tax) on bar, spa and boutique items (25%) while the ship is in Brazilian waters. Does this mean that the "free" liquor, wine, etc. that we get in the lounges/bars will be taxed 25% and put on our bill? Also, does this affect the liquor/wine/beer choices that we requested be put into our refrigerators in our cabin? This is strange, but wonder if anyone knows the answer to this. I sent a message to my TA and am awaiting her reply but thought a fellow passenger may be in the know and could provide the answer. As always, thank you for your assistance.

I would think it would only apply to things you're actually purchasing above and beyond what's 'included' in your cruise fare, i.e. premium wines, spirits, etc. - but I could very easily be wrong. Please let us know what you find out, I'd like to know myself since we'll be heading to Rio in about a year.

Thanks!

I believe that the tax will only be applied to purchased items; not included alcohol or spa services

Having just returned from Brazil, I can say with certainty that the tax does not apply to included alcohol ... only ultra top shelf wines/spirits, and purchases from the Boutique

For included alcohol it is actually the cruise line that will pay the local government. The line has to inventory all of the alcohol and review it with the local government and then account for all of the consumption. Ugh!

It is too bad what Brazil did back around 2015 for this.

When we sailed on another line they had them close the stores and mark up all of the items in the shops to reflect this higher price. Guess what? Right, no one bought anything.

To me they should be encouraging cruise lines to visit Brazil not do things to make it more difficult.

They also required that all cruise members have visas and ones that were quite costly.

Keith

It is not just Brazil :(

Some European countries/ports are now imposing taxes (VaT) to be charged on purchases made on-board.

For example on our cruise from Lisbon to Rome last August, Portugese tax of 23% was added to purchases made in the Boutiques and on Spa products.

I am not sure whether non-Europeans can claim back the tax on departure from the EU.

For included alcohol it is actually the cruise line that will pay the local government. The line has to inventory all of the alcohol and review it with the local government and then account for all of the consumption. Ugh!

 

It is too bad what Brazil did back around 2015 for this.

 

When we sailed on another line they had them close the stores and mark up all of the items in the shops to reflect this higher price. Guess what? Right, no one bought anything.

 

To me they should be encouraging cruise lines to visit Brazil not do things to make it more difficult.

 

They also required that all cruise members have visas and ones that were quite costly.

 

Keith

Great post! I heard once that the U.S. charges Brazil a lot of money for a visa and therefore they charge us a hefty fee to us - not sure if that is true. My DH holds two passports - U.K. and U.S. so he uses his U.K. passport in order to avoid getting a visa.

Onboard the ship for one Brazilian cruise Regent stated that the entertainment group could not perform while in Brazilian waters because they didn't have a visa. This was about 3 years ago. It sounds as if visas are now required for all crew members.

Having just been in Brazilian waters for 7 days we were aware of the prices in the Boutique being higher so we just didn't go in there. Not a big deal.

When we were in Brazilian waters and the tax was in effect, Mariner staff clearly communicated (in Passages, and also in daily announcements) when the tax went into effect, and when it stopped. There was several days advance warning so that one could make any urgent purchases prior to when the Brazilian tax started.

Great post! I heard once that the U.S. charges Brazil a lot of money for a visa and therefore they charge us a hefty fee to us - not sure if that is true. My DH holds two passports - U.K. and U.S. so he uses his U.K. passport in order to avoid getting a visa.

True. This is called a reciprocity fee. Basically, it's a "we charge your people what you charge our people." There becomes a bit of a chicken-or-the-egg argument as to who started it when the fees get high. The U.S. has a service fee that everyone gets charged to cover the cost of issuance of the specific type of visa. Then it adds on a reciprocity fee to match whatever the other country charges for the comparable visa. So it can be said that the U.S. started it with the service fee, but if the other country charges more than that amount, one could say that they "started" the higher amount.

Ain't diplomacy grand?

Onboard the ship for one Brazilian cruise Regent stated that the entertainment group could not perform while in Brazilian waters because they didn't have a visa. This was about 3 years ago. It sounds as if visas are now required for all crew members.

Each country has its own visa scheme, but many have two (or more) types of visas that crew members can have. One will allow them to go ashore, and that usually costs more. Another lets them be on a ship in the country's port, but doesn't allow them to go ashore. Others have variations in between. Sounds like Brazil is making all crew members get the more expensive one. I wonder if it is allowing them all ashore?

True. This is called a reciprocity fee. Basically, it's a "we charge your people what you charge our people." There becomes a bit of a chicken-or-the-egg argument as to who started it when the fees get high. The U.S. has a service fee that everyone gets charged to cover the cost of issuance of the specific type of visa. Then it adds on a reciprocity fee to match whatever the other country charges for the comparable visa. So it can be said that the U.S. started it with the service fee, but if the other country charges more than that amount, one could say that they "started" the higher amount.

 

Ain't diplomacy grand?

 

 

 

Each country has its own visa scheme, but many have two (or more) types of visas that crew members can have. One will allow them to go ashore, and that usually costs more. Another lets them be on a ship in the country's port, but doesn't allow them to go ashore. Others have variations in between. Sounds like Brazil is making all crew members get the more expensive one. I wonder if it is allowing them all ashore?

The US charges certain countries VISA fees because many of their visitors overstay their VISA's. Supposedly the higher fee is to help defray costs of finding those that do not leave on time. In 2015, 35,000 Brazilian overstayed. In 2016 it was reported that Brazil had by far the most total overstays from countries that do not participate in the visa waiver program – followed by Venezuela, China, Colombia and Nigeria.

IMO the reciprocity fee charged by Brazil and other Countries is just an unjustified "payback." I doubt that few US citizen overstay in Brazil.

J

As someone predicted, the imposed 25% tax in Brazil for spirits is only for what is considered "premium" grade. However, I am perfectly fine with the spirits that my husband and I ordered for our cabin as well as what we order in the lounges, as I find some of them to be what I consider "premium", but maybe I just don't have a highly developed palate.

As someone predicted, the imposed 25% tax in Brazil for spirits is only for what is considered "premium" grade. However, I am perfectly fine with the spirits that my husband and I ordered for our cabin as well as what we order in the lounges, as I find some of them to be what I consider "premium", but maybe I just don't have a highly developed palate.

Agree! I also consider the alcohol offered on Regent includes top shelf/premium but there are a few "ultra top shelf" brands. In our 30 cruises, we have yet to try them. In terms of wine, there are some really great premium wines that I would love but 1 bottle of wine between the two of us isn't quite enough so I don't bother purchasing them. Instead, we use OBC's to go to the wine pairing lunch. This gives us tastes of the higher wine brands along with some darn good food!

I do get the issue about reciprocity for passengers.

I don't get if for the crew though.

And I don't get the issue of the tax particularly on the shops. I think what the locals are missing is that most of the items in the ships shops don't compete with local goods sold in Brazil. I know because of the changes that at least one cruise line (not a luxury line) started to cruise less to Brazil and just think they are being foolish because they should be encouraging and not discouraging tourism. Just my two cents but they certainly didn't ask me for my opinion. LOL.

Keith

I do get the issue about reciprocity for passengers.

 

I don't get if for the crew though.

 

And I don't get the issue of the tax particularly on the shops. I think what the locals are missing is that most of the items in the ships shops don't compete with local goods sold in Brazil. I know because of the changes that at least one cruise line (not a luxury line) started to cruise less to Brazil and just think they are being foolish because they should be encouraging and not discouraging tourism. Just my two cents but they certainly didn't ask me for my opinion. LOL.

 

Keith

The Cruise ships have lots of issues when in Brazilian water.

On the Mariner (Frank was GM) a couple of years ago, the Brazilian govt said that they were going to do ship cleanliness and food hygiene inspections. Their "list' was far more stringent than the US inspection process and with heavy fines for violations. The crew had to work endless hours above and beyond their regular duties for several days before the ship entered Brazil. It took quite a toll on the crew.

j