Free At Sea package doesn't apply in Spanish waters

[Lisa353]

I have just read an article that says that when you have the Free at Sea package with NCL, when you are docked at a Spanish port or are in Spanish waters, you must pay 10% VAT on every drink you get.  Is this correct?  The article says it started this year.

 

Cruise line’s ‘all-inclusive’ drinks package doesn’t apply in Spanish waters (msn.com)

[D_And_K_gocruising]

Yep, if the local government has tax taxes or whatever you will be charged while docked drink package or not.

[Lisa353]

1 minute ago, D_And_K_gocruising said:

Yep, if the local government has tax taxes or whatever you will be charged while docked drink package or not.

So if your cruise was leaving from Barcelona and went to Palma next, would you still be charged the tax when sailing between the 2 ports because you are in Spanish waters or just when you are in port?

[ggTexasGal]

10 minutes ago, Lisa353 said:

So if your cruise was leaving from Barcelona and went to Palma next, would you still be charged the tax when sailing between the 2 ports because you are in Spanish waters or just when you are in port?

The article does state this, "VAT applies when the vessel is within 12 nautical miles (22km) of the Spanish coast."

[Lisa353]

Just now, ggTexasGal said:

The article does state this, "VAT applies when the vessel is within 12 nautical miles (22km) of the Spanish coast."

That's why I was asking the question.  Have you sailed from Barcelona or another Spanish port since this has been enforced?  It would be good to hear from someone that has sailed from a Spanish port this year.

[shof515]

how is this different compare to other ports that already have a drink tax when the ship is in port?

[Lisa353]

8 minutes ago, shof515 said:

how is this different compare to other ports that already have a drink tax when the ship is in port?

If you have your Free at Sea package, your drinks are free so you don't pay anything.  The article is saying that when you are in a Spanish port, with these free drinks you will then be charged 10% of the value of the drink for VAT.  So it will end up the drink isn't free because you have the VAT to pay.

 

Every time we have sailed with NCL, we have had a drinks package and have never been charged any extra VAT/tax as everything is included in the price.

[Georgia_Peaches]

When we sailed out of Barcelona (closed loop) we were able to redeem our VAT at the airport by submitting receipts.  Not sure if/how this would apply to the VAT added to drinks.  We did some significant shopping in Barcelona and recovered almost all of our VAT.

[Capitan Obvious]

11 minutes ago, Lisa353 said:

If you have your Free at Sea package, your drinks are free so you don't pay anything.

 

The generality of this statement is part of what makes it inaccurate.

 

Drinks are never free. First, you have to buy a cruise to get them. That aside, the Free at Sea promotion does not give you free drinks, but it covers the cost of a drink package...and only the cost of the package itself, you are still responsible for charges for drinks outside the package limits, gratuities, and taxes. NCL is only paying the cost of the package itself on your behalf.

 

The package pays for your drinks, they are not free.

 

If a Government implements a tax on either the purchase or the value of an item, that tax get passed on and you as the consumer has to pay it in the end. That is all that is happening here.

[Lisa353]

17 minutes ago, Capitan Obvious said:

Drinks are never free. First, you have to buy a cruise to get them. That aside, the Free at Sea promotion does not give you free drinks, but it covers the cost of a drink package...and only the cost of the package itself, you are still responsible for charges for drinks outside the package limits, gratuities, and taxes. NCL is only paying the cost of the package itself on your behalf.

 

The package pays for your drinks, they are not free.

 

Maybe I could have worded it better but I just assumed that people who have sailed with NCL before would understand what I mean.

 

My main point is that when we have got the Free at Sea package I have never needed to pay any money for drinks.  I have adhered to the package conditions.

 

The whole point of my post is really asking people who have actually cruised from a Spanish port, if the article is correct and you will have this added charge if you get a drink when the ship is in a Spanish port or Spanish waters.

[Russiamomm]

4 minutes ago, Lisa353 said:

Maybe I could have worded it better but I just assumed that people who have sailed with NCL before would understand what I mean.

 

My main point is that when we have got the Free at Sea package I have never needed to pay any money for drinks.  I have adhered to the package conditions.

 

The whole point of my post is really asking people who have actually cruised from a Spanish port, if the article is correct and you will have this added charge if you get a drink when the ship is in a Spanish port or Spanish waters.

I was in Spain on NCL last Spring.  While I’m port or in n Spanish waters they charged the VAT on the value of each drink. You do not pay for the drink itself if you have a drink package.  Just the VAT.   It’s no different than sailing out of a US port where local taxes are applied until you reach international waters, New York for example. 

[Georgia_Peaches]

10 minutes ago, Lisa353 said:

Maybe I could have worded it better but I just assumed that people who have sailed with NCL before would understand what I mean.

I knew what you meant.  Yes, the VAT is added to the value of the drink.  You'll likely sign a receipt and it will show up on your on-board account/folio to be paid out at the end of your cruise.  Keep track of your receipts.  It really should amount to a very nominal fee when all is said and done.

[Lisa353]

2 minutes ago, Russiamomm said:

I was in Spain on NCL last Spring.  While I’m port or in n Spanish waters they charged the VAT on the value of each drink. You do not pay for the drink itself if you have a drink package.  Just the VAT.   It’s no different than sailing out of a US port where local taxes are applied until you reach international waters, New York for example. 

I sailed out of New York last year and wasn't charged any tax on drinks I had.

 

So basically, while you are in port they will just charge the VAT on the drink to your onboard account?

[Russiamomm]

2 minutes ago, Lisa353 said:

I sailed out of New York last year and wasn't charged any tax on drinks I had.

 

So basically, while you are in port they will just charge the VAT on the drink to your onboard account?

I don’t know how you managed to avoid the tax in NY.  I’ve sailed out of Manhattan at least ten times and always had to pay the sales tax on drinks until we reached international waters. 
 

Yes, the tax is added to your onboard account. 

[Lisa353]

Just now, Georgia_Peaches said:

I knew what you meant.  Yes, the VAT is added to the value of the drink.  You'll likely sign a receipt and it will show up on your on-board account/folio to be paid out at the end of your cruise.  Keep track of your receipts.  It really should amount to a very nominal fee when all is said and done.

Thanks for that.

 

It will be a small amount but then those small amounts will add up to a bigger amount depending on how many drinks you have and even more if the cruise is stopping at another Spanish port.  It's a bit rubbish when you have already paid to get your drinks free.

[Liljo22]

49 minutes ago, Lisa353 said:

I sailed out of New York last year and wasn't charged any tax on drinks I had.

 

So basically, while you are in port they will just charge the VAT on the drink to your onboard account?

In most US ports, the state requires sales tax to be paid on items sold.  Some cruise lines just eat the sales tax and some will charge it to the customer even if they have a package.  

[Travelling2Some]

We were charged the extra tax in Spanish ports in November of last year ('22) and have also had to pay extra tax in New York several times.  There was a big flap about it here on CC at the time with several long threads.  UK people were particularly upset saying that this constituted a violation of UK consumer protection law.

[Travelling2Some]

2 minutes ago, Liljo22 said:

In most US ports, the state requires sales tax to be paid on items sold.  Some cruise lines just eat the sales tax and some will charge it to the customer even if they have a package.  

Agree.  In our experience we have only been charged extra on NCL.  We have never encountered this on another line.

[Liljo22]

Just now, Travelling2Some said:

Agree.  In our experience we have only been charged extra on NCL.  We have never encountered this on another line.

I know Royal will eat the charge but I have been charged on Carnival also even with the Cheers package.  

[skittl1321]

2 minutes ago, Travelling2Some said:

Agree.  In our experience we have only been charged extra on NCL.  We have never encountered this on another line.

Carnival charges taxes on drinks sold in Galveston or within a certain distance.   They don't start the cheers package until day 2 on those cruises because of this.

 

The difference with Spain though, is they are charging it the entire cruise if you don't leave the EU; not just while in their waters. (The 12-miles applies if you leave the EU on the cruise.)

[Liljo22]

Just now, skittl1321 said:

Carnival charges taxes on drinks sold in Galveston or within a certain distance.   They don't start the cheers package until day 2 on those cruises because of this.

 

The difference with Spain though, is they are charging it the entire cruise if you don't leave the EU; not just while in their waters. (The 12-miles applies if you leave the EU on the cruise.)

They don't start the Cheers package because Texas requires cruise ships to only sell alcohol purchased from Texas distributors.  That means the lines are paying more per bottle since they buy in much larger quantities from their normal distributors.  

[Lisa353]

5 minutes ago, Travelling2Some said:

We were charged the extra tax in Spanish ports in November of last year ('22) and have also had to pay extra tax in New York several times.  There was a big flap about it here on CC at the time with several long threads.  UK people were particularly upset saying that this constituted a violation of UK consumer protection law.

I must have missed that at the time then.  This article was the first time I had heard about it.  We cruise from Barcelona with MSC in October last year but we weren't charged anything.

[skittl1321]

2 minutes ago, Liljo22 said:

They don't start the Cheers package because Texas requires cruise ships to only sell alcohol purchased from Texas distributors.  That means the lines are paying more per bottle since they buy in much larger quantities from their normal distributors.  

Thanks for the correction.  

[Travelling2Some]

Haven't sailed Carnival in many years although we do have a booking on the Mardi Gras coming up.  Have never been charged the extra anywhere on Royal.  Technically Royal Caribbean embarks from New Jersey so maybe that has something to do with it?

[Lisa353]

3 minutes ago, skittl1321 said:

The difference with Spain though, is they are charging it the entire cruise if you don't leave the EU; not just while in their waters. (The 12-miles applies if you leave the EU on the cruise.)

So if you are doing a Med cruise which covers Spain, France and Italy because they are all part of the EU, you will be charged for the whole cruise?