VAT onboard

[EJNutz]

The rules for VAT are if a ship sales from an EU country then VAT is due. If they sale from a non EU country VAT will not be due.

[postmeome]

Duty free shops on board will not be open for entire cruise,so no booze or cigs even at duty paid prices,they will sell single packs of cigs on indy for about $10 at the cafe.

Everything else 20% vat plus extra 7% Spanish Tax when your docked in Spain.

[postmeome]

Duty free shops on board will not be open for entire cruise,so no booze or cigs even at duty paid prices,they will sell single packs of cigs on indy for about $10 at the cafe.

Everything else 20% vat plus extra 7% Spanish Tax when your docked in Spain.

 

Sorry,was meant as reply to cozytoes:)

[robtulipe]

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.

 

Above is correct and not what is stated below.

That's the way the VAT has been applied on our many European cruises.

 

The rules for VAT are if a ship sales from an EU country then VAT is due. If they sale from a non EU country VAT will not be due.

[EJNutz]

VAT is calculated in the UK and EU based on the Tour Operators Margin Scheme (TOMS)

 

"the days on which the vessel leaves a non-EC port until it arrives in an EC port are regarded as outside the EC, and the days on which a vessel leaves an EC port until it reaches a non-EC port are regarded as inside the EC."

 

When travel is enjoyed within the EC/EU then it is standard rated (the rate of the country in which you commenced your trip). If it is enjoyed outside the EC/EU it is zero rated.

 

You can find the info in a HMRC public notice 709/5. The same rules in general apply through the whole of the EU.

[abo]

VAT is calculated in the UK and EU based on the Tour Operators Margin Scheme (TOMS)

 

"the days on which the vessel leaves a non-EC port until it arrives in an EC port are regarded as outside the EC, and the days on which a vessel leaves an EC port until it reaches a non-EC port are regarded as inside the EC."

 

When travel is enjoyed within the EC/EU then it is standard rated (the rate of the country in which you commenced your trip). If it is enjoyed outside the EC/EU it is zero rated.

 

You can find the info in a HMRC public notice 709/5. The same rules in general apply through the whole of the EU.

 

 

Probably not the right forum for a technical discussion on the accounting of VAT on a cruise, but the TOMS regulation relates to the treatment of tax for a supplier (e.g. travel agent) buying in and reselling travel services and the rule quoted is to allow the correct apportionment between EC and non-EC supply of a cruise bought in by a travel supplier . It has no bearing on the charging of VAT on goods and services sold during the cruise by the cruise line.

[DevonianCruiser]

I didn't mean to open a can of worms here. I was told that if one a cruise you visit a non eu country then vat isn't applied in the shops and it seems from the responses that the case. It was the shop manager on a cruise ship that told me. Since then I seem to recall a cruise out of Southampton years ago to the canaries and I'm sure that was vat free. Anyway thanks for all the responses :)