Celebrity has to charge Spanish tax on all purchases

[stipmom]

Made onboard each day of the cruise when you sail from Barcelona if you do not go to a non EU port.Tax was 10% on food and drink and 21 or 23% on gift shop purchases.

[Pushka]

Made onboard each day of the cruise when you sail from Barcelona if you do not go to a non EU port.Tax was 10% on food and drink and 21 or 23% on gift shop purchases.

 

 

Interesting. Lucky we are going to Montenegro then. I think that isn't in the EU? Phew. It isnt. :p

 

That will mess up the drinks package though for other cruises.

Edited May 23, 2015 by Pushka

[curtdesilets]

It seems appalling to me that a country that is in financial ruins would stick it to International Cruise Passengers to pay off their Federal Debt.

 

Thanks for the warning.

 

I bet the cruise lines do not inform you of this until you are on board.

 

Apparently some US cities are doing the same thing.

 

Eventually they may have to enforce a $15 minimum wage, if they dock in the city of L.A. ??? :eek:

[curtdesilets]

From a Royal Caribbean Blog, September 2014.

 

Royal Caribbean is joining other cruise lines in protesting a new tourist tax that is about to go into effect in Spain. The new tax would charge cruise operators the same rate of 2.5 Euros that is currently charged to tourists staying in 5 star hotels for every passenger.

 

The cruise lines argue it isn't fair since all passengers on the ship will be subject to the same rate as those staying at a 5 star hotel, when clearly not all passengers are in the same type of accommodations.

 

Francisco Reddel, port manager Mediterranean and Middle East Operations of Royal Caribbean was at the Balearic Cruise Forum 2012 in Palma de Mallorca to join in the chorus of complaints about the new tax law.

[curtdesilets]

Here are the details:

 

IVA (VAT) is European tax legislation applicable when travelling within the EU.

 

When purchasing items on board when the tax is payable, prices displayed are exclusive of this tax and the applicable percentage of IVA tax will be added to the advertised price upon purchase. The IVA element will be itemised separately on your receipts

 

Information on when this tax is payable will be communicated to you prior to departure and will also be confirmed on board via the ships newspaper.

 

During the times on Mediterranean Fly Cruises where the higher rate of 21 / 22% IVA tax will be charged, you will be unable to purchase liquor and tobacco products from the shops on board for taking back to the UK.

 

Summary Of IVA (VAT) Tax Amounts

 

Spanish 10% IVA tax is applicable to all bar purchases, select dining cover charges and room service charges when in Spanish waters only.

 

Spanish 21% IVA tax is applicable to purchases made in the on board shops, photo gallery and products purchased in the spa (excluding treatments and services) when the cruise starts from a Spanish port.

 

An Italian 22% IVA tax is applicable to purchases made in the on board shops, photo gallery and products purchased in the spa (excluding treatments and services) when the cruise starts from an Italian port.

[Dylandude]

This is a rip off. We were caught with this tax when we cruised out of Malaga with RCI in 2015.

It's basically a tax on tourists to help offset the country's deficit.

Compare this to the forward thinking of the Republic of Ireland's government.

To encourage tourism, spending and visitor numbers to Ireland their Government removed Airport Duty Tax despite having a crippling deficit.

[steamboats]

The VAT is not a rip off for tourists. It´s a EU regulation.

 

You have to pay the VAT on all cruises out of EU ports which don´t hit a non EU port. If there´s a non EU port you only pay the VAT within the local waters of the EU country (RCI defined this as "1 hour prior to arrival, 1 hour after departure").

 

I paid the British VAT for a magnet I bought on the Anthem of the Seas on a pre inaugural out of Southampton (no port stop).

 

BTW you pay the Florida state tax for all purchases made onboard while in a port in Florida until you are leaving the US waters (3 mile zone).

 

So the "Spanish" VAT is pretty much the same as the Florida state tax.

 

And just one remark, this regulation is in effect since 2006. So almost 10 years now. It´s nothing new.

 

New is the Spanish tourist tax. But that has nothing to do with the VAT.

 

steamboats

[e11wa]

We coped this on RCI Liberty Of The Seas out of Barcelona in June '14.

 

Very disappointed, but at least we were able to get (most) of the VAT on major purchases back.

 

The tax back agent they used, however, take a $20euro cut of your rebate for your troubles. thanks for that!

[Beamafar]

This is a rip off. We were caught with this tax when we cruised out of Malaga with RCI in 2015.

It's basically a tax on tourists to help offset the country's deficit.

Compare this to the forward thinking of the Republic of Ireland's government.

To encourage tourism, spending and visitor numbers to Ireland their Government removed Airport Duty Tax despite having a crippling deficit.

 

We (Ireland, that is) also reduced VAT on hotel rooms and dining in restaurants from 13% to 9% to boost the tourism industry as we value custom from visitors to our shores and recognise how important it is to the economy to give tourists an experience that will want them coming back for more without them feeling that they're being ripped off at every turn.

[Pushka]

So we should wait until we have left the port for 60 minutes before upgrading our drinks package?

 

I will make a point of asking this in August to see if we are told the facts.

[DirtyDawg]

We coped this on RCI Liberty Of The Seas out of Barcelona in June '14.

 

Very disappointed, but at least we were able to get (most) of the VAT on major purchases back.

 

The tax back agent they used, however, take a $20euro cut of your rebate for your troubles. thanks for that!

 

Why are people getting their knickers in a twist? The VAT/IVA is REFUNDABLE for tourists from outside the EU. Just get receipts and apply for the refund at the airport before you leave. There is a fee for this but at 20%+ there is a lot of VAT/IVA you can get back.

Edited May 23, 2015 by DirtyDawg

[Wiltonian]

This, of course, is why almost every Eastern Med cruise includes Turkey - a non-EU country.

 

But just realised I've booked for an Italy - Croatia - Malta cruise in 2016. Hmm.

 

Stuart

[steamboats]

The VAT/IVA is REFUNDABLE for tourists from outside the EU.

 

Not everyone is from outside the EU ;)! And you don´t get back the VAT you´ve paid onboard for any kind of drinks at the bar. It has to be a certain amount. You have to collect all receipts, fill in the paperwork and maybe pay the US state tax at home (or at customs).

 

Unless you buy something really expensive it´s usually not worth the trouble.

 

BTW we Europeans complain about the VAT onboard as we´re used that all prices are including the VAT. We´re not used to Service Charge plus VAT added to the price on the price tag.

 

steamboats

[Can'tstopcruising]

There is a minimum expenditure required.

 

You also need a tax free form filled out by the vendor.

 

And, yes, they do syphon off a healthy fee.

Edited May 23, 2015 by Can'tstopcruising

[e11wa]

So we should wait until we have left the port for 60 minutes before upgrading our drinks package?

 

I will make a point of asking this in August to see if we are told the facts.

 

Unfortunately you'll be up for the VAT for everything on board if you don't leave the EU...

[Michidoeme]

when we sailed out of Barcelona 2 years ago, the Spanish VAT was only applicable in Spanish waters, this was first couple of hours after sail away. Cards with this info were everywhere visible. However for drink package bought immediately when boarding, they put sticker on keycard immediately, but gave only hand-written charge note (without VAT), this was then put into their computers only later on when Spanish VAT no longer applied. Rest of cruise, we did not get charged VAT on bar or other on board purchases . And on several European cruises before or afterwards, leaving and returning to Italy, I have never noticed that we were charged tax for onboard purchases including bar. (and I am sure up to 22 % when in Italian waters would be noticeable). I must admit we only bought Celebrity clothing, souvenirs, small stuff, drinks, not expensive jewelry or art.

Edited May 23, 2015 by Michidoeme

[Pushka]

Unfortunately you'll be up for the VAT for everything on board if you don't leave the EU...

 

 

We do. We have a stop in Montenegro.

[excitedofharpenden]

This, of course, is why almost every Eastern Med cruise includes Turkey - a non-EU country.

 

But just realised I've booked for an Italy - Croatia - Malta cruise in 2016. Hmm.

 

Stuart

 

You're ok because you stop in Kotor.

 

Phil

[curtdesilets]

It seems to me it is in the best interest of cruise lines to:

 

1) always have a port in a non-EU country or,

 

2) Play a trick like one CC member here said where they hand write the purchases and bill you later when you are outside Spanish waters.

 

This seems more or less a game between the tax hungry governments and the profit happy cruise lines. :eek:

 

- - -

 

These taxes will ABSOLUTELY piss off most of their American passengers, whom they are marketing to fill the European cruises. Coupled with insanely high international airfare, many Americans will say, hey it's just not affordable.

 

Cruise passengers already pay all sorts of port charges and other fees not listed in the original cruise fare, in addition to those fees slapped onto international airfares. This Spanish VAT ultimately will have a negative economic effect in terms of drawing American dollars.

[steamboats]

when we sailed out of Barcelona 2 years ago, the Spanish VAT was only applicable in Spanish waters, this was first couple of hours after sail away.

 

Yes, that´s applicable when you do have a non EU port. Then they only charge in Spanish waters (1 hour prior to arrival, 1 hour after leaving).

 

Those cruises which don´t have a non EU port you have to pay the VAT 24/7 (like a 7 nighter out of Barcelona with ports in France, Spain and Italy only).

 

So have a drink at the World Bar:

 

14 $ (says the menu)

1.4 $ VAT

2.52 service charge

 

and your drink is: 17.92 $ in total

 

You shouldn´t pay any VAT when you upgrade your drink package from Classic to Premium by calling X in advance. This is not regarded as a purchase in Spain then.

 

steamboats

[DYKWIA]

It seems to me it is in the best interest of cruise lines to:

 

1) always have a port in a non-EU country or,

 

2) Play a trick like one CC member here said where they hand write the purchases and bill you later when you are outside Spanish waters.

 

This seems more or less a game between the tax hungry governments and the profit happy cruise lines. :eek:

 

- - -

 

These taxes will ABSOLUTELY piss off most of their American passengers, whom they are marketing to fill the European cruises. Coupled with insanely high international airfare, many Americans will say, hey it's just not affordable.

 

Cruise passengers already pay all sorts of port charges and other fees not listed in the original cruise fare, in addition to those fees slapped onto international airfares. This Spanish VAT ultimately will have a negative economic effect in terms of drawing American dollars.

 

This ruling will only come into effect on a small percentage of cruises. The Majority of cruises seem to call in at one or more non EU ports.

 

The main cruises to be wary of are likely to be those 7-10 day cruises around the northern western med - those plying back and forth between Spain-South of France-Italy.

 

Most other itineraries seem to include at least one non EU Port (the common ones are Gibraltar, Montenegro, Turkey, Israel)

[curtdesilets]

This ruling will only come into effect on a small percentage of cruises. The Majority of cruises seem to call in at one or more non EU ports.

 

The main cruises to be wary of are likely to be those 7-10 day cruises around the northern western med - those plying back and forth between Spain-South of France-Italy.

 

Most other itineraries seem to include at least one non EU Port (the common ones are Gibraltar, Montenegro, Turkey, Israel)

 

Looks like the cruise lines have already adapted with the loophole that if just one of the several ports is non-EU, then the VAT does not apply.

 

The 10% tax within Spanish waters makes sense and apparently is applied even in Florida, a state with a governor who detests taxes.

Edited May 23, 2015 by curtdesilets

[DirtyDawg]

It seems to me it is in the best interest of cruise lines to:

 

1) always have a port in a non-EU country or, Not always practical

 

2) Play a trick like one CC member here said where they hand write the purchases and bill you later when you are outside Spanish waters. Tax evasion is illegal

 

This seems more or less a game between the tax hungry governments and the profit happy cruise lines. :eek:

 

- - -

 

These taxes will ABSOLUTELY piss off most of their American passengers, whom they are marketing to fill the European cruises. Coupled with insanely high international airfare, many Americans will say, hey it's just not affordable.

 

Cruise passengers already pay all sorts of port charges and other fees not listed in the original cruise fare, in addition to those fees slapped onto international airfares. This Spanish VAT ultimately will have a negative economic effect in terms of drawing American dollars.

 

I don't think the Spanish government cares if their VAT pisses off American tourists. They have bigger problems to worry about. And those insanely high international airfares are the result of the jump in demand from American tourists wanting to fly to Europe this summer because the Euro is on 'sale' this year. Last year the Euro was $1.35 U.S. It's now on sale for about $1.10.

[Azulann]

I don't think the Spanish government cares if their VAT pisses off American tourists. They have bigger problems to worry about. And those insanely high international airfares are the result of the jump in demand from American tourists wanting to fly to Europe this summer because the Euro is on 'sale' this year. Last year the Euro was $1.35 U.S. It's now on sale for about $1.10.

 

Yes, Americans are traveling to Europe by the plane and boatload these days.

I remember when the exchange was $1.50USD for 1Euro. It was back in 2008.

I plan to buy some Euros at my bank for my trip to Europe in 2016. the current rates are very good for USD exchange.

Taxes will not deter me from going on vacation. Just factor it in or just stay home and visit a local state park. But remember you need to pay a fee to visit state parks . ;)

[Cruise Junky]

this isn't new why are people getting up in arms about it now? This is way Gibralter is stopped at for a lot of Western Med. Cruises. Pick your cruise carefully if you don't want to pay it.