Tax on food and beverage while docked in Miami?

[steamboats]

My comments on this thread (along with most others I assume) is on the basis that NCL is being charged tax on these drinks, and is therefore passing it on to the customer.

 

That´s definitely not the way it works with EU VAT. NCL is charged VAT when they buy the bottles (on the price of the bottle). VAT is a purchase based tax. It can be only applied to purchases of goods or services. So it can be applied to the package based on the price of the package. But as the single drinks aren´t "sold" but are sort or prepaid you can´t be charged any VAT on them.

 

VAT is nothing NCL is keeping. But they can substract the VAT they had paid for anything (ex. the liquor bottle they bought) from the amount they gathered (ex. the package they´ve sold). The difference goes to the tax authorities (of Spain or what country ever... valid for cruises out of the UK too).

 

steamboats

[KeithJenner]

That´s definitely not the way it works with EU VAT. NCL is charged VAT when they buy the bottles (on the price of the bottle). VAT is a purchase based tax. It can be only applied to purchases of goods or services. So it can be applied to the package based on the price of the package. But as the single drinks aren´t "sold" but are sort or prepaid you can´t be charged any VAT on them.

 

VAT is nothing NCL is keeping. But they can substract the VAT they had paid for anything (ex. the liquor bottle they bought) from the amount they gathered (ex. the package they´ve sold). The difference goes to the tax authorities (of Spain or what country ever... valid for cruises out of the UK too).

 

steamboats

 

Yeah, it was a bad choice of words when I said about being charged the tax. I meant tax that they have to collect on their sales. I'm an accountant, and pretty well versed in how VAT works and is accounted for.

 

Clearly the way it is dealt with on the ships is very unusual. For example, prices are supposed to be displayed with VAT included, which isn't the case on the NCL ships. This is so clearly against the rules that either the cruise lines are just ignoring them and getting away with it (unlikely), or they have some specific agreements with the authorities as to how they have to deal with these things.

 

Considering we don't have any knowledge of such discussions, it is very difficult for us to comment on whether they are doing things correctly or not. I think that it's a fair assumption that they are paying the correct amounts over, but I really can't be bothered to work out how that then relates to what we are charged, especially as they will get the money out of us somehow.

[Hermiones parents]

I find it tacky simply because NCL is making money hand over fist on these drink packages. Please do not respond to tell me they dont as that is silly. Between the number crunching they certainly do and the 18% “service charge” on this “free” package, another added fee X does not impose....I mean come on. You’re going to bother passengers with 18 cents?

I left Celebrity for a reason. Will likely return in the future but I made the choice to pay what NCL charges here, there and everywhere so it’s on me. However, for someone coming from a line that does not charge this, it can be strange and create questions like the OP had.

 

 

 

McDonalds, Walmart, Exxon, Apple all make money hand over fist and charge you sales tax too

 

 

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[steamboats]

For example, prices are supposed to be displayed with VAT included, which isn't the case on the NCL ships. This is so clearly against the rules that either the cruise lines are just ignoring them and getting away with it (unlikely), or they have some specific agreements with the authorities as to how they have to deal with these things.

 

That´s only valid for Europe. But onboard you´re not in Europe anymore. The EU VAT law specifically includes ship travels within EU ports without a non-EU port on the itinerary. It´s even pretty unclear whether this "as long as you are in Spanish waters" thing is according to the law (on an itinerary which has a non EU-port). Not even EU-tax experts do know the answer.

 

 

steamboats

[Froggitt]

And we have a drink package so no charge for our beverages. But our server told us that because we were docked in Miami that we had to pay a food and beverage tax on what we ordered that was not covered by our drink package. He said that tax would apply at any bar or restaurant we drank at while we were docked in Miami.

Thats the bit I dont understand in this thread, why he was being charged for the drinks and therefore the tax if he had the drink package.

[xriva]

Thats the bit I dont understand in this thread, why he was being charged for the drinks and therefore the tax if he had the drink package.

 

 

 

That’s the issue - the drink cost is included in the package, but the tax is not. So, my understanding is if you got a $5 drink, you would be charged the sales tax on $5 but just the tax (eight percent or whatever it is.)

 

 

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[Two Wheels Only]

Thats the bit I dont understand in this thread, why he was being charged for the drinks and therefore the tax if he had the drink package.

 

The drinks totaled $23.90. That was covered by the UBP.

The service charge would have been $4.78 (20%) if he was buying drinks without the UBP. Since he had the UBP and paid the service charge on the UBP before boarding (currently 20%), the $4.78 is "covered" by the UBP service charge.

 

 

The tax of $1.91 is the 8% tax on the $23.90.

[Froggitt]

But why is there $23.90 of drinks to have service and tax on it? My question is, why isnt the drinks charge $0.00, leading to no tax and no SC? The SC is already paid on the drinks package anyway on booking, I dont understand why it is being charged on the cost of the drinks.

 

If its a PAYG drink, sure, SC and tax apply. But he said he had a drinks package.

[Two Wheels Only]

But why is there $23.90 of drinks to have service and tax on it? My question is, why isnt the drinks charge $0.00, leading to no tax and no SC? The SC is already paid on the drinks package anyway on booking, I dont understand why it is being charged on the cost of the drinks.

 

If its a PAYG drink, sure, SC and tax apply. But he said he had a drinks package.

NCL still charges for the drink.

The UBP (which the OP has) covers that cost. The service charge on the UBP covers the service charge on the drink.

Having the UBP doesn't change the cost of the drink. The UBP just covers the first $15 of the drink.

Edited January 13, 2018 by Two Wheels Only

[ray98]

But why is there $23.90 of drinks to have service and tax on it? My question is, why isnt the drinks charge $0.00, leading to no tax and no SC? The SC is already paid on the drinks package anyway on booking, I dont understand why it is being charged on the cost of the drinks.

 

If its a PAYG drink, sure, SC and tax apply. But he said he had a drinks package.

 

Because the drinks aren't free, they hold the same value and NCL is just comping it. The state has decided that all alcoholic drinks served in their jurisdiction will be taxed on that value just like they would on land. NCL passes that sales tax on just like local bar or restaurant at the dock.

[Froggitt]

I guess because I didnt see a drinks receipt the last cruise, I assumed it said zero.

[newmexicoNita]

Thats the bit I dont understand in this thread, why he was being charged for the drinks and therefore the tax if he had the drink package.

The taxes are based on what the drink costs regardless of whether you have the drink package. I don't think this is too hard to understand.

[beantownmike]

If you go to a restaurant in Miami of course the government charge a tax.

 

 

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[KeithJenner]

I guess because I didnt see a drinks receipt the last cruise, I assumed it said zero.

 

 

 

I think that the change recently has just been that the slips aren’t signed.

 

If tax is payable then they do still get them signed, from memory (not happened to us lately).

 

 

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[irockadidas]

For those of you that want to look it up to make sure NCL isnt ripping you off:

http://www.flrules.org/gateway/ruleno.asp?id=12A-1.0115&Section=0

 

Complimentary food items given to the customer free of charge as promotional, complimentary, or a courtesy are subject to use tax and the applicable discretionary sales surtax on the total cost of the items given away. The total cost of the complimentary food items includes the cost of labor and other overhead costs necessary to prepare and serve the food items.

[sid_9169]

Let me see if I've got this straight... Guy books a cabin in the Haven, then complains about a charge for $1.91?

[xriva]

I guess because I didnt see a drinks receipt the last cruise, I assumed it said zero.

 

 

 

I think if you look at the receipts, it will have the charge and then zero it out. Net cost is zero (for the drink) but it is charged.

 

Same for UDP - we will get a receipt that shows all the items we ordered for dinner and the last line is “UDP Discount” which zeroes it out.

 

 

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[steamboats]

For those of you that want to look it up to make sure NCL isnt ripping you off:

http://www.flrules.org/gateway/ruleno.asp?id=12A-1.0115&Section=0

 

Complimentary food items given to the customer free of charge as promotional, complimentary, or a courtesy are subject to use tax and the applicable discretionary sales surtax on the total cost of the items given away. The total cost of the complimentary food items includes the cost of labor and other overhead costs necessary to prepare and serve the food items.

 

Is a food itemd - here beverage - regarded as complimentary when you have paid for it in a package????:confused::confused:

 

steamboats

[KeithJenner]

Is a food itemd - here beverage - regarded as complimentary when you have paid for it in a package????:confused::confused:

 

 

Don’t know, but it’s further complicated by the fact that most people haven’t actually paid for the package, but got it as a promo.

 

 

 

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[irockadidas]

Is a food itemd - here beverage - regarded as complimentary when you have paid for it in a package????:confused::confused:

 

steamboats

 

 

Irrelevant to the post..

 

If you buy it you pay tax. If you get it for free you get taxed on the cost. Either way you pay the tax.

[ray98]

Is a food itemd - here beverage - regarded as complimentary when you have paid for it in a package????:confused::confused:

 

steamboats

 

 

Nothing matters other than the value of what is served.

[steamboats]

Don’t know, but it’s further complicated by the fact that most people haven’t actually paid for the package, but got it as a promo.

 

Yes, in the US. But for European bookings its not a promo it´s included in our cruise fare (and the fare is higher). And I assume there would be some kind of uproar if a Brit or a German is charged tax on a prepaid drink in a US port.

 

But anyway I´m talking about people who paid for the package and then tax should be on the package already. And then you don´t get the individual drink for free or complimentary as you´ve already paid for it with the package price.

 

But obviously in the US it´s different ...

 

steamboats

[LrgPizza]

Yes, in the US. But for European bookings its not a promo it´s included in our cruise fare (and the fare is higher). And I assume there would be some kind of uproar if a Brit or a German is charged tax on a prepaid drink in a US port.

 

But anyway I´m talking about people who paid for the package and then tax should be on the package already. And then you don´t get the individual drink for free or complimentary as you´ve already paid for it with the package price.

 

But obviously in the US it´s different ...

 

steamboats

 

 

Tax is not charged on the package at the time you purchase it or receive it as a promo.

[steamboats]

Tax is not charged on the package at the time you purchase it or receive it as a promo.

 

That may be the mistake of NCL... RCI/X do charge the Spanish VAT on all purchases online for cruises out of Barcelona. So when you buy anything online (with the head quarters of a company in Miami) and you cruise out of Florida shouldn´t the tax be added to your online purchase? Just asking because I wanted to order something online in the US and the state tax was added to this order.

 

 

steamboats

[roger001]

Miami) and you cruise out of Florida shouldn´t the tax be added to your online purchase? Just asking because I wanted to order something online in the US and the state tax was added to this order.

 

 

steamboats

 

 

A US state sales tax?