Cheers in Europe & VAT

[gailjen]

Just got off the Vista and wanted to give people the heads up about Cheers & VAT

 

I purchased a fully paid up Cheers and Bubbles in advance in July this didn't not stop the VAT.

 

We were advised by letter which was in with all the other stuff you get delivered and I missed it 😞 Carnival didn't just add 10% VAT to our package price they charged 10% on ever drink we consumed through the cheers & bubbles programs and 24% whilst in Greek waters, my kids were denied drinks as they didn't have any money on their card to pay the vat...so annoyed.

 

Please factor in what 10% will be on top of the amount of drinks you think you'll consume each day.

[les37b]

Did you ask them why they also didnt charge VAT on the food you have prepaid too, cos there certainly is no difference.

 

I wished I'd never heard of the name Carnival.

 

Not only were they asked this question when my cruise was booked last year, they put it in writing the suggestion youd made was nonsense.

 

This is a wind up right?

 

I expect there was a ship wide cancellation of gratuities if they did try to do this.

Edited August 20, 2016 by les37b

[PGBSAB]

Were you scheduled to go to Turkey during your cruise...if so were you notified before the cruise or during the cruise you were not going? It is my understanding that if your cruise stops in Turkey the VAT tax does not apply.

 

We sail October 1 and am wondering if Turkey is removed if they will notify us before we sail...people will be livid with this VAT tax when man booked with Turkey as a destination to save that tax.

[cclarke12]

Dispute it with Carnival or your credit card company if you used one to settle onboard account. They should only have charged you tax on the cost of the package. I have bubbles package now. I wasn't able to pre purchase and have just been charged 10% tax on package price. I don't see how they can legally charge you 10% tax on transactions in excess of the cost you have actually paid for the package- you haven't actually spent any more than that as transactions are zero because you paid up front. The Spanish tax authorities will want 10% tax on what you've actually paid, not what it would theoretically have cost you if you hadn't bought a package and were buying drinks individually.

[roxette]

Dispute it with Carnival or your credit card company if you used one to settle onboard account. They should only have charged you tax on the cost of the package. I have bubbles package now. I wasn't able to pre purchase and have just been charged 10% tax on package price. I don't see how they can legally charge you 10% tax on transactions in excess of the cost you have actually paid for the package- you haven't actually spent any more than that as transactions are zero because you paid up front. The Spanish tax authorities will want 10% tax on what you've actually paid, not what it would theoretically have cost you if you hadn't bought a package and were buying drinks individually.

 

I understand you're on board now. Hope you're having a great time and having some great weather.

 

Are you being charged the VAT for each individual soda as well?

 

I'm on the Vista on friday, and hoping everything is settled before that. I do not wish ro s0end any time with guest services...

[k10]

Also just got off Vista last week and confirm the following...

 

Vat was charged each time we redeemed a bottle of wine from our wine package - despite buying it in advance via the US. $2.75 was charged each time.

 

The worst of all was we even were charged VAT on the appreciation drink from Carnival. This was challenged with Carnival and they would not remove the charge!

 

When is a FREE DRINK really a free drink??? Outrageous and bordering on criminal

 

Overall this was a very minor (to us) annoyance to an otherwise great time onboard.

 

However it would definitely be deciding factor in choosing who to cruise with in future.

Edited August 21, 2016 by k10

[roxette]

Thank you, k10. Did they also charge VAT for the wine package, or "just" the bottles? Hooe they didn't double charge the VAT.

 

Interesting. Wonder how they are gonna do with the "champagne" auctions. And the Chefs Table. Now they must keep count on how much everyone is drinking, and charge them.

 

And the vifp party...

Edited August 21, 2016 by roxette

[roxette]

From the NCL board http://boards.cruisecritic.com/showthread.php?t=2260901

 

Interesting to me. No one ever pays VAT per drink while on a package there. How can Carnival see the law so differently?

[cclarke12]

I understand you're on board now. Hope you're having a great time and having some great weather.

 

Are you being charged the VAT for each individual soda as well?

 

I'm on the Vista on friday, and hoping everything is settled before that. I do not wish ro s0end any time with guest services...

 

No - every soda requested is zero charge listed on my account. 10% tax paid at point of purchase and no extras charged

 

It seems the issue appears to be for people who pre purchased. I tried to pre purchase but they stopped allowing this after 1 August. I can confirm other posts that have stated no issues encountered with bringing alcohol onboard. As you can imagine I'm now pleased I didn't buy a cheers package. I think the likes of Celebrity and NCL offering free packages with do very well with UK cruisers now. The poor exchange rate for UK cruisers coupled with Spanish taxes make for an expensive holiday.

Edited August 21, 2016 by cclarke12

[les37b]

So much for "fun ship"

 

Fraud ship more like.

 

What they are doing here if the OP is accurate is illegal and if they attempt to do this to me it will be disputed with my CC company.

 

Maybe Carnival can explain why they are not charging a "what it would have cost" VAT on food eaten or why they are selling cheers as a "flat fee charge".

[les37b]

Dispute it with Carnival or your credit card company if you used one to settle onboard account. They should only have charged you tax on the cost of the package. I have bubbles package now. I wasn't able to pre purchase and have just been charged 10% tax on package price. I don't see how they can legally charge you 10% tax on transactions in excess of the cost you have actually paid for the package- you haven't actually spent any more than that as transactions are zero because you paid up front. The Spanish tax authorities will want 10% tax on what you've actually paid, not what it would theoretically have cost you if you hadn't bought a package and were buying drinks individually.

 

Will they be refunding the US tax they have already placed on the purchase price of Cheers or have they forgotten they've already collected taxes for this item?

[Velvetwater]

We did the same cruise with Celebrity and they charged a 10% tax on all food and drinks too. A friend on Royal has also commented on the 10% tax on her cruise this summer as well. It is a negative when sailing out of certain EU ports. X did not tell us about it on board just as Carnival did not. There is also the 24% tax on general purchases.

 

 

 

I can't comment on the packages because we didn't buy them on either line.

 

Non EU citizens can claim back the 24% on goods as long as they are in the possession when leaving the EU. The 10% food/drink charge cannot be refunded apparently by a non EU country. Debating it on board may be your best bet.

[les37b]

We did the same cruise with Celebrity and they charged a 10% tax on all food and drinks too. A friend on Royal has also commented on the 10% tax on her cruise this summer as well. It is a negative when sailing out of certain EU ports. X did not tell us about it on board just as Carnival did not. There is also the 24% tax on general purchases.

 

 

 

I can't comment on the packages because we didn't buy them on either line.

 

Non EU citizens can claim back the 24% on goods as long as they are in the possession when leaving the EU. The 10% food/drink charge cannot be refunded apparently by a non EU country. Debating it on board may be your best bet.

 

Of course the issue here is the dishonesty going on. Before booking my Vista cruise I spoke with several guest services people so I could understand the costs. (If that makes me cheap, so be it.) I was aware of the basic costs, the port taxes and the rather large gratuities I was paying for my family. I factored that in. So I then enquired about drinks as I was aware this wasn't included. I was given some sample bar prices and also told about the 15% gratuity charge for someone opening a bottle of beer. I questioned any other unsuspecting charges and was told that was it. I learned about Cheers (at a time the exchange rate was $1.60 to the £ but decided it wasn't worth over $900 for 2 of us and would pay our own way.

 

Then just before vista launched carnival decide to spring this surprise 10% and 21% tax on us. New EU directive maybe? Nope, just a bit of dishonesty.

 

So I rang and asked about cheers (which was now more expensive due to the drop in the £ but decided after being informed once paid that was it nothing more to pay. Great. I swallowed the hype and decided I'd swallow more booze than intended since it's a flat fee I'd paid in advance.

 

Once Vista was launched someone posted they had been told they would have a "what it would have cost" tax levied. I did a Google search for carnivals new tax but failed to find it. I rang again and once again was told relax I've paid upfront no further charges.

 

Realising that carnival have been let's say mistaken on their prices previously, I put my question in writing and got my response once again which confirmed all taxes were already included in the price I was paying and no further taxes could be applied.

 

If carnival try to charge me a further 10% on what I've paid or 10% extra on anything I've consumed on this all inclusive deal, then it will be disputed with my CC company.

 

I dislike the penny pinching ways of Carnival that I've learned about, but this seemingly regular dishonesty is a joke.

 

Thank heavens Silversea are reputable and this sort of thing doesn't exist.

 

My next cruise on 6* Silver wind in the Caribbean for 10 nights taking into account flights (not cheap from the UK) is actually costing me less once all the tips and drinks and VAT is added up for holidaying on a Butlins ship.

 

If I'd wanted a Mickey Mouse cruise line I would have booked Disney.

[Velvetwater]

 

Then just before vista launched carnival decide to spring this surprise 10% and 21% tax on us. New EU directive maybe? Nope, just a bit of dishonesty.

 

So I rang and asked about cheers (which was now more expensive due to the drop in the £ but decided after being informed once paid that was it nothing more to pay. Great. I swallowed the hype and decided I'd swallow more booze than intended since it's a flat fee I'd paid in advance.

 

Once Vista was launched someone posted they had been told they would have a "what it would have cost" tax levied. I did a Google search for carnivals new tax but failed to find it. I rang again and once again was told relax I've paid upfront no further charges.

 

 

I completely understand the cheers package frustration and think people should have kicked up more of a fuss.

 

But what I am trying to say is Carnival have not been the only cruise line in the last 3 years to spring the Spanish tax on their customers once on board. Celebrity told us nothing last year until we got an email 2 days before the start date. Royal Carribean also did something similar to a friends sailing from Barcelona previously. I believe P and O also do this.

 

Also, Carnival reps have a general info card when you ring up and often do not know about special requirements as they are so used to US based sailings and customers. When we did our Baltic cruise 1 of the phone reps I spoke to didn't even know cruisers needed a Visa to go ashore in Russia.

 

Thankfully we were aware of the Spanish tax before both our Med cruises. Cruise lines probably assume that those that care research and those that don't will just pay up. Not completely fair but seems to be a business wide thing and not just Carnival.

 

TBH we should actually be peeved at many cruise lines because the Spanish IVA tax as it is known should be swallowed by cruise lines and there is also debate that it should only be charged in Spanish waters therefore it should have stopped early in the cruise. There should also be a notification when you book the cruise about it.

[les37b]

I completely understand the cheers package frustration and think people should have kicked up more of a fuss.

 

But what I am trying to say is Carnival have not been the only cruise line in the last 3 years to spring the Spanish tax on their customers once on board. Celebrity told us nothing last year until we got an email 2 days before the start date. Royal Carribean also did something similar to a friends sailing from Barcelona previously. I believe P and O also do this.

 

Also, Carnival reps have a general info card when you ring up and often do not know about special requirements as they are so used to US based sailings and customers. When we did our Baltic cruise 1 of the phone reps I spoke to didn't even know cruisers needed a Visa to go ashore in Russia.

 

Thankfully we were aware of the Spanish tax before both our Med cruises. Cruise lines probably assume that those that care research and those that don't will just pay up. Not completely fair but seems to be a business wide thing and not just Carnival.

 

TBH we should actually be peeved at many cruise lines because the Spanish IVA tax as it is known should be swallowed by cruise lines and there is also debate that it should only be charged in Spanish waters therefore it should have stopped early in the cruise. There should also be a notification when you book the cruise about it.

 

I can't comment about other lines apart from Silversea and we certainly didn't pay any extra for drinks or speciality meals. Goods were subject to 21% however and I have to admit I was told before purchasing though we were told we could claim VAT back whilst purchasing which of course was inaccurate. We were however told. No nasty surprises when settling the bill.

 

If you already knew then you've made your informed choice and that's fair enough. I completely get it that it's not Carnival wanting more cash. But I did ask and made a decision to firstly book the cruise then cheers because on information given.

 

That's not a way to run a business whoever it is behind the helm.

Edited August 21, 2016 by les37b

[daddyfixit]

I also paid in advance for an alcohol package and 3 x soft drink packages using my credit card;

 

every single soft drink had 15c applied to it, so after a few days my kids were REFUSED drinks by waiters after they had queued up !! this proved really embarrassing to my 16 year old daughter that she point-blank refused to ask for drinks after she has been made to look stupid in front of new friends she had made on board.

I went to the customer services desk, it was a constant stream of people shouting about the vat and actually cancelling drinks packages (all in full view of waiting customers I may add). When I got to speak to the adviser I pointed out that it was a pre-paid purchase, and as such was a contract----a contract is a mutual agreement that (by law) has a cooling off period, so we should have been given advance prior warning of a change to the contract and at that time could have cancelled !!! being told about the change while you are on board is NOT a fair warning and as such I wonder if it is even legal ??

I had to transfer money into my kids on-board accounts so that they could get drinks on board !!! my 13 year old son even carried money in his pocket as he was worried that he would be embarrassed like his sister was----IS THIS THE FUN THAT CARNIVAL HAD PROMISED MY KIDS ???

I am taking it up with visa as I paid weeks ago and I hope that VISA AGREE WITH THE CIRCUMSTANCES AND WITHDRAW THE FEES TO CARNIVAL. Its our first ever cruise with carnival and has left me with a poor opinion of there operating procedures and even their legal morals. We cruised with Princess last year, (owned by carnival corporation as well) paid up front in advance for drinks packages but we didn't suffer the same shameful episodes that HUNDREDS of people have just had on this cruise.

SO HAS CARNIVAL VISTA UN-EARTHED A HIDDEN, MAGICAL TAX CHARGE THAT DIDNT EXIST LAST YEAR .....THE SAME PORTS AS WE VISITED LAST YEAR ON EMERALD PRINCESS AS WELL ????

[les37b]

I also paid in advance for an alcohol package and 3 x soft drink packages using my credit card;

 

every single soft drink had 15c applied to it, so after a few days my kids were REFUSED drinks by waiters after they had queued up !! this proved really embarrassing to my 16 year old daughter that she point-blank refused to ask for drinks after she has been made to look stupid in front of new friends she had made on board.

I went to the customer services desk, it was a constant stream of people shouting about the vat and actually cancelling drinks packages (all in full view of waiting customers I may add). When I got to speak to the adviser I pointed out that it was a pre-paid purchase, and as such was a contract----a contract is a mutual agreement that (by law) has a cooling off period, so we should have been given advance prior warning of a change to the contract and at that time could have cancelled !!! being told about the change while you are on board is NOT a fair warning and as such I wonder if it is even legal ??

I had to transfer money into my kids on-board accounts so that they could get drinks on board !!! my 13 year old son even carried money in his pocket as he was worried that he would be embarrassed like his sister was----IS THIS THE FUN THAT CARNIVAL HAD PROMISED MY KIDS ???

I am taking it up with visa as I paid weeks ago and I hope that VISA AGREE WITH THE CIRCUMSTANCES AND WITHDRAW THE FEES TO CARNIVAL. Its our first ever cruise with carnival and has left me with a poor opinion of there operating procedures and even their legal morals. We cruised with Princess last year, (owned by carnival corporation as well) paid up front in advance for drinks packages but we didn't suffer the same shameful episodes that HUNDREDS of people have just had on this cruise.

SO HAS CARNIVAL VISTA UN-EARTHED A HIDDEN, MAGICAL TAX CHARGE THAT DIDNT EXIST LAST YEAR .....THE SAME PORTS AS WE VISITED LAST YEAR ON EMERALD PRINCESS AS WELL ????

 

Yes it's called the "Carnivsls what it would have been" tax. It's a newly invented tax that only applies to Carnival Cruise ships! :p

 

Do get in touch with visa as you've said and dispute the charges. I'm sure Carnival will be able to explain to them about this new tax that's been invented.

 

I've got something in writing from them that tells you anyone buying cheers pre cruise will not be subjected to any surcharge including VAT (it literally says that) as you have already paid taxes up front. That's Carnivals problem that their tax is included in the $58 per day each charge not mine.

 

One thing I will say, this will hit the cruise industry in Europe badly. Out of principle (apart from AI lines like Silversea) I would not book another EU only cruise whilst this nonsense is going on.

 

If you'd like the email received to support this breach of contract, I'm happy to help.

 

BTW you mention you were charged $0.15 per drink. Was that just sodas or were alcolohic drinks charged the same amount?

[roxette]

I also paid in advance for an alcohol package and 3 x soft drink packages using my credit card;

 

every single soft drink had 15c applied to it

 

I'm guessing 10% were added to each adult drink, as well?

 

This will be a really expensive drink package to me.

 

What a fiasco, Carnival.

[cclarke12]

The 10% tax had been around for years on sailings from Spain. I can remember this being included 7 years + ago on Royal Caribbean. It's nothing new. So the issue seems to have been how Carnival have dealt with pre-purchased packages where they have clearly realised the package should actually be subject to VAT. What they should have done was give the option of cancelling, or paying 10% tax on the package price. It'd be interesting to know what they are actually paying to the Spanish tax authorities. It's a shabby way to treat customers.

 

For the package purchased onboard we are definitely not having this issues. I suspect NCL get around this because they have so many free drinks package offers for UK clients. If the drinks are included as part of the holiday price presumably there's nothing to add VAT on to.

 

For what it's worth, I don't think Carnival have deliberately duped people. I think it's a screw up on their part. But they've clearly made it worse in the way they've handled it.

Edited August 21, 2016 by cclarke12

[roxette]

The 10% tax had been around for years on sailings from Spain. I can remember this being included 7 years + ago on Royal Caribbean. It's nothing new. So the issue seems to have been how Carnival have dealt with pre-purchased packages where they have clearly realised the package should actually be subject to VAT. What they should have done was give the option of cancelling, or paying 10% tax on the package price. It'd be interesting to know what they are actually paying to the Spanish tax authorities. It's a shabby way to treat customers.

 

For the package purchased onboard we are definitely not having this issues. I suspect NCL get around this because they have so many free drinks package offers for UK clients. If the drinks are included as part of the holiday price presumably there's nothing to add VAT on to.

 

For what it's worth, I don't think Carnival have deliberately duped people. I think it's a screw up on their part. But they've clearly made it worse in the way they've handled it.

 

Yes, I agree. I have pre purchased (it saved me $5/day!), I don't mind at all to pay the 10% extra for the package once onboard. But, I really would mind to pay 10% extra per drink.

 

The value of the package, and my drinks, are $49:95/day. Regardless if I have just one coke, or 15 glasses of champagne. The problem is, the VAT for 15 glasses of champagne is 30$.

Edited August 21, 2016 by roxette

[cclarke12]

Yes, I agree. I have pre purchased (it saved me $5/day!), I don't mind at all to pay the 10% extra for the package once onboard. But, I really would mind to pay 10% extra per drink.

 

They are now selling onboard for the pre purchase price of $49.95 so if you think this might be an issue I would cancel in advance and buy when onboard so you only pay 10% tax on the package, not per drink.

[les37b]

The 10% tax had been around for years on sailings from Spain. I can remember this being included 7 years + ago on Royal Caribbean. It's nothing new. So the issue seems to have been how Carnival have dealt with pre-purchased packages where they have clearly realised the package should actually be subject to VAT. What they should have done was give the option of cancelling, or paying 10% tax on the package price. It'd be interesting to know what they are actually paying to the Spanish tax authorities. It's a shabby way to treat customers.

 

For the package purchased onboard we are definitely not having this issues. I suspect NCL get around this because they have so many free drinks package offers for UK clients. If the drinks are included as part of the holiday price presumably there's nothing to add VAT on to.

 

For what it's worth, I don't think Carnival have deliberately duped people. I think it's a screw up on their part. But they've clearly made it worse in the way they've handled it.

 

There is a third option which they should be adopting. Their mistake, they pay the $5 per day tax and not make up an imaginary "what you would have paid" tax. Like I've been saying, they have put in writing that prepaying cheers on my cruise means I will not be paying any further charges including VAT on drinks obtained through this purchase.

 

I'm so pleased I used my credit card to purchase and have paid an insurance premium to assist with contractual disputes.

 

I don't think expecting them to honour something contractually they've agreed to do and certainly what they seem to be doing I would suggest is actually illegal.

 

I am happy to pay 10% on a drink I'm being charged $0.00 for exactly like I'm prepared to do the same with food I've prepaid for too. There is zero difference.

[k10]

Thank you, k10. Did they also charge VAT for the wine package, or "just" the bottles? Hooe they didn't double charge the VAT.

 

Interesting. Wonder how they are gonna do with the "champagne" auctions. And the Chefs Table. Now they must keep count on how much everyone is drinking, and charge them.

 

And the vifp party...

 

Hi Roxette

 

No VAT was charged on the package when purchased over the phone via US. The lack of communication by Carnival over this is shocking. If you had purchased the cheers package then you could be looking at a significant VAT bill at the end of the cruise!

[TheDTeam]

I was a bit miffed about this too. I bought the Bottomless Bubbles packages for the kids whilst on board, and was told that they could drink as much soda / juice as they wanted for the one off all inclusive price. Nobody mentioned the tax that would be levied for each drink :(. To be honest, if they had have done then I'd have bought the drinks packages anyway, but it's the fact that nobody told me in advance which annoyed me.

[LaCal]

Wow so even my so called Free Drinks in the casino will be charged the 10% Vat tax

 

Glad we're bringing on bottles of vodka and whiskey and my 30oz tumbler cause I'll be making lots of my own strong drinks myself as well. I won't charge myself extra 😂😂😂