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

[les37b]

Montenegro did ensure you wouldn't pay the VAT ;).

 

Indeed.

 

I wonder if you were to ring the sales teams you would get the (accurate) response you've given. I get the impression they dont actually understand or appreciate the answer they give dictate if you make a booking or not. Afterall, purchases are usually - especially if its not a cheap item - based on informed decisions.

 

Would you buy a car, having been told it was $20,000 and then when you go to collect they say, sorry, we forget to tell you, were adding an extra $5K for the driver who brought it here and also a further, $5K for tax we forgot to mention. Please pay the extra $10K now please. Its not really much different IMHO.

[vivi9909]

We will be sailing on the Equinox Oct 15 cruise from Barcelona to Barcelona with all Ports of Call in EU. Based on this discussion and some others, my understanding is that we will be charged 21% VAT (or 22?) for all our purchases on-board, including drinks, Internet package and specialty restaurants but not sure about the Shore Excursions.

 

Taking into account that a Classic Beverage Package is included as a perk in the price of our cruise, it is also my understanding that we will not be taxed for that. However, if we want to upgrade from the Classic to the Premium Beverage Package, will it make a difference if we purchase it before the cruise on the Celebrity Web site as compared to purchasing it on-board, during embarkation or while at sea?

 

I know that some people might have different opinions about that question, but I would like to have answers from people who experienced recently one of the two possibilities on a cruise with all Port of Calls in EU.

 

Thank you.

[cruisestitch]

One thing you might try is to upgrade prior to the cruise on line. See if there is any tax added.

[les37b]

We will be sailing on the Equinox Oct 15 cruise from Barcelona to Barcelona with all Ports of Call in EU. Based on this discussion and some others, my understanding is that we will be charged 21% VAT (or 22?) for all our purchases on-board, including drinks, Internet package and specialty restaurants but not sure about the Shore Excursions.

 

Taking into account that a Classic Beverage Package is included as a perk in the price of our cruise, it is also my understanding that we will not be taxed for that. However, if we want to upgrade from the Classic to the Premium Beverage Package, will it make a difference if we purchase it before the cruise on the Celebrity Web site as compared to purchasing it on-board, during embarkation or while at sea?

 

I know that some people might have different opinions about that question, but I would like to have answers from people who experienced recently one of the two possibilities on a cruise with all Port of Calls in EU.

 

Thank you.

 

if you pay for a drinks package prior to sailing, you will not be charged any VAT. You would only pay Spanish VAT on things you physically need to pay for once you are on the ship.

 

The tax you would pay is 10% on food and drinks bought from bars and restaurants, but 21% on everything else.

 

To make things more understandable...... it you have a drinks package.... if the ship puts it through and shows on your bill, it will cost you $0.00 and adding tax on a $0.00 purchase is easy to work out!

 

By rights, tours should attract a 21% tax, however, tax has no doubt already been charged and included in the price offered as its something thats outsourced.

 

ive recently returned from an EU only cruise, which was different in that it was an AI trip. No vat added to food or drink.... interestingly not even in the speciality restaurant (which i think should have been chargeable).... The trip we booked onboard was NOT subject to any additional tax, though we were charged 21% on a necklace.

 

In August we are on Carnival Vista and have prepaid for their drink package. some of their sales staff are clueless on this subject and have even suggested to some enquirers, they will have their consumption value added up and a charge of 10% levied. I have now obtained in writing from them, there is no VAT charged on their "cheers" package bought prior to sailing or anything obtained using it. Anyone buying onboard will have to pay the daily rate plus VAT.

 

This should be applicable on all sailings.

 

hopefully a celebrity cruiser can confirm this for you shortly.

[Tom Baker]

les37b, get a receipt every time you purchase a drink (even if you are AI) If it doesn't show Spanish IVA (VAT) with the percentage charged and the amount clearly stated (in euros) then Carnival cannot charge you the tax at a later date as this breaches EU law. Each transaction must clearly identify the IVA charged.

[les37b]

les37b, get a receipt every time you purchase a drink (even if you are AI) If it doesn't show Spanish IVA (VAT) with the percentage charged and the amount clearly stated (in euros) then Carnival cannot charge you the tax at a later date as this breaches EU law. Each transaction must clearly identify the IVA charged.

 

I agree.

 

You cant apply tax to an item which has a value of $0.00 .... and if you have prepaid for a drink package that will be the charge.

[cruise kitty]

Hi, I did the equinox out of Barcelona, with no non-EU stops in May.

 

Here's the facts:

 

-they won't be selling duty free liquor as the can't guarantee the "low price"

-you're not charged the extra tax on spa services... only on actual goods purchased (DH & I both bought several massages & discussed this with staff, if we'd bought spa products, we would have been charged the tax) food & drink purchased onboard had an added tax of about 10%, so we did not partake in specialty restaurants for the first time...

 

As far as the shops, I've never seen them so empty...

 

We upgraded our be pkg. several months ahead of time, & were not charged the additional tax.

 

I noticed that the shops really were carrying what appeared to be older, cheap, outdated clothing, souvenirs.... for example, one shop advertising the "Newport News" line of clothing, which is about on par with clothing from Wal Mart... I don't know if this is a new thing with Celebrity, or just on the trips with the VAT tax. :confused:

 

 

*I can't help with shore excursions, as we don't do ship excursions, but if you pre pay, you shouldn't get charged.

Edited July 4, 2016 by cruise kitty

[insidecabin]

The UK opted out of the full EU regulation so VAT only applies fully on UK only cruises.

Most include StPeterPort anyway.

[les37b]

The UK opted out of the full EU regulation so VAT only applies fully on UK only cruises.

Most include StPeterPort anyway.

 

You do realise the Uk is still in the EU and all rules and tax regulations apply until it has officially left which won't be for another 2 years minimum!

[les37b]

Unfortunately no, if you buy the package online prior to the cruise you pay the VAT. At least that´s the case with RCI´s Harmony of the Seas cruises out of Barcelona. And it doesn´t matter where you are living.

 

Actually I bought a restaurant package (80USD). As my CruisePlanner showed a bit more than 80 Euro I´ve asked fellow guests from the US what their CruisePlanner is showing and it was 88 USD (which converted fitted my 80 Euro).

 

All beverage packages have 18% Service Charge plus 10% VAT added online. Internet packages have 21% VAT added online.

 

So regarding the Spanish VAT it doesn´t matter whether you book online or onboard.

 

steamboats

 

This should not be happening..... And it certainly doesn't apply on Carnival.

 

Are they also charging you VAT on food from the MDR that you prepaid in your booking?

[insidecabin]

You do realise the Uk is still in the EU and all rules and tax regulations apply until it has officially left which won't be for another 2 years minimum!

 

The UK opted out of parts of this particular directive nothing to do with BREXIT.

Edited July 4, 2016 by insidecabin

[les37b]

The UK opted out of parts of this particular directive nothing to do with BREXIT.

 

What is this directive?

[Ex-Airbalancer]

And if you Canadian you have add in another 30% in exchange rate

I drinking tap water :D

[DYKWIA]

The UK opted out of the full EU regulation so VAT only applies fully on UK only cruises.

Most include StPeterPort anyway.

 

But we can't get duty free on the cross channel ferries and on flights to Europe? VAT is applied.

[Tom Baker]

And if you Canadian you have add in another 30% in exchange rate

I drinking tap water :D

 

Come live in the UK and have a good moan about the exchange rate the $ gone from $1.50 to $1.26 in the last 10 days :eek:

[Ex-Airbalancer]

Come live in the UK and have a good moan about the exchange rate the $ gone from $1.50 to $1.26 in the last 10 days :eek:

 

But the UK did it to themselves, and had everyone run to the USD which dropped our dollar again 😕

[Aussie One]

We were on the same Eqinox cruise as the first post Rome to Barcelona if you had the drink package there were no extra charges for soft drinks or alcoholic drinks the shop selling liquor was closed for the whole cruise the VAT was charged in the shops not sure about other services as I said we were on this cruise Aussie

[insidecabin]

What is this directive?

 

Article 37 Principal VAT Directive

[insidecabin]

But we can't get duty free on the cross channel ferries and on flights to Europe? VAT is applied.

 

Goods sold for consumption are VAT free(on trains as well as ships and planes).

 

Also for international trips there should be no VAT in port either for goods consumed on board(unlike Spain which does charge).

 

Any ship leaving UK only charges VAT if the ship only visits UK ports any other EU or international port is enough to stop VAT on consumption.

[insidecabin]

Found the VAT manual(could not find it earlier).

(maybe other EU countries have adopted the UK approach, maybe a good reason it is known as the Spanish tax.)

 

https://www.gov.uk/hmrc-internal-manuals/vat-place-of-supply-goods

https://www.gov.uk/hmrc-internal-manuals/vat-place-of-supply-goods/vatposg4140

 

Supplies on board ships, aircraft and trains: Intra-Community journeys: On-board consumption

We treat supplies of goods for on-board consumption as taking place outside the Member States and so outside the scope of VAT. This is due to the UK having exercised the option in Article 37(3) of the Principal VAT Directive (see VATPOSG4110) which permits Member States to relieve supplies of this kind from VAT.

 

When sold from an on-board bar or restaurant, all sales of food, drink and tobacco are treated as being for immediate consumption (although, as smoking is not permitted on board aircraft or trains, no sales of tobacco products qualify as being for consumption on board). Confectionery and soft drinks sold anywhere on board a ship, aircraft or train are treated as goods consumed on board and relieved of VAT; as long as it is self-evident that the products are of a type that are more suitable for on-board consumption than gift purchase or home use. Products that by virtue of their nature of packaging are clearly not suitable to be treated as consumed on board (such as boxes of chocolates or tins of biscuits) are subject to VAT in the normal way, even if these products are actually consumed on board the ship, aircraft or train.

 

https://www.gov.uk/hmrc-internal-manuals/vat-place-of-supply-goods/vatposg4200

Supplies on board ships, aircraft and trains: international journeys

All supplies of goods during an international journey (that is a journey to and from athird country) are treated as taking place outside the UK and so are outside the scope ofUK VAT. This includes goods which technically could be regards as having been suppliedwithin UK territorial limits at the start of a journey departing from the UK or at the endof a journey to the UK

[DaisyRose]

Paying an additional 10-21% seems very undesirable to many, myself included. Many people who are aware of it avoid purchases (reducing a cruise lines sales and profits), and people who are not aware of it are upset when they find this extra charge on their purchases. To me, it would make sense for cruise lines to make sure they include a non EU port in their itineraries. I am so glad I read this thread. I will avoid cruises that will charge a VAT for all or most of the trip. An extra 21% can really add a lot to the cost of a trip.

[DYKWIA]

Paying an additional 10-21% seems very undesirable to many, myself included. Many people who are aware of it avoid purchases (reducing a cruise lines sales and profits), and people who are not aware of it are upset when they find this extra charge on their purchases. To me, it would make sense for cruise lines to make sure they include a non EU port in their itineraries. I am so glad I read this thread. I will avoid cruises that will charge a VAT for all or most of the trip. An extra 21% can really add a lot to the cost of a trip.

 

If turkey disappears from the med itineraries next year it might become a lot more common. Not all med cruises will get Gibralter or Montenegro added.

[insidecabin]

Paying an additional 10-21% seems very undesirable to many, myself included. Many people who are aware of it avoid purchases (reducing a cruise lines sales and profits), and people who are not aware of it are upset when they find this extra charge on their purchases. To me, it would make sense for cruise lines to make sure they include a non EU port in their itineraries. I am so glad I read this thread. I will avoid cruises that will charge a VAT for all or most of the trip. An extra 21% can really add a lot to the cost of a trip.

 

Have a look at the map and find somewhere for the ships to go.

https://www.google.co.uk/maps/@35.9953597,21.6840473,5z

 

The med is running out of places to go that are non EU that ships can go to.

 

For the western Med city circle BCN<->Rome they have Gib but that is too far for the shorter itineraries or Tunisia(few want to go now) or Libya(even fewer want to go).

 

Eastern Med they can include Turkey but that is going to cause booking issues as Americans are getting scared.

 

There is Israel and Egypt both just cause itinerary issues in the past(having to cancel ports).

 

Easier for the cruise lines to just publish what look like safe itineraries and let the PAX pay.

 

pre purchase packages would solve the problem, the cruise lines could add low use packages, eg a 10/15/20 drinks bundle for those that can't get value out of the full beverage packages.

 

cruise lines like Celebrity and RCI already have a system in place to do this as they have the diamond drinks vouchers on the cruise cards should not take much to add packages.

Edited July 8, 2016 by insidecabin

[les37b]

Paying an additional 10-21% seems very undesirable to many, myself included. Many people who are aware of it avoid purchases (reducing a cruise lines sales and profits), and people who are not aware of it are upset when they find this extra charge on their purchases. To me, it would make sense for cruise lines to make sure they include a non EU port in their itineraries. I am so glad I read this thread. I will avoid cruises that will charge a VAT for all or most of the trip. An extra 21% can really add a lot to the cost of a trip.

 

I actually asked when I booked last year about any additional charges on prices and was told other than gratuities on drinks purchases, there would be none. I would have booked something else if they had been more honest with the truth! (And I guess that is why they are not so keen to hand out the facts!)

 

Have a look at the map and find somewhere for the ships to go.

https://www.google.co.uk/maps/@35.9953597,21.6840473,5z

 

The med is running out of places to go that are non EU that ships can go to.

 

For the western Med city circle BCN<->Rome they have Gib but that is too far for the shorter itineraries or Tunisia(few want to go now) or Libya(even fewer want to go).

 

Eastern Med they can include Turkey but that is going to cause booking issues as Americans are getting scared.

 

There is Israel and Egypt both just cause itinerary issues in the past(having to cancel ports).

 

Easier for the cruise lines to just publish what look like safe itineraries and let the PAX pay.

 

pre purchase packages would solve the problem, the cruise lines could add low use packages, eg a 10/15/20 drinks bundle for those that can't get value out of the full beverage packages.

 

cruise lines like Celebrity and RCI already have a system in place to do this as they have the diamond drinks vouchers on the cruise cards should not take much to add packages.

 

Yes, pre-paying is the way - until the EU dictatorship think of a way to to add some get out clause.

 

But on the bright side, you will be able to add the UK to that list soon! :p

 

Good idea on the drinks number packages. I hadnt bought cheers and wasnt going to until the tax bombshell was dropped. I know intend on getting full value having done so. (hic)

Edited July 8, 2016 by les37b

[insidecabin]

Yes, pre-paying is the way - until the EU dictatorship think of a way to to add some get out clause.

 

That could cause a problem for loads of service/travel industries not just cruises.

 

For the UK(and maybe other EU not going to check just now)

Taxation of travel and holidays is something few understand.

 

Currently travel and holidays are VAT free, there is a complicated scheme called the "Tour Operators Margin Scheme" and loads of rules around holidays and what is provided (included/optional) that determine the VAT status.

 

eg a coach trip to a football ground is VAT free, if it include the match ticket it is standard rate.

 

(that is one of the easier ones to understand)