18% tips and 21% spanish VAT for a coke?

[Stefan_Cruise]

Hi!

 

I friend of mine called me yesterday, he is on the Celebrity Equinox in den Med (departing from Spain) and told me that they have to pay for all things bought on the ship (beverages, beverage packages, spa, duty free, fotos, etc) the 21% spanish vat. So if you buy a bottle of wine, you have to pay the 18% tip and on top the 21% spanish vat! Even if you want a bottle of coke you have to pay the extra 21% vat! I called the celebrity hotline in the us and they agreed that this is true! If this is really true that could me very pricy!

 

On my last cruise with X in july last year in the Med you have the pay the VAT only for things in the duty free department!

 

Has anyone made that experience too?

 

Best wishes

Edited May 7, 2016 by Stefan_Cruise

[pl281]

I just did a quick google search and while from 2014 this is true - Each EU country handles VAT differently -

 

Different purchases are taxed at different rates. The VAT on bar sales and specialty restaurant cover charges is 8%, while the tax on items bought from retail shops on the ship is 18% and spa treatments can be taxed at either 8% or 18%, depending on the item.

 

Cruises that do a roundtrip itinerary from a Spanish port must charge the tax. Ships making a port of call in Spain are supposed to charge the tax while they are in port or in Spanish waters.

[GUT2407]

Not a lot Celebrity can do if Spain hits them with a VAT, but near on 40% ouch.

[villauk]

Hi!

 

I friend of mine called me yesterday, he is on the Celebrity Equinox in den Med (departing from Spain) and told me that they have to pay for all things bought on the ship (beverages, beverage packages, spa, duty free, fotos, etc) the 21% spanish vat. So if you buy a bottle of wine, you have to pay the 18% tip and on top the 21% spanish vat! Even if you want a bottle of coke you have to pay the extra 21% vat! I called the celebrity hotline in the us and they agreed that this is true! If this is really true that could me very pricy!

 

On my last cruise with X in july last year in the Med you have the pay the VAT only for things in the duty free department!

 

Has anyone made that experience too?

 

Best wishes

 

Yes, this is the case. Check out the following thread from post #88ish onwards, it was discussed at great length due to the possible changes in some European itineraries (including some previous pax's experiences) ;).

 

http://boards.cruisecritic.com/showthread.php?p=49573470&highlight=eu#post49573470

[steamboats]

Actually on a coke it´s 18% Service Charge and 10% Spanish VAT. 21% are for all non-food related services like spa, internet, purchases in the onboard shops. All bar items and specialty restaurants have the reduced VAT rate of 10%.

 

This is an EU law and all cruises which do not have a non-EU port are a subject of the VAT of the country the cruise is departing from. Same for cruises out of Italy but also out of Germany or Great Britain (most of those cruise do have a non-EU port). Non-EU ports are also those areas which do not share the EU toll union like Guernsey or the Canary Islands.

 

steamboats

[4774Papa]

If the cruise you are on only goes to EU countries, you pay the VAT the entire cruise. We were on one, Epic, Western Med that did the VAT for entire cruise. We did another from Barcelona, Jade that went to Morocco, Canary Island, Madeira and Malaga. No VAT, unless in port in Spain or in Spanish waters.

[bobndee]

On our recent trans-Atlantic we stopped in a Spanish port. The daily newsletter clearly spelled out that the VAT would be collected while we were in Spanish waters. Since we were there for one day only, it was easy to defer any purchases until after we left port.

[didicruiser]

I'll be on the Equinox in Septermber visiting Spain and Portugal but with a stop at Gibralter. Will any VAT be collected?

[steamboats]

I'll be on the Equinox in Septermber visiting Spain and Portugal but with a stop at Gibralter. Will any VAT be collected?

 

Yes, for Spanish ports (unless it´s the Canary Islands).

 

steamboats

[sparky-elpaso]

Thanks for the info. I was toying with the idea of getting the non-alcoholic drink package but wasn't sure if it would be worth it. With the extra 10% VAT added it might be although I think I'll wait until we're on board and use some of our OBC for it. It's our first time sailing Celebrity so I don't have any idea what drink prices are like.

[A Sixth?]

I am doing a British Isles cruise out of Amsterdam and it makes a stop at Guernsey for the sole reason that Guernsey is neither a separate Member State nor an Associate Member of the European Union.

 

Thus no VAT

 

Or at least I believe it's how it works. Did the same cruise with Princess a few years ago and wasn't charged any VAT

 

 

[wander]

Wow, that can really add-up!

 

U.S.A.- historically at least one state has a similar issue in that the ship has to charge state sales tax to any item or beverage purchased while in port in that state. This even applied to drink packages purchased while docked in the embarking port. When people wanted to purchase a drink package is was suggested that they wait until the ship sailed to make such a purchase. (I think that perhaps you had to wait until so far from land - but not sure about that.) Sorry I do not remember what state that was and this may no longer be true. (I do know it was not California, Washington, NY or Mass.)

[steamboats]

Florida does charge a State Tax onboard and I think when you sail out of NYC.

 

BTW the EU VAT is nothing new and it´s on for years now. The OP might not remember but he definitely had to pay the 10% on every drink (unless he had a package). You also have to pay the VAT on the packages (with RCI they charge it when you book online too).

 

steamboats

[zelker]

Well, THAT'S not good new for us. We're doing a B2B out of Barcelona this fall. First one is 10 night Western Med which is a roundtrip BCN that stops at all EU countries. Second one is a TA that leaves out of BCN with stops in Cartagena, Morocco, and two Canary Islands before we sail across to FLL. So how will this potentially effect us?

 

BTW, we've sailed out of Italy twice on roundtrip Eastern Med itineraries and I don't remember anything about the added VAT. So is it different if you embark in a country other than Spain or is my memory just not good?

[villauk]

Well, THAT'S not good new for us. We're doing a B2B out of Barcelona this fall. First one is 10 night Western Med which is a roundtrip BCN that stops at all EU countries. Second one is a TA that leaves out of BCN with stops in Cartagena, Morocco, and two Canary Islands before we sail across to FLL. So how will this potentially effect us?

 

BTW, we've sailed out of Italy twice on roundtrip Eastern Med itineraries and I don't remember anything about the added VAT. So is it different if you embark in a country other than Spain or is my memory just not good?

 

You possibly had a Turkish port on your itinerary from Rome?

[zelker]

You possibly had a Turkish port on your itinerary from Rome?

 

Yes, we had Turkish ports on both of those (one out of Rome and one out of Venice). So because of that, we wouldn't have had to pay any VAT?

[villauk]

I'll be on the Equinox in Septermber visiting Spain and Portugal but with a stop at Gibralter. Will any VAT be collected?

 

Yes, for Spanish ports (unless it´s the Canary Islands).

 

steamboats

 

Steamboats,

 

Are you quite sure about Gilbraltar, I was under the impression that it was one of the non VAT places? So if it's on your itinerary, you do not pay the extra - I may be wrong? I thought it was the same as Guernsey and the Canaries?

 

 

'Its membership is distinct to that of the UK as Gibraltar is excluded from 4 areas of EU policy: Customs Union, Common Commercial Policy, Common Agriculture Policy, Common Fisheries Policy and requirement to levy VAT.'

 

 

Correct, Zelker. Turkey is not in the EU ;).

Edited May 7, 2016 by villauk

[zelker]

Correct, Zelker. Turkey is not in the EU ;).

 

Yeah, I know that. I was asking if, because of that, would we not have had to pay VAT at any time during the cruise?

[LzyCruiser_NWA]

So am I correct that if your cruise visit nothing but EU countries, all services and cost on board will basically be 20% higher due to VAT?

[4774Papa]

Well, THAT'S not good new for us. We're doing a B2B out of Barcelona this fall. First one is 10 night Western Med which is a roundtrip BCN that stops at all EU countries. Second one is a TA that leaves out of BCN with stops in Cartagena, Morocco, and two Canary Islands before we sail across to FLL. So how will this potentially effect us?

 

BTW, we've sailed out of Italy twice on roundtrip Eastern Med itineraries and I don't remember anything about the added VAT. So is it different if you embark in a country other than Spain or is my memory just not good?

 

First cruise you pay VAT, Second cruise you don't. We did one of each in 2011 and 2012. The no VAT one went to Morocco, Canary Islands and Madiera which are not included in VAT,

[zelker]

So even things we pay for using OBC will get hit with the VAT - thus making our OBC worth less if that's the case?

 

And what about things that are an included Captain's Club or booking perk (e.g., internet, specialty dining, laundry, bev pkg, etc)? Do we have to pay VAT on those?

[LzyCruiser_NWA]

So am I correct that if your cruise visit nothing but EU countries, all services and cost on board will basically be 20% higher due to VAT?

[Desertbelle]

Having just been on the Reflection in April, stopping at several EU ports, I can tell you that, without a doubt, the VAT on products onboard the ship was only in Spanish waters/port. Yes, it was while we were in Spanish waters also....which meant when we were sailing from Malaga to Barcelona the VAT applied. The other ports in France and Italy did not add a VAT.

 

Also, be aware that you can get this money back, it only involves a little paper work. Here's one link about it, but there are others: https://www.ricksteves.com/travel-tips/money/vat-refunds

 

My suggestion would be to not purchase anything while in Spanish waters/port. A few cents on a can of soda or a drink might not be worth it to you to avoid, but it wouldn't be a good time to buy products such as watches, jewelry, purses, etc.

[steamboats]

Steamboats,

 

Are you quite sure about Gilbraltar, I was under the impression that it was one of the non VAT places? So if it's on your itinerary, you do not pay the extra - I may be wrong? I thought it was the same as Guernsey and the Canaries?

 

I didn´t say Gibraltar ;), I said for all Spanish ports except Canaries.

 

If the cruise has no non EU port you pay the VAT of the port the cruise started for the whole cruise.

 

If the cruise has a non EU port then you pay VAT only in Spanish ports and within the 3 miles zone.

 

Turkey is non EU member. Nor are any of the African countries. So if your cruise departs from Venice (or any other Italian port) and has a Turkish port (Istanbul, Izmir, Kusadasi) you don´t pay any extra VAT. It´s only Spain where you pay VAT as long as you are in Spanish waters.

 

Be aware that some cruise lines do interporting in the Med (like RCI, NCL, MSC, Costa). Here it´s the port which is "homeport" for this cruise - like the Harmony of the Seas homeport is Barcelona but you can also board in Civitavecchia. You pay the Spanish VAT although you´ve boarded in Italy for the whole cruise (no non EU port on the itinerary of the Harmony of the Seas).

 

steamboats

[Host Jazzbeau]

steamboats -- you still haven't answered the question whether stopping at Gibraltar qualifies as a non-EU-port for VAT. That was the crux of the original post you addressed.

 

I'm not an expert on this, but the research I did seems to show that Gibraltar is indeed a "get-out-of-tax-free" card. Travel Weekly says:

If the cruise visits a non-EU destination, such as

Gibraltar

or Tangier, the tax no longer applies.

http://www.travelweekly.com/Cruise-Travel/Insights/On-Europe-cruises-getting-acquainted-with-VAT

and the P&O website FAQ includes Gibraltar along with Saint Peter Port in its discussion of avoiding VAT:

If your cruise takes in another port (such as St Peter Port or Gibraltar) then duty free items will be available and UK VAT will not be applied.

https://ask.pocruises.com/help/fleet/VAT_ob

Edited May 7, 2016 by Host Jazzbeau