VAT onboard

[DevonianCruiser]

Last year we did a 4 day on Anthem from Southampton and VAT or some form of tax was added on all onboard purchases as it was just EU stops. This is what the shop staff and managers said.

 

I know if you cruise to the Canaries for example it means they don't have to charge it. Next year we stop in Gibraltar, does that null and void the tax so it's not charged?

[Clarea]

No VAT tax in Gibraltar.

[Lpppsp]

Vat will still be charged in shops onboard. We stopped at Gibraltar last year and only difference was that the shop selling alcohol and cigarettes was open which normally remains closed if all EU ports.

[DevonianCruiser]

Vat will still be charged in shops onboard. We stopped at Gibraltar last year and only difference was that the shop selling alcohol and cigarettes was open which normally remains closed if all EU ports.

 

Thanks that makes sense. Was hoping it would be like the canaries or Arica so whole cruise was vat free. Never mind :)

[cosytoes]

Vat will still be charged in shops onboard. We stopped at Gibraltar last year and only difference was that the shop selling alcohol and cigarettes was open which normally remains closed if all EU ports.

 

Is that correct? We sailed venice to venice and stopped in kotor (outside EU) and were told everything was tax and duty free if you call at a port outside the EU as you are classed as sailing outside eu waters.

 

i'm sure someone else will confirm.

[Pencruise]

I could be wrong but I feel sure that we have only ever been charged VAT when sailing out of Barcelona. We have just left the Harmony and it was 10% VAT I believe on drinks and speciality restaurants and 20 or 21% on items bought at the onboard shops. We were on the Vision earlier on this month sailing out of Venice and there was no VAT charged on anything.

[little britain]

Cruise from Spain charge Spanish VAT. If you stop at a non EU country like Gibraltar or the Canaries then no VAT is charged.

Presumably UK will count soon too [emoji3]

 

 

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[Lpppsp]

Oops maybe I am wrong, daughter usually buys a hoodie and I could have sworn they usually add 20% to the price ticket at the checkout. Oh well will be able to check in under 2 weeks :D

[IsanTom]

Incredible!

[abo]

Cruise from Spain charge Spanish VAT. If you stop at a non EU country like Gibraltar or the Canaries then no VAT is charged.

Presumably UK will count soon too [emoji3]

 

 

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I wouldn't for one second expect the UK to stop charging VAT post EU exit. It may even have the opposite effect for cruises originating from the UK, in that the standard EU VAT exemption of a stop in Gibraltar may no longer be sufficient to remove the requirement to charge UK VAT, as the cruise will still be in Britain at the time of that port stop, particularly if the cruise has not stopped at a non-British port beforehand. But this is just speculation - anything could be agreed at this stage.

[nelblu]

Is that correct? We sailed venice to venice and stopped in kotor (outside EU) and were told everything was tax and duty free if you call at a port outside the EU as you are classed as sailing outside eu waters.

 

i'm sure someone else will confirm.

 

When we sailed the Medit. some years ago, a stop was in Croatia which at that time was not part of the EU and no VAT charged. Also, my understanding if you are a non EU Pax and book pre-cruise, eg. alcohol, no VAT. We'll be sailing next August from Barcelona and a stop in Montenegro and assume no VAT.

[cosytoes]

Also, my understanding if you are a non EU Pax and book pre-cruise, eg. alcohol, no VAT. .

 

 

I'm not sure that applies don't you pay vat where the service is provided. If ship never leaves the eu then vat is due. If goes outside eu then I think that is treated like international waters.

 

What about shore excursions do they include vat depending on location and place paid for.

 

If non eu person buys things in Eu they can claim back vat on exit but only small gifts I think

[DevonianCruiser]

The reason I asked his question was because I was told that if you visit just one non eu country on your cruise that the cruise company didn't have to charge vat in the onboard shops. I thought it was when I was on a RC cruise out of Southampton last year but I've just remembered it was when I was on the Epic from Barcelona.

 

I'm sure that's correct but now I realise I've got the wrong embarkation port, don't know if it will be applicable from Southampton :confused:

[saphir]

I need an example! a $ 12 cocktail will cost how much with taxes. Which much taxes will be added (VAT, 18%, ???). ??? :confused:

[DevonianCruiser]

I need an example! a $ 12 cocktail will cost how much with taxes. Which much taxes will be added (VAT, 18%, ???). ??? :confused:

 

Onboard shops I asked about, not drinks. Watches, jewellery and the like. In the Caribbean on ships they are always tax free but not in Europe unless you visit a non eu port. It has nothing to do with drinks.

[abo]

Onboard shops I asked about, not drinks. Watches, jewellery and the like. In the Caribbean on ships they are always tax free but not in Europe unless you visit a non eu port. It has nothing to do with drinks.

 

If leaving from an EU port the following should apply:

 

If visiting a territory exempt from VAT (Gibraltar, Canaries, non-EU country, etc.) VAT should not be applied to the whole cruise (the ship normally manages this by closing certain facilities in ports where this general rule would not otherwise apply).

 

If not visiting a territory exempt from VAT then life is more complicated. Generally the port of departure sets over-riding rates. If leaving Spain the general rate is 21%, drinks are 10%, if leaving UK, the general rate is 20% but drinks and food are (usually) considered as incidentals to the travel component of the cruise, which is zero rated. However, certain countries also have rules for ships entering their territories where their rates can start to apply in certain circumstances (Italy is one such country).

 

This is a complicated area, so most people work to the generally accurate rule of thumb that Spanish rates will apply for cruises departing Barcelona and not visiting a non-EU country (the 7 day loops to Italy and back). Most other European and Med cruises visit a VAT exempt or non-EU country at some point in their itinerary so end up being free of VAT.

[nelblu]

I'm not sure that applies don't you pay vat where the service is provided. If ship never leaves the eu then vat is due. If goes outside eu then I think that is treated like international waters.

 

What about shore excursions do they include vat depending on location and place paid for.

 

If non eu person buys things in Eu they can claim back vat on exit but only small gifts I think

 

I asked that question on board for excursions and I was looked at as though I had 2 heads. Don't know if excursions are exempt or have the VAT included in the cost.

[abo]

I asked that question on board for excursions and I was looked at as though I had 2 heads. Don't know if excursions are exempt or have the VAT included in the cost.

 

As so often in these cases, the VAT applied depends...

 

VAT is a point of sale tax, so if a person buys a service outside the EU (a US citizen in the US over the US based RCI website for example) then no VAT is applied regardless of the cruise location, itinerary, etc as the point of sale is outside the EU. This is even if the service is provided inside the EU.

 

Within the EU excursions may attract VAT, but usually the large element of the excursion is for transportation (a coach or a boat) with anything else in the excursion considered incidental to the transportation. Most EU countries have a reduced rate on transportation (including Spain), or zero rate (UK included). So, if you buy an excursion onboard, and the itinerary does not include a VAT exempt port, and the cruise does not start from the UK, then VAT is most likely to be included on the excursion. If this is the case it should be included in the onboard advertised price of the excursion (this is an EU pricing regulation) so the price you see should still be the price you pay. You cannot reclaim VAT on excursions on leaving the EU as you are not exporting the service you purchased.

Edited June 30, 2016 by abo

[DevonianCruiser]

If leaving from an EU port the following should apply:

 

If visiting a territory exempt from VAT (Gibraltar, Canaries, non-EU country, etc.) VAT should not be applied to the whole cruise (the ship normally manages this by closing certain facilities in ports where this general rule would not otherwise apply).

 

If not visiting a territory exempt from VAT then life is more complicated. Generally the port of departure sets over-riding rates. If leaving Spain the general rate is 21%, drinks are 10%, if leaving UK, the general rate is 20% but drinks and food are (usually) considered as incidentals to the travel component of the cruise, which is zero rated. However, certain countries also have rules for ships entering their territories where their rates can start to apply in certain circumstances (Italy is one such country).

 

This is a complicated area, so most people work to the generally accurate rule of thumb that Spanish rates will apply for cruises departing Barcelona and not visiting a non-EU country (the 7 day loops to Italy and back). Most other European and Med cruises visit a VAT exempt or non-EU country at some point in their itinerary so end up being free of VAT.

 

Exactly the answer i was hoping for so thank you. That's what I was told on the ship but good to see it clarified separately :)

[delacruz]

Aha. So a friend recently did a cruise starting in Barcelona and ending in Venice and paid VAT for items on board. We did a round-trip from Barcelona, and everything was duty-free, so I assumed it was a difference between round-trip or not. But we stopped at Croatia, they didn't, so from what everyone's saying, that non-EU stop was the reason?

[croosieloosie]

Doing Barcelona round trip.

I am learning that VAT is crazy complicated.

So, if we purchase our specialty restaurants ahead of time, no VAT?

[abo]

Doing Barcelona round trip.

I am learning that VAT is crazy complicated.

So, if we purchase our specialty restaurants ahead of time, no VAT?

 

If you're non-EU based purchasing through a non-EU website that is (or at least should be!) correct.

[postmeome]

Last year we did a 4 day on Anthem from Southampton and VAT or some form of tax was added on all onboard purchases as it was just EU stops. This is what the shop staff and managers said.

 

I know if you cruise to the Canaries for example it means they don't have to charge it. Next year we stop in Gibraltar, does that null and void the tax so it's not charged?

 

If you are going from southampton ,and call at non eu country ie Gibralter or Canaries you will not pay vat on anything bought on board,even if you call at a eu country.enjoy your duty free cruise:)

[cosytoes]

If you are going from southampton ,and call at non eu country ie Gibralter or Canaries you will not pay vat on anything bought on board,even if you call at a eu country.enjoy your duty free cruise:)

 

 

I think I've got to grips with the vat outside the EU but the navigator and Indy both do cruises from Southampton back to Southampton with no EU stops as they only go to France and Spain so do they reprice all the goods in the shop and bars to add on vat or how does this work?

 

It brought back memories of the wh smith thing last year about duty free shops in the airports asking where you travelled to

 

http://www.dailymail.co.uk/news/article-3190002/Airport-VAT-rip-duty-free-sales-nets-millions-pounds-shops-including-Boots-Dixons-WHSmith.html

[little britain]

Yes, VAT will be added on to your till receipt. Labels on items will show the pre VAT price. Also likely that the duty free shop won't be open.

IIRC the drinks receipts show just one final total price, not broken down by drink cost, tip cost, VAT cost.

 

 

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