Cheers in Europe & VAT

[les37b]

Lollingtons

 

How embarrassing. "inadvertently" now means ****ed up.

 

I wonder if they will now also refund the overcharging of taxes and do something to make up for what they've caused people to overspend / have a less enjoyable cruise because Carnival has no idea about EU tax laws.

 

Still, a step in the right direction. And I trust they won't be charging VAT on pre-bought cheers since ITS NOT PURCHASED ON BOARD.

 

Highlighted in caps to assist once again. :D

Edited September 12, 2016 by les37b

[LIMPIT]

No mention of the 24%, wonder if the 10% is applicable to only drink packages pre purchased or also to pay as you go customers when in Greece ??? [emoji848][emoji848][emoji848]

 

 

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[Cully1953]

I won't be buying Cheers anyway. I only drink beer (maybe 4/5 a day) and my wife will probably only have a couple of glasses of wine all cruise, so it's not worth it to me to shell out $880 for the both of us on an 8 day cruise (that's including the 10% VAT) I will probably bring back an odd 4 pack of local beer from a couple of ports to have in my cabin.

[PatyCake]

Yes people got the email but when they tried to purchase again they were told NO MORE IN EUROPE! They do not have any idea what the heck they are doing!

[Karnyval]

Yes people got the email but when they tried to purchase again they were told NO MORE IN EUROPE! They do not have any idea what the heck they are doing!

 

It shows up for our Transatlantic again.

[Harry3534]

Here is an email I sent to Carnival UK this morning, I wait with bated breath.

 

Good morning, my name is *********. We recently cruised with you on the Vista which sailed out of Barcelona 26th August for eight days. Our cabin was 9202.

 

Unfortunately we did not know that you were charging 21% spanish VAT on all food and drink purchases on board. I did query this quite robustly with guest services as I thought the 21% figure was quite wrong and way to high as it should be in the region of 10%. Guest services stuck to the party line and insisted it was correct.

 

I have kept in contact with other people who sailed and there is an open thread on this on cruise critic. It seems you have had a change of heart and are now saying the VAT rate is 10% on further sailings in the EU. Here is an email you sent to a guest who is departing from Barcelona shortly

Greetings folks,

We know you must be excited about your upcoming Mediterranean cruise aboard the beautiful Carnival Vista.

We are sorry to inform you that your pre-purchase order of Bottomless Bubbles and/or CHEERS! beverage package was inadvertently cancelled. A full refund was posted to your original form of payment. We invite you to revisit www.carnival.com to repurchase.

While we have you, please be aware since your cruise departs from Spain (a member of the European Union) and calls only on countries within the European Union, we are required by law to charge a Value Added Tax (VAT). Food and drink purchases at bars and restaurants will be subject to a 10% VAT during your cruise. The tax on Bottomless Bubbles and CHEERS! beverage package for this cruise will be charged at the package price (not per drink).

We sincerely apologize for any inconvenience this may cause and thank you for your understanding. Most importantly, we are looking forward to welcoming you aboard for a fun and memorable cruise.

As my onboard spend was $988 I look forward to a refund on the 11% VAT overcharge on my drinks purchases as we were subject to 21% and not the correct 10%. You clearly made a mistake and I am glad you have aknowledged the fact there was "confusion" regarding your interpretation of EU law.

 

I look forward to hearing your views on the matter.

 

Yours sincerely ********.

I will keep you posted as they have admitted in writing now we were all overcharged by 11%. How did this happen? what a shambles of a company.

[LIMPIT]

Posted by fellow cruiser, good news if true [emoji848]

 

Here's something I've just discovered: if you bought the Cheers or Bubbles package from within an EU country you are exempt from the VAT at any rate. I live in France, I paid for the package with a UK credit card, both countries are within the EU :-)

 

 

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[les37b]

Posted by fellow cruiser, good news if true [emoji848]

 

Here's something I've just discovered: if you bought the Cheers or Bubbles package from within an EU country you are exempt from the VAT at any rate. I live in France, I paid for the package with a UK credit card, both countries are within the EU :-)

 

 

I'm not convinced there is any merit in what they appear to be saying, but I will clarify.

 

When purchasing online they will add any taxes if applicable (or so it said). At that time, I suspect they could have (I say could - though would have been stupid if they did) add the VAT to the purchase price. I had it confirmed in an email saying that the purchase price ALREADY includes tax - presumably US tax, so obviously you cant apply two lots of taxes.

 

But no one in the EU would be exempt from paying VAT if its for a chargeable item, so I'm unclear what he really means.

 

If you are saying buying on the ship, then he would be chargeable of the tax just like anyone else.

 

The only real exemption from VAT - and it applies to EVERYONE is if cheers is purchased on line. And the reason for this is that this Spanish IPA is only applicable for things you part money with onboard. (ie charged to your S&S card.) Carnival for some strange reason thinks its obliged to charge a tax on the pre bought package and its most definitely not correct.

 

Instead of encouraging people to use this completely legal loophole, they have made a complete hash of it, spoiling peoples holidays and creating a lot of angry people which could have so easily have been avoided.

 

If only Karnyval would listen.

Edited September 13, 2016 by les37b

[les37b]

Here is an email I sent to Carnival UK this morning, I wait with bated breath.

 

Good morning, my name is *********. We recently cruised with you on the Vista which sailed out of Barcelona 26th August for eight days. Our cabin was 9202.

 

Unfortunately we did not know that you were charging 21% spanish VAT on all food and drink purchases on board. I did query this quite robustly with guest services as I thought the 21% figure was quite wrong and way to high as it should be in the region of 10%. Guest services stuck to the party line and insisted it was correct.

 

I have kept in contact with other people who sailed and there is an open thread on this on cruise critic. It seems you have had a change of heart and are now saying the VAT rate is 10% on further sailings in the EU. Here is an email you sent to a guest who is departing from Barcelona shortly

Greetings folks,

We know you must be excited about your upcoming Mediterranean cruise aboard the beautiful Carnival Vista.

We are sorry to inform you that your pre-purchase order of Bottomless Bubbles and/or CHEERS! beverage package was inadvertently cancelled. A full refund was posted to your original form of payment. We invite you to revisit www.carnival.com to repurchase.

While we have you, please be aware since your cruise departs from Spain (a member of the European Union) and calls only on countries within the European Union, we are required by law to charge a Value Added Tax (VAT). Food and drink purchases at bars and restaurants will be subject to a 10% VAT during your cruise. The tax on Bottomless Bubbles and CHEERS! beverage package for this cruise will be charged at the package price (not per drink).

We sincerely apologize for any inconvenience this may cause and thank you for your understanding. Most importantly, we are looking forward to welcoming you aboard for a fun and memorable cruise.

As my onboard spend was $988 I look forward to a refund on the 11% VAT overcharge on my drinks purchases as we were subject to 21% and not the correct 10%. You clearly made a mistake and I am glad you have aknowledged the fact there was "confusion" regarding your interpretation of EU law.

 

I look forward to hearing your views on the matter.

 

Yours sincerely ********.

I will keep you posted as they have admitted in writing now we were all overcharged by 11%. How did this happen? what a shambles of a company.

 

Harry, if they don't refund, then it can only be considered theft or fraud or both.

 

And you shouldn't need to be asking. It should be automatic. Those on the first cruise who had cheers and charged the "what it would have cost" tax if they pre bought cheers are also due a refund of all drinks tax charged, along with the second cruise for those who pre-bought or bought on board, who were hit by this same imaginary tax.

 

On the cruise we were both on, they got cheers correct. Pre-bought had no tax applied and those who bought on board got charged the 10% tax at source on the package and nothing more. Obviously as you observed, they overcharged everyone who paid for drinks onboard, though interestingly they got the upcharge in restaurants correct.

 

Dunno where those on the 3rd September stand. The Tax was applied correctly I think for drinks, but anyone who pre-bought Cheers and given a refund for that, probably ended up not drinking as much and paid more than their cheers might have been! Same for those wanting to buy aboard. Clearly this is a contract thing and the fact they have cancelled a pre-purchased package for their "unfortunate lack of understanding", i truly think these people are due compensation.

 

Hopefully nickel and diming is not on the agenda and dealt with properly.

 

Has anyone in the UK contacted Watchdog? I'm sure they would happily apply the pressure on your behalf.

Edited September 13, 2016 by les37b

[LaCal]

Now I've read this:

 

The Sept 23rd cruise does not visit Greece so the VAT is 10% and charged of the package price. On cruises that visit Greece the VAT must be charged on the value of each beverage ordered and the Vat will change during the cruise.

 

On cruises that originate in Greece VAT is 24% the entire voyage and is charged on the value of each drink.

[LIMPIT]

I totally agree, I have mailed both my TA and Carnival for clarity but not expecting to receive it from either, how annoying [emoji35]

I agree with you, they should be promoting the pre purchase of drink packages to avoid the vat that becomes valid if purchased aboard !

 

 

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[les37b]

Now I've read this:

 

The Sept 23rd cruise does not visit Greece so the VAT is 10% and charged of the package price. On cruises that visit Greece the VAT must be charged on the value of each beverage ordered and the Vat will change during the cruise.

 

 

How many times can a company get it wrong? If you have bought cheers you CANNOT then charge a "what it would have cost" tax.

 

Or are you saying its just on drinks you do have to pay for? If it is, then it would be correct to charge when in a greek port (unless it originates from Greece of course which you rightly pick up on below.)

 

 

On cruises that originate in Greece VAT is 24% the entire voyage and is charged on the value of each drink.

 

Not in Italian, French or Spanish Ports its not - and only if the ship doesnt stop outside the EU.

 

 

Whats crazy here, is the Spanish have picked up on a loophole to scrape revenue from Cruisers. There should be no tax when in international waters, but the good old EU have facilitated this.

 

So why Carnival hasn't figured out that happy cruisers is the way to go and allow / encourage people to pre-buy cheers to avoid buying on board and paying a tax they can legally avoid, I will never understand.

 

Of course, I am assuming the money collected as tax is forward. :rolleyes:

Edited September 13, 2016 by les37b

[LIMPIT]

Letter received by guests sailing out of Athens today [ATTACH]394188[/

Edited September 13, 2016 by LIMPIT
Bad quality photo

[les37b]

Letter received by guests sailing out of Athens today [ATTACH]394188[/ATTACH]

 

So small I cant read it! The fiends! Is that how they're hiding it these days? :p

[LIMPIT]

Will try again [emoji23]

 

 

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[LIMPIT]

Removed poor quality photo

Edited September 13, 2016 by LIMPIT

[LIMPIT]

Essentially guests sailing out of Athens today were advised that the 24% tax would be applied to drinks/food for the duration of the cruise, and because the tax would be applied to every drink consumed, the drink packages were withdrawn for this cruise, and any guests which had pre purchased would receive a refund !

So after recently changing their mind, looks like Carnival are changing the procedure again [emoji848]

 

 

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[Carinthalas]

I am also on board for the 1st October Cruise.

 

I guess if they have a package I will buy it and if they do not I will not. Either way I will not let it spoil the holiday.

[aksjs]

Don't forget though we were not able to buy the cheers! We were told we needed to do in board on the 3rd September at the pre cruise price!

[Chester]

All of these Cheers and VAT issues because the Vista is not stopping at Kusadasi as originally scheduled and yet 32 ships mostly from the major cruise lines are still visiting Kusadasi in September and 33 ships in October.

I wonder how many of those yet to sail on the Vista over the next month or so would support reinstating the Kusadasi port stop.....????

[LaCal]

Well my so called Official email for the OCT 1st sailing came in

 

It states No Cheers or Bubbles pkgs......Vat will start out at 10% leaving from Barcelona for food and drink and go up to 24% once we reach Crete.....So that's going to be 4 high days of the 24% tax on food n drink

 

Also our Vat will be charged on a per drink basis since NO CHEERS WILL BE SOLD BEFORE OR DURING THE CRUISE 😂😂😂😥😥

[featherw8]

I have a question for anyone who has very recently sailed - Carnival says the VAT applies to goods and services. Carnival excursions and the internet package are services. Was anyone charged VAT on those, even if an excursion was pre-booked and paid for in full?

 

I'll try asking on the general Vista Board, as well.

Edited September 13, 2016 by featherw8

[les37b]

All of these Cheers and VAT issues because the Vista is not stopping at Kusadasi as originally scheduled and yet 32 ships mostly from the major cruise lines are still visiting Kusadasi in September and 33 ships in October.

I wonder how many of those yet to sail on the Vista over the next month or so would support reinstating the Kusadasi port stop.....????

 

Good point.

 

You don't need to get off.... And if it saves you a few thousand $ per person by allowing to to avoid paying tax at 24% and drinking 15 drinks.....

 

Hmmmm.... Yes please.

 

 

Mind you, I'd still get off. Istanbul is quite a way away.

[les37b]

I have a question for anyone who has very recently sailed - Carnival says the VAT applies to goods and services. Carnival excursions and the internet package are services. Was anyone charged VAT on those, even if an excursion was pre-booked and paid for in full?

 

I'll try asking on the general Vista Board, as well.

 

I recently sailed.... And I will give my opinion not what carnival are doing.

 

We weren't taxed for the iMax. I was surprised at that.

 

I don't think you are taxed for tours. They are saying it's because the tours already include tax at source. Carnival may want to rethink that. If they are selling the tours as a middleman introducing them to you. However that's not the case. Carnival are selling and adding their big profit margin. That should be taxed. Of course carnival are too astute to upset the apple cart and the huge mark up.

[featherw8]

I recently sailed.... And I will give my opinion not what carnival are doing.

 

We weren't taxed for the iMax. I was surprised at that.

 

I don't think you are taxed for tours. They are saying it's because the tours already include tax at source. Carnival may want to rethink that. If they are selling the tours as a middleman introducing them to you. However that's not the case. Carnival are selling and adding their big profit margin. That should be taxed. Of course carnival are too astute to upset the apple cart and the huge mark up.

 

Thanks, les! I'm on the last Med. cruise and we were advised this morning that not only will Cheers! and Bottomless Bubbles NOT be available to us, but we will also be subject to an across-the-board 24% VAT on everything - food, drinks, goods and services - for the duration of the cruise. I wanted to find out if there might be other things taxed that hadn't occurred to me. I didn't think about the iMax. That's good to know.