VAT tax charged on ship when cruising the Med?

[LegalEagle2012]

This is the response from Royal Caribbean - despite telling them we are on the Voyager from Venice they still mention Spanish waters - we are not going into any Spanish waters.

 

 

[B]VAT will be applicable to your sailing when the ship is within Spanish

waters. If the itinerary did not include the stop in Croatia then the VAT

charges would be applicable for the duration of the sailing.

 

Regards

 

James Taylor

Info UK Email Team

Royal Caribbean International, Celebrity Cruises & Azamara Club Cruises

[/b]

 

 

Karen

[podgeandrodge]

I'm confused!

 

My understanding is, if sailing from Barcelona:

 

1. You will be taxed while in Spanish waters.

2. You will be taxed at Spanish rate for the entire cruise if your ports of call are all EU ports

3. If you are visiting ANY non EU port on your itinerary there will be no tax levied after you leave Spanish waters.

 

However, on another thread I have been expressly told this is incorrect.

 

As we will sail into non Spanish waters we may avoid VAT for part of our cruise. Prepaying for a package will not avoid any appropriate taxes.

 

I can assure you once you leave Spanish waters Spanish taxes do not apply. Although the taxes of whatever territorial waters you are in may. I mainly travel on cruises from EU ports and while in port you do get stung for the taxes. If sailing Spain to Spain on a cruise you may be taxed on your duty free purchases.

 

Is Declan correct? I would like if someone could contribute to the thread below and clarify the situation, thanks.

 

http://cruiseforums.cruisecritic.com/showthread.php?t=1824190&page=17

Edited February 9, 2014 by podgeandrodge

[newport dave]

I'm confused!

 

My understanding is, if sailing from Barcelona:

 

1. You will be taxed while in Spanish waters.

2. You will be taxed at Spanish rate for the entire cruise if your ports of call are all EU ports

3. If you are visiting ANY non EU port on your itinerary there will be no tax levied after you leave Spanish waters.

 

However, on another thread I have been expressly told this is incorrect.

 

 

 

Is Declan correct? I would like if someone could contribute to the thread below and clarify the situation, thanks.

 

http://cruiseforums.cruisecritic.com/showthread.php?t=1824190&page=17

 

Declan is incorrect, as long as your cruise calls into a Non EU port then you only pay tax in Spanish waters. That's why all Med cruises from Southampton call into Gibraltar, has they're classed as 'Duty Free' even though part of the EU the same has the Canaries.

[podgeandrodge]

Declan is incorrect, as long as your cruise calls into a Non EU port then you only pay tax in Spanish waters. That's why all Med cruises from Southampton call into Gibraltar, has they're classed as 'Duty Free' even though part of the EU the same has the Canaries.

 

Thanks Dave. The cruise we are on is leaving from Barcelona and arriving in Rotterdam so all EU ports so tax all the way...

[ontheweb]

What about a cruise in the British Isles (England, Scotland, Wales, the Isle of Jersey, and Ireland)? Will we be charged a VAT tax?

[jocap]

Jersey isn't in the EU.....it's like Gibraltar for cruise ships- a little tax free haven.....

[ontheweb]

Jersey isn't in the EU.....it's like Gibraltar for cruise ships- a little tax free haven.....

 

Thank you, that's good to know. BTW, what currency do they use, the British pound, the Euro, or one of their own?

 

I hadn't even thought of the VAT tax for our upcoming cruise. In 2012 on the Epic in the Western Mediterranean, I knew about it, but was surprised when we were charged VAT for going into the ice bar.

[newport dave]

Thank you, that's good to know. BTW, what currency do they use, the British pound, the Euro, or one of their own?

 

I hadn't even thought of the VAT tax for our upcoming cruise. In 2012 on the Epic in the Western Mediterranean, I knew about it, but was surprised when we were charged VAT for going into the ice bar.

 

They use the £.

[John Bull]

Thank you, that's good to know. BTW, what currency do they use, the British pound, the Euro, or one of their own?

 

I hadn't even thought of the VAT tax for our upcoming cruise. In 2012 on the Epic in the Western Mediterranean, I knew about it, but was surprised when we were charged VAT for going into the ice bar.

 

Gib has its own £, worth one-to-one with the UK pound. You can use UK pounds (incl coin) in Gib, but you can't use Gib £ in the UK. (Same arrangements as Guernsey/Jersey currency). Try to avoid Gib money in your change.

Euros accepted everywhere, but watch exchange rates - some are sensible (eg taxi tour of the Upper Rock is £22 or 25 euros), but some are a rip-off. If you have only euros, use your cards where the exchange rate is poor - or move on.

 

I'm surprised VAT (IVA) was charged for the Ice Bar. :confused:

VAT should by law be included in the advertised price for retail

sales/admissions ashore, whether that's the price on the door or through a ship's tour.

All ships' & private tours include VAT/IVA in the price at any EU port - regardless of ship's itinerary, that's the law.

 

Ditto shop purchases, snacks & drinks.

Theoretically the ship should add the tax to its bar menus etc rather than add it later, but as long as they publicise the extra cost & when it applies, they're acting within the spirit of the law.

 

JB :)

[podgeandrodge]

For info - received this email from Royal Caribbean as I was querying the price being charged for beverage packages online for my (all EU) trip. 21% is being added to beverage packages purchased online which I think is incorrect (should be 10%) and I have emailed Royal tagain o clarify.

 

But regardless of the rate it appears that pre-purchasing online no longer avoids the VAT.

 

 

-----Original Message-----

From: InfoUK@rccl.com

Sent: Monday, March 03, 2014 2:21 PM

Subject: Re: Pre-Cruise Questions, Oasis of the Seas, 23/Sep/2014, 0528582

 

Many thanks for your email.

 

The reason that there is a higher charge for the drinks packages on this

sailing is due to Spanish VAT which is charged at 21%. On certain

sailings, due to EU VAT regulations, we are obliged to collect an

additional VAT charge for some EU member nations, such as Spain and Italy.

This charge is paid to the country of origin and is beyond our control as

it is a legal requirement.

 

Kind Regards

 

James

Info UK Email Team

Royal Caribbean International, Celebrity Cruises & Azamara Club Cruises

 

[goose30]

Simple solution, don't cruise from Spain. They want to be a PITA then don't give them the opportunity.

[Redtravel]

Just sailed on the Summit out of Bayonne NJ. Ate lunch at a specialty restaurant on the first day while ship was still docked. Paid for the lunch plus 7% NJ sales tax. It was a surprise. I know about Spain ports charging tax. On a Med cruise out of Barcelona, bought a beverage package while boarding and the tax was added. People who waited until the ship sailed a few hours did not pay the extra tax. That was in 2010. I do not know what changes have taken place. If anyone knows, please post.