Spanish tax, UBP and onboard credit on the Norwegian Epic?

[WouterC]

Next year, we will be cruising on the Norwegian Epic, our fourth cruise (previously we sailed MSC 2x and Royal Carribean 1x).

 

Reading about the Spanish added VAT makes me worry, we're usually careful where and how we spend our money. The 15% gratuity on drinks + 10% Spanish VAT on all purchases gave me a bit of a scare actually.

 

Secondly, all if this VAT stuff is very, very confusing as you will perhaps see reading on.

 

I read bits and pieces in several posts and websites and here is what I understand so far:

 

- Spain charges an extra tax when you buy something on a cruise that has Spain as the port of origin (Barcelona in our case) and which does not leave Europe during the cruise.

 

- The extra VAT in the last couple of years was 8% for food and beverages and 18% on services (like excursions), right now it is at 10% and 20%.

 

- You can try to reclaim VAT if you are from the US (which we are not, we live in Belgium).

 

- Some cruise companies reportedly 'absorb' the extra VAT

- Our Travel Agent checked with Norwegian, who supposedly said they wouldn't charge the extra VAT. However, they went bankrupt, so it's not possible to check with them anymore. Our new TA says Norwegian will charge the extra VAT.

 

From what I understand so far, you can only avoid the extra 10% and 20% from the Spanish government by pre-booking and pre-paying:

 

• drinks package
  
• excursions
  
• restaurants
  

I was also thinking that perhaps by buying and pre-paying on-board credit certificates that might avoid the 10% extra tax. But I also read that NLC bills your account for each purchase, then deducts the on-board credit the last day of the cruise.

 

So I wonder if that means they will deduct the credit after adding the gratuity + tax?

 

Comparison

Let's say our tab, for 2 persons, is:

- $250 spent on drinks

- $50 for 2 specialty restaurants

- $300 spent on excursions

- $100 jewelry & gifts

 

• Cost without Spanish tax
  
  • $345 ($300 + 15% gratuities) for food & drinks
    
  • $345 for excursions
    
  • $100 for jewelry & gifts
    

Total:$790

 

 

• Cost with the Spanish tax:
  
  • $375 ($300 + 15% gratuities + 10% Spain tax) for food & drinks
    
  • $360 ($300 + 20% Spain tax) for excursions
    
  • $120 ($100 + 20% Spain tax) for jewelry & gifts
    

Total:$855

 

 

• Difference: $65
  

Questions

 

• Does anyone know if Norwegian in fact charges the extra VAT or not?
  
• Has anyone recently sailed on the Epic from Barcelona and seen the extra VAT reflected on their bill? How much was it?
  
• Does anyone know if there is a difference for residents inside and outside of Europe?
  
• If we prebook and pre-pay beverage packages, specialty dining and excursions beforehand, will we be able to avoid the extra VAT
  
• Is pre-ordering onboard credit a good idea to avoid the Spanish VAT?
  

I know these are a lot of questions, but then again it's all very confusing.

Edited October 24, 2013 by WouterC

[CruiseIreland]

Hi. We brought on wine and purchased a wine package as well. We were charged an additional 25% on these and drinks onboard. I can't see how being from EU or US would affect your onboard experience but I don't know about non EU claiming back the tax. I also can't see how pre-purchasing OBC would help - I can't believe they charge gratuity and VAT on that?

 

I do think that you can avoid the 10% by prepaying the specialty restaurants and excursions. We were not able to pre-book the wine package despite phoning Miami. Ken

[SteveH2508]

<snip>Questions

 

• Does anyone know if Norwegian in fact charges the extra VAT or not?
  
• Has anyone recently sailed on the Epic from Barcelona and seen the extra VAT reflected on their bill? How much was it?
  
• Does anyone know if there is a difference for residents inside and outside of Europe?
  
• If we prebook and pre-pay beverage packages, specialty dining and excursions beforehand, will we be able to avoid the extra VAT
  
• Is pre-ordering onboard credit a good idea to avoid the Spanish VAT?
  

I know these are a lot of questions, but then again it's all very confusing.

 

 

1. Yes - NCL charge the VAT - they do not absorb it.
   
2. 3 years since I sailed from Barcelona so cannot answer that one.
   
3. No difference for residents from in or outside Europe (save reclaiming VAT on big non-consumable purchases).
   
4. Pre-paying may dodge the VAT - I believe it does in UK - don't know about Belgium.
   
5. Pre-ordering OBC will make no difference - the account is debited for each drink etc. with the VAT and Gratuity applied.
   

[WouterC]

Thank you for your helpful responses SteveH2508 and CruiseIreland!

 

1. Yes - NCL charge the VAT - they do not absorb it.
   
2. 3 years since I sailed from Barcelona so cannot answer that one.
   
3. No difference for residents from in or outside Europe (save reclaiming VAT on big non-consumable purchases).
   
4. Pre-paying may dodge the VAT - I believe it does in UK - don't know about Belgium.
   
5. Pre-ordering OBC will make no difference - the account is debited for each drink etc. with the VAT and Gratuity applied.
   

[goose30]

Simple solution to the problem. DON"T GO O A TRIP THAT LEAVES FROM SPAIN.

 

It is only a matter of time before all EU countries start adding VAT. That is one of the disadvantages of living under socialism. The money to run the government has to come from somewhere.

 

OP in your example it is only $65 cut down on a few drinks if that is too much.

[4774Papa]

We have take two NCL cruises out of Barcelona.

The first one went to the Canary Islands, Morocco and Malaga. We were only charged Spanish VAT when the ship was within Spanish waters.

The second one was the Western Med Epic cruise that only stops in EU ports. We were charged VAT on everything we purchased on board.

I don't think we were charged for the excursions that we booked prior to the cruise.

[lizboyle]

I called NCL and prepaid our UBP and no vat was added. We ate in speciality restaurants and they didn't add vat. It's added to all drinks ( if you don't have the UBP) and anything bought in the on board shops. Can't say about excursions as we didn't use NCL for them. We just returned last week btw. Hope that helps.

[WouterC]

Thanks all. Liz, who did you use for your excursions and how did that work out?

 

 

 

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[Love my butler]

Simple solution to the problem. DON"T GO ON A TRIP THAT LEAVES FROM SPAIN.

 

It is only a matter of time before all EU countries start adding VAT. That is one of the disadvantages of living under socialism. The money to run the government has to come from somewhere.

 

OP in your example it is only $65 cut down on a few drinks if that is too much.

 

This.

[FinlandGuy]

If I remember correctly the receipts will indicate the VAT and the NCL's VAT registration number. Therefore I really believe that the VAT goes to Spanish tax and doesn't end at NCL.

[Sparkles87]

Am I understanding this right.... :confused:

 

Because I am sailing from Barcelona every time I buy a drink throughout my cruise I will be charged the price of each drink plus 25% (15% service and 10% Vat) :eek:

 

Don't get me wrong - I like a drink and I have not intentions of skimping on my spending - I go on holiday to have a great time but I have 1 question - what are the price ranges for cocktails because I think I might need to do some extra budgeting!!

[Sparkles87]

The following quote is from NCLs UK site....

 

Shopping on-board - tax & duty-free

With the exception of Hawai'i itineraries, our on-board stores carry tax- and duty-free items like liquor, tobacco, fragrances and cosmetics, as well as casual beach and cruising apparel. You’ll also find designer watches, stunning pieces of jewellery and more. Please note that in order to comply with Spanish and Italian tax regulations we are required to charge Spanish and Italian VAT on applicable retail items purchased on board on cruises from/to Barcelona and from/to Venice and Rome, as well as on all other cruises whilst the ship is in Spanish and Italian waters.

 

Reading this it appears that only items bought in the shops are subject to this extra VAT tax charge, not drinks or meals. Thats certainly how I'm reading it.

[Demonyte]

Am I understanding this right.... :confused:

 

Because I am sailing from Barcelona every time I buy a drink throughout my cruise I will be charged the price of each drink plus 25% (15% service and 10% Vat) :eek:

 

Yes, BUT only if the ship doesn't call outside EU tax area.

 

Don't get me wrong - I like a drink and I have not intentions of skimping on my spending - I go on holiday to have a great time but I have 1 question - what are the price ranges for cocktails because I think I might need to do some extra budgeting!!

 

Most beers are around $5 and up, simple cocktails (liqour and mixer) are around $6 and up and more special drinks (martinis etc) around $8 and up.

[bmwman]

Yes, BUT only if the ship doesn't call outside EU tax area.

 

 

 

Most beers are around $5 and up, simple cocktails (liqour and mixer) are around $6 and up and more special drinks (martinis etc) around $8 and up.

 

THERE IS VAT ON GOODS FOOD AND DRINK (and SPA) at different rates chargeable if the ship leaves from an EU port and does not call outside the EU. This affets the EPIC. Spain has multiple rates. Italy only one at present

 

Whilst non EU passengers can get VAT back on goods there is a de minimus figure of I think $108.

 

The Spanish VAT rates are 21% and 10% and areapplied as appropriate across the ship. The Duty free shop however did absorb the VAT when it was 19% but I do not know the current position. What I do know is VAT law applies on the ship in the EU -

[Tiggertastic]

Book any specialist or wine packages online before you board - they avoid the charges

 

The shops were absorbing the 10% when we were on but not the bars

[WouterC]

Book any specialist or wine packages online before you board - they avoid the charges

 

The shops were absorbing the 10% when we were on but not the bars

 

@Tigertastic: I did not find any wine packages online in my mynlc account , do they show up closer to departure date? Sure there is corks&caps, but we don't drink beer.

 

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[CruiseIreland]

@Tigertastic: I did not find any wine packages online in my mynlc account , do they show up closer to departure date? Sure there is corks&caps, but we don't drink beer.

 

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I was unable to book the wine package before boarding. I even rang Miami but no luck. There was a rumour around CC that NCL was withdrawing the Viva Vino package but we got it onboard. It was, however, not prominently advertised unlike UBP and Corks & Caps. Ken

[WouterC]

I was unable to book the wine package before boarding. I even rang Miami but no luck. There was a rumour around CC that NCL was withdrawing the Viva Vino package but we got it onboard. It was, however, not prominently advertised unlike UBP and Corks & Caps. Ken

 

I did notice you can buy bottles of wine in your NLC account (myNlc). So I am guessing you could select a couple bottles and pre-pay these.

 

Another possibility: buy wines when you are at shore and then pay the corkage fee upon embarkation.

 

We're staying in Barcelona pre-cruise, so that's definitely a possibility. I'm guessing you're not paying extra VAT on the corkage fee, but even if so it's a small number so shouldn't matter too much. I did a quick comparison of wines, and buying this wine in port should be about $20 cheaper then buying it on board.

 

Practical question: does anyone know, if you buy or bring a bottle, where it should be stored?

 

Can your waiter keep it safe for you (I'm guessing you'll have to dine in the same restaurant then though) or do you keep in in your stateroom and bring it to the restaurant (we could, but it seems a bit clumsy)?

[Demonyte]

Practical question: does anyone know, if you buy or bring a bottle, where it should be stored?

 

Can your waiter keep it safe for you (I'm guessing you'll have to dine in the same restaurant then though) or do you keep in in your stateroom and bring it to the restaurant (we could, but it seems a bit clumsy)?

 

You can give the bottle(s) to a waiter/bartender to be stored (or ask a Maitre D') and you'll get a receipt for it. Then at any restaurant or bar you can give them the receipt and ask the bottle to be retrieved - no need to eat in the same restaurant or drink only at one bar.

 

We always keep the wine bottles in our cabin and if we want white wine to be chilled in advance, take one or two bottles at the time and give them to be stored in ship's fridge during the day so that the wine is chilled by dinner. Nothing stops you brining multiple bottles at once but at least I'd tip them properly for having to handle large quantity at the time. We don't usually drink reds but those we just carry with us when we arrive to dinner.

Edited November 21, 2013 by Demonyte