Taxes on drinks when ported (Norwegian Epic Mediterranean Cruise)

[Eivind]

First time doing a big cruise, and trying to get an accurate overview of the actual costs we can expect – which is easier said than done. Going with the Norwegian Epic which is departing from Rome, Italy on August 2nd (so roughly a week away as of writing this).

 

We have the Premium Beverage Package, and just found out about this: "your check may reflect applicable VAT and/or taxes for certain ports or itineraries".

 

From what I understand, your free drinks may come with a tax, depending on the port?

Do they announce when you enter/exit international waters, so you know when the taxes will be added?

Will the taxes be added to the food at the restaurants too, if you have a meal while docked?

Is there anywhere we can find what the added taxes are for each port we will be stopping at, if we want to have anything to drink while docked?

 

This is a list of all the scheduled ports.

 

• Rome (Civitavecchia), Italy
• Naples, Italy
• Florence/Pisa (Livorno), Italy
• Cannes, France
• Palma, Majorca, Spain
• Barcelona, Spain
• Ajaccio, Corsica, France

 

Any help would be much appreciated!

[UKstages]

a sign is usually placed on the bar to indicate that tax will be collected until after you enter international waters. the tax collected varies by municipality, but is usually less than one US dollar per drink. no tax on meals that i'm aware of, but if you order a beverage with your meal and are still not yet in international waters, the drink will be taxed.

Edited July 25, 2022 by UKstages

[RD64]

Just order the drink and don’t worry about the taxes.

 

[phillygwm]

I don't recall the Mediterranean ports specifically, which leads me to believe that it wasn't exorbitant.  As others have mentioned, US ports tax roughly $1 per mixed drink. You'll pass out before you run a significant tab 🙂

 

[Harratine]

Just back from the Epic.  For the premium beverage and premium plus package they will only add the taxes if you go over the package amount (I.e. more than the $15 per drink in the PBP).  Biggest one to watch is Starbucks if you don’t have the Premium plus.  That cruise is a serious port hog (like most waking hours next to a pier).  Awesome trip, be sure to plan some down time as the cruise is non-stop go.

[phillygwm]

9 minutes ago, Harratine said:

Awesome trip, be sure to plan some down time as the cruise is non-stop go.

Seriously, this.  I could barely walk at the end of that cruise.  I mean, my legs were literally rubbery at the airport baggage claim.  I ate, slept, and played a bit of blackjack on the ship.

[Eivind]

11 hours ago, Harratine said:

For the premium beverage and premium plus package they will only add the taxes if you go over the package amount (I.e. more than the $15 per drink in the PBP).  Biggest one to watch is Starbucks if you don’t have the Premium plus.

 

Thank you for sharing! 😀 So you're sure taxes aren't added when you have the Premium Beverage Package and you get drinks that are included in said package when you're docked?

 

The language on all the documents is often unclear with a lot of small-print text, so just want to be super extra sure.

[schmoopie17]

So...many people, upon boarding the ship, find the nearest bar to have a welcome aboard drink, or three. Those are taxed?

[Eivind]

43 minutes ago, schmoopie17 said:

So...many people, upon boarding the ship, find the nearest bar to have a welcome aboard drink, or three. Those are taxed?

 

From how I'm understanding @Harratine, the taxes on the drinks when the ship is docked are covered by the beverage package you might already have. So they remain "free".

 

But if you don't have such a package or are going off-package, you will then have to pay whatever taxes are applicable when the ship is docked. And there will (usually) be signs at the bars telling you when taxes are added, according to @UKstages.

 

Please correct me if I'm misunderstanding how it works.

[Harratine]

5 hours ago, Eivind said:

 

From how I'm understanding @Harratine, the taxes on the drinks when the ship is docked are covered by the beverage package you might already have. So they remain "free".

 

But if you don't have such a package or are going off-package, you will then have to pay whatever taxes are applicable when the ship is docked. And there will (usually) be signs at the bars telling you when taxes are added, according to @UKstages.

 

Please correct me if I'm misunderstanding how it works.

I think your summary is spot on.

[UKstages]

hmmm... sorry to be the bearer of bad news, but - in my experience - taxes (which are marginal at best) are indeed due on any drink while in select ports. it has nothing to do - again, in my experience - with which drink package you have or whether you exceed the maximum allowable cost for a drink in that package. the tax is on the retail price of the drink, even if there is no charge for the drink because you're drinking for "free" as part of a beverage package.

[MCMC100]

You pay tax on drinks while in a port that taxes alcohol in accordance with local law (which in my experience is most, but not all ports). Doesn’t matter the price of the drink or if you have the drink package, it depends on the local law. (For example, when in a Canadian port the ships may only open one bar per deck - that’s Canada’s law).   When tied up in port, the ship is basically the same as the hotel or bar across the street from the port .  On port days my Onboard Account is riddled with $.78, $.95, $1.05 etc charges for misc taxes on Starbucks coffee and drinks. You can check your account on your stateroom tv - trust me, the charges will be reflected.
 

I have noticed they do sometimes put a sign on the bar saying they are charging tax, but it’s easy to miss. Look at it this way, if the onboard tax free stores and casino are closed - you may be paying a local tax.  They’re closed because you are  within some territorial area with rules; Rule 1 for any government entity is find a way to charge a tax.

[thedriver23]

I did a cruise from Barcelona a few years back and I do recall taxes being chargeable at Barcelona

 

There was a sign on the bar stating taxes where chargeable (even though we had the drinks package).

 

The cruise then went, I think to Morroco and the sign was removed as soon as we where in the international waters.

 

I am on the Epic on 7th aug and I expect the same to happen - however as this ship docks at all port that are in the EU - I am hoping that vat is only charged in Barcelona - but knowing my luck it will be all of them for the cruise as in theory it remains in the EU.

 

I cant change so wont worry about it.

[cameronp12]

Just to hop on this thread, is this unique to NCL? I’ve been on other cruise lines all over Europe and never paid taxes on a drink while having their drink package. Not sure if NCL chooses to “pass” it on to the customer and other lines just “eat” the taxes or what. But I promise I’ve never been charged for a drink while in a port if I had a drink package. I look at my tab religiously to make sure I am not being charged for anything I shouldn’t be.

[KeithJenner]

This cruise has very specific issues, as it never leaves the European VAT area and the tax is chargeable for the entire cruise, not just when in port.

 

I have done the same cruise (boarding in Barcelona) a few times, but not for a few years, so am not totally up to date with it. However, the usual situation is that VAT is charged on any purchases (meals, drinks, shop purchases) that aren't covered by a pre purchased package.

 

Things have changed from time to time. There was a very short period when it was charged on drinks covered by the beverage package, but that only lasted a few years.

 

Unless something has changed recently then you are fine as long as you have the package, but anyone paying per drink gets stung. I also wouldn't wait until boarding before purchasing anything, just in case.

[Eivind]

43 minutes ago, KeithJenner said:

This cruise has very specific issues, as it never leaves the European VAT area and the tax is chargeable for the entire cruise, not just when in port.

 

Huh, so the cruise technically is never in international waters, so you'll always have to pay added taxes, including on any "free" drinks you get when you have a beverage package? Or did I misunderstand?

[KeithJenner]

9 minutes ago, Eivind said:

 

Huh, so the cruise technically is never in international waters, so you'll always have to pay added taxes, including on any "free" drinks you get when you have a beverage package? Or did I misunderstand?

Correct on the first bit, but they don’t charge it if you have the beverage package (or at least I’m not aware that they do). I’m sure that if they were charging on drinks covered by the beverage package then it would be all over these boards, as it was for the short time that they did so a few years ago.

[Eivind]

Seems to be a bit back-and-forth here on what the situation is and how it works.

 

But it seems like "free drinks" are covered, even while docked, and you won't be charged additional taxes. But if you buy anything not covered, there will be taxes added while docked, depending on the country.

 

 

[KeithJenner]

14 minutes ago, Eivind said:

Seems to be a bit back-and-forth here on what the situation is and how it works.

 

But it seems like "free drinks" are covered, even while docked, and you won't be charged additional taxes. But if you buy anything not covered, there will be taxes added while docked, depending on the country.

 

 

The majority of the answers you have received are talking more generally about how these things usually work, but they aren’t taking into account the specific issues raised by the ship not leaving the EU VAT zone.

 

Unfortunately, I can’t say what the exact situation is right now as I haven’t done the itinerary for a few years, but it is very likely that any answers that just state the usual rules (tax just charged when you are in port, regardless of whether you have the package) are irrelevant for your situation.

 

We need someone who has done the Eastern Med itinerary recently to confirm

what the current situation is.

[Eivind]

25 minutes ago, KeithJenner said:

We need someone who has done the Eastern Med itinerary recently to confirm

what the current situation is.

 

@Harratine(above) had just been on the Epic, and it seemed to be the case that there were no added taxes when you were sticking to items covered by your package.

[LGW59]

So even if there is a tax added and you have the drink package, what is the cost...maybe $1.50, but perhaps if one drinks a lot it may matter, to me, I am on vacation, cest la vie.

 

[KeithJenner]

14 minutes ago, Eivind said:

 

@Harratine(above) had just been on the Epic, and it seemed to be the case that there were no added taxes when you were sticking to items covered by your package.

Yes, I’d missed that. It seems to confirm that there isn’t a charge with the beverage package.

 

Still not confirmed whether the tax applies for the whole of the cruise on things not covered by the package (not just in port). I don’t see any reason why that would have changed though.

[KeithJenner]

5 minutes ago, LGW59 said:

So even if there is a tax added and you have the drink package, what is the cost...maybe $1.50, but perhaps if one drinks a lot it may matter, to me, I am on vacation, cest la vie.

 

It would have an impact if you have upgraded to the premium plus package. The tax on some of those drinks could be significant.

[Ottawa_Cruiser]

In my experience, this only adds dollars to your final shipboard account. Enjoy your cruise and drinks and don't worry about the taxes.

[Iwantsun]

We cruised on the Escape for the transatlantic back in April. We had the premium beverage package. 

We had to pay taxes while docked in New York. 

We had for 4 days in a row ports of call in Spain and had to pay taxes while in port AND while sailing in Spanish waters. That was a twist that even the staff wasn't fully aware of.  By the 4th day in Spain, the Freestyle Daily had a mention about it: "Please be reminded that 10% tax will be added on food and beverage items while we are in Spanish water (up to 12 nautical miles)"

We did not have any specialty restaurants booked while we were sailing in Spain so I cannot answer regarding the tax on food.