Spanish tax

[smush21]

Hi all from our last cruise in 2013 on Liberty ex barcelona I think I recall a Spanish tax on all purchases on board"

Can anyone tell me if this still exists?

Also if we want a drinks package and purchase before we board is the tax still applied. Thanks in advance.

 

 

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[tidygirl]

Yes it does still exist we were there Sept 2014.

Not sure about the drinks packages but I did read somewhere if you purchase ahead of time you don't have to pay it.

[CCFC]

My experience is that if you have the drinks package it isn't affected. If you pay at the bar and you are in Spanish waters you get the tax added.

[smush21]

Good to know. So if I want a drink package I'll get it before I leave.

 

 

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[hallasm]

My experience is that if you have the drinks package it isn't affected. If you pay at the bar and you are in Spanish waters you get the tax added.

Not only in Spanish waters if all ports of call for the cruise is within th EU

Different rules if you visit ports not in the EU

[steamboats]

It´s a European law and it still exists. It´s valid for all cruises out of Spain which do not have a non EU port.

 

When you buy the drink package in advance online you don´t pay the Spanish VAT. It´s only valid for all purchases made onboard including drinks.

 

steamboats

[cublet]

Hello,

 

Just a small piece of clarification.

 

VAT is charged on all purchases where all the ports of call are in ports/countries that are under EU VAT regulations. Whilst in the EU, Gibraltar and The Canaries are NOT under VAT regulations so cruises should not charge VAT on purchases if either of these are on the itinerary.

 

Regards,

 

Cublet

[smush21]

Thanks for the info. What about Palma. I know it's part of Spain but so are the canaries?

 

 

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[A&L_Ont]

Would it be on all purchases if you board and disembark in Rome? We are sailing on Allure this summer.

[TravelerThom]

Thanks for the info. What about Palma. I know it's part of Spain but so are the canaries? ...

I am GUESSING that you are referring to the city of Palma de Mallorca on the island Majorca in the Balearic Islands; it is in the Spainish VAT zone. The island of La Palma (more fully San Miguel de La Palma) in the Canaries is not in the Spanish VAT zone. The city of Las Palmas de Gran Canaria, is also in the Canaries and not in the Spainish VAT zone.

[robtulipe]

Would it be on all purchases if you board and disembark in Rome? We are sailing on Allure this summer.

 

It not where you sale from in the EU zone but what ports are visited that determines whether the European VAT applies.

Since the Allure itineraries this summer doesn't sail out of the EU zone all cruises will have that VAT tax on onboard purchases. :(

Edited February 13, 2015 by robtulipe

[SadmanCruiser]

Would it be on all purchases if you board and disembark in Rome? We are sailing on Allure this summer.

 

Just sailed out of Rome in January 2015 and Amsterdam last year - no VAT.

Cruises leaving the UK do not charge VAT. I am sure it is only cruises leaving Spain, or whilst calling at Spanish ports that charge it

[A&L_Ont]

It not where you sale from in the EU zone but what ports are visited that determines whether the European VAT applies.

Since the Allure itineraries this summer doesn't sail out of the EU zone all cruises will have that VAT tax on onboard purchases. :(

 

That is what I expected. I will need to prepay for all that we can then.

 

Thanks for the answer.

[steamboats]

Actually all EU countries should collect that VAT on cruises. But this law is so complicated that even tax experts don´t know what it means.

 

I had cruises out of Venice where the VAT was charged and which didn´t have a non EU port.

 

I´ve never heard that cruises out of UK, Germany or Netherlands had that VAT charged but most likely those cruises do have a non EU port (like Guernsey which like the Canaries is not part of the VAT regulations).

 

On our Oasis TA Eastbound we had a note in our daily that the Spanish VAT will be in effect as soon as we´re within the 12 mile zone of Malaga (our only port stop). Actually according to the law there shouldn´t have been the VAT as the cruise started in the US.

 

So far all I was able to find out is: RCI (and other cruise lines) do charge the extra Spanish VAT (10% for food and beverages, 21% for all other purchases) on all cruises starting in Spain or - within the 12 mile zone - all Spanish ports. If the cruise has no non EU port the VAT is charged throughout the whole cruise for cruises starting in Spain (mainly Barcelona).

 

BTW I´ve been on a Costa cruise with an overnight stop in Barcelona and the Spanish VAT wasn´t mentioned at all. So as usual in Europe Costa might have paid the VAT but didn´t add it to the passenger bill (we are used to "all included" bills, all prices shown on menus or shelves do include VAT).

 

steamboats

[FinlandGuy]

Also a company needs to be VAT registered to collect VAT. Therefore the receipt on purchase must mention the sellers VAT registration number. At least NCL had it clearly printed in any purchase receipt.

[robtulipe]

Actually all EU countries should collect that VAT on cruises. But this law is so complicated that even tax experts don´t know what it means.

 

I had cruises out of Venice where the VAT was charged and which didn´t have a non EU port.

 

I´ve never heard that cruises out of UK, Germany or Netherlands had that VAT charged but most likely those cruises do have a non EU port (like Guernsey which like the Canaries is not part of the VAT regulations).

 

On our Oasis TA Eastbound we had a note in our daily that the Spanish VAT will be in effect as soon as we´re within the 12 mile zone of Malaga (our only port stop). Actually according to the law there shouldn´t have been the VAT as the cruise started in the US.

 

So far all I was able to find out is: RCI (and other cruise lines) do charge the extra Spanish VAT (10% for food and beverages, 21% for all other purchases) on all cruises starting in Spain or - within the 12 mile zone - all Spanish ports. If the cruise has no non EU port the VAT is charged throughout the whole cruise for cruises starting in Spain (mainly Barcelona).

 

BTW I´ve been on a Costa cruise with an overnight stop in Barcelona and the Spanish VAT wasn´t mentioned at all. So as usual in Europe Costa might have paid the VAT but didn´t add it to the passenger bill (we are used to "all included" bills, all prices shown on menus or shelves do include VAT).

 

steamboats

Our around the UK cruise out of Southampton did the Guernsey stop to make it VAT free. In fact the seas were too rough to be tendered in but the ship did go to St. Peter Port anyway to fulfill that requirement even though we weren't able to go on shore there.

Ships are usually subject to local taxes when in port even on repositioning like our TA cruises. This is done when in US ports like Pt. Everglades and Galveston on drinks purchases but it doesn't impact onboard store sales as these are typically closed which is an requirement in almost all ports.

On our last Spring's TA crossing on Serenade we received a letter in our cabin that once the ship reached our first mainland port, which was Malaga, the ship liquor store would close and all other onboard sales would be subject to the Spanish VAT. I thought this was rather stupid as all the ship had to do is to sail between ports outside the 12 mile limit. Guess what that original VAT letter was rescinded by another as that is what the ship did to allow non-VAT taxed and liquor sales to continue between the three Spanish mainland ports we went into.

Edited February 14, 2015 by robtulipe

[cublet]

Hello,

 

A number of correct, half correct and incorrect postings have been made. I write as an accountant not just a cruiser.

 

 

1. Spanish VAT at the lower rate is charged on DRINK/RESTAURANT purchases purchased on board a ship either berthed or within territorial waters (12 miles) wherever the cruise started or finishes unless a NON EU VAT port of call is on the itinerary (but see 5 and 7 below).
    
    
   
2. A higher rate of Spanish VAT applies if the cruise STARTS in Spain and stays in EU VAT waters on the purchases of GOODS and SERVICES in addition to the VAT in point 1 above.
    
    
   
3. Smush21’s posting has been correctly answered by TravelerThom.
    
    
   
4. Italian VAT is charged on GOODS only on cruises starting and finishing in Italy and staying in the EU VAT area.
    
    
   
5. I’m sorry but although Steamboats is correct – as per point 1 above Spanish VAT should not be charged on cruises with a non-EU VAT port of call on the itinerary, but the Spanish tax authorities deem the TA cruise to ‘start’ where it arrives in Europe!
    
    
   
6. Where I have used the term ‘Port of Call’, it must be more than a ‘technical stop’ (eg refuelling) – passengers must to be able to disembark.
    
    
   
7. A&L_Ont is/are in for an interesting time. In theory for cruises starting and finishing in Italy then Italian VAT would apply in and between all Italian ports of call on purchases of GOODS (point 4) and Spanish VAT would be charged whilst the ship is in Spanish territorial waters as per point 1 above. However some common sense has prevailed and some backroom deal has been done where only one country’s VAT regime will apply for the entire cruise. HOWEVER what I do not know (for the Allure) is whether the cruises are Spanish or Italian as they have both starting points. I doubt if two different taxing regimes will apply to different passengers depending on where they boarded the ship. But unless there is a non EU VAT port of call, then someone’s VAT will be applied.
    
    
   
8. Indeed for a ‘person’ to charge VAT they must be registered (or be subject in the UK to (a) repaying the VAT illegally charged plus (b) a fine of 100% of the VAT illegally charged). However a receipt in the UK need not show the VAT registration number unless (a) the customer him/her/itself is also registered for VAT or (b) a non-registered person specifically asks for a VAT receipt. IF neither applies then it would not be possible to determine whether or not any VAT from any country had been charged (ie showing inclusive prices) or not. I would expect RCI (and all major cruise lines) would have offices registered in most EU countries (with a coastline anyway) but keeping the computer/till system up to date may be too much.
   

 

 

Regards,

 

Cublet.

Edited February 14, 2015 by cublet

[steamboats]

Cublet,

 

Actually the EU law is the same for all EU countries. So also Italy has to charge for drinks/food and not just only other goods. But the countries interpret the law in a very different way :D.

 

Your No. 6 is not totally correct. A "technical" stop is sufficent. At least that´s what MSC has done during the days they weren´t able to stop at Tunis due to the political situation. The authorities came onboard and cleared the ship although not being docked in port. The VAT was the only reason the MSC ships did not skip Tunis from the itinerary but actually went there although this was a big detour. The ships never have been in port but at sea within the 12 mile zone of Tunisa.

 

My DH did a lot of research on this topic. He even contacted EU law experts but it´s a pretty complicated matter and each country has its own interpretation. Some countries even charge the cruise lines sort of a "flat rate". Some - especially the German ones like AIDA or TUI Cruises - cruise lines do not charge the passengers (the VAT is included in the prices shown onboard).

 

steamboats

[cublet]

Hello,

 

I don't want to make an issue of it, but if the authorities came on board and cleared the ship then that was not a 'technical stop' but an arrival - berth or no berth.

 

Regards,

 

Cublet

Edited February 14, 2015 by cublet

[steamboats]

I don't want to make an issue of it, but if the authorities came on board and cleared the ship then that was not a 'technical stop' but an arrival - berth or no berth.

 

Yes, of course, but you said "passengers must to be able to disembark". No, it´s sufficent when it´s regarded as an arrival.

 

But as I said it´s a pretty complicated topic. We even asked the cruise lines and they didn´t know the "rules".

 

steamboats

[robtulipe]

Cublet,

Your No. 6 is not totally correct. A "technical" stop is sufficent. At least that´s what MSC has done during the days they weren´t able to stop at Tunis due to the political situation. The authorities came onboard and cleared the ship although not being docked in port. The VAT was the only reason the MSC ships did not skip Tunis from the itinerary but actually went there although this was a big detour. The ships never have been in port but at sea within the 12 mile zone of Tunisa.

I don't if Princess was adhering exactly to EU regulation but that is exactly what happen for the Guernsey stop I mentioned above and that cruise continued to be a VAT free one that offered onboard duty/tax free shopping and liquor sales.

Official came out in the pilot boat from shore, boarded the Caribbean Princess and I don't recall anyone from the ship going to shore as there was only one trip out for the pilot boat as it waited for who ever came onboard to return them to St. Peter Port.

Edited February 14, 2015 by robtulipe