VAT Tax for cruises from Barcelona

Curious about how this works.

 

I noticed the fine print on the room service menu photo that someone posted about the VAT tax being added to room service orders...assuming the ones with a charge. Which got me thinking about this whole VAT tax thing.

 

We'll be on the 13 day transatlantic on Harmony in October.

 

If we dine at a specialty restaurant while on board during the crossing, is the VAT tax added? Anything we purchase on board?

 

Will it be added to items we purchase online before we sail? Beverage Package, etc.?

Curious about how this works.

 

I noticed the fine print on the room service menu photo that someone posted about the VAT tax being added to room service orders...assuming the ones with a charge. Which got me thinking about this whole VAT tax thing.

 

We'll be on the 13 day transatlantic on Harmony in October.

 

If we dine at a specialty restaurant while on board during the crossing, is the VAT tax added? Anything we purchase on board?

 

Will it be added to items we purchase online before we sail? Beverage Package, etc.?

As I mentioned on your other question, we've never been charged VAT on any of our 3 transatlantic cruises.

 

As I understand it, you get charged Spanish VAT if you start in Barcelona and all your ports are in the Schengen zone.

I'm on a Brilliance cruise out of Barcelona on 7/1. As it's been explained to me, because my cruise visits Montenegro, which is non-EU (I'm guessing "Schengen" equals EU?) we would only be charged VAT while docked in Barcelona and in Spanish waters. (Save that first drink for AFTER we leave Spanish waters!!)

 

Since a TA would be visiting non-EU ports, my guess is the same rule would apply - VAT while docked at Barcelona and until you leave Spanish waters. It's just a guess though.

We were on last year's Allure TA out of Barcelona, and since the itinerary brought us out of the EU, no VAT was added.

 

But having said that, in 2012 on our first Med cruise out of Barcelona, a port call to Tunis was cancelled, thus making the entire cruise intra-EU. I recall that as a result of this, all the shop prices were jacked up by 15%. Can't remember whether this was also the case in relation to other items, like for example drinks. But all other Med cruises that we have taken, have been sure to include at least one non-EU country (usually Monte Negro or Turkey) so in those cases we haven't had to pay any VAT charges.

Also, my understanding (?) any purchases done on line, prior to cruise departure, no VAT is charged on those items.

Also, my understanding (?) any purchases done on line, prior to cruise departure, no VAT is charged on those items.

I'm not sure about that. I thought someone recently reported an extra 10% tacked on for VAT on a sailing out of Barcelona.

When we sail out of Barcelona, we stop in Malaga and Palma de Mallorca, both Spanish.

 

How does that affect the "yes or no" on Spanish VAT, experts?

When we sail out of Barcelona, we stop in Malaga and Palma de Mallorca, both Spanish.

 

How does that affect the "yes or no" on Spanish VAT, experts?

As far as I can tell, those stops are all in the Schengen zone:

 

https://pilgrimsandashesdotcom.files.wordpress.com/2013/12/schengen-map-4.png

I'm not sure about that. I thought someone recently reported an extra 10% tacked on for VAT on a sailing out of Barcelona.

 

Unless it recently changed, but from the US no VAT charged on purchases made on our 12 nite Medit. cruise some 3 years ago. Also, I believe, the 10% is on drinks and food, otherwise it's 20+%.

Might want to check if it is Schengen or EU as the two are similar but different. For example Sweden is part of Schengen but not EU.

Might want to check if it is Schengen or EU as the two are similar but different. For example Sweden is part of Schengen but not EU.

 

You are so wrong. Sweden is both part of the EU and the Schengen. Your are thinking of Norway...

 

Fredrik

I thought cruises stopping in Croatia or Montenegro were exempt from VAT, but recently read that VaT now applies for both. Can anyone confirm or deny?

I think that the VAT under discussion comes under the European Union Taxation and Customs Union (see http://ec.europa.eu/taxation_customs/index_en.htm ), and is NOT a function of the Schengen Treaty. Croatia has been in the EU since 1 Jul 2013; Montenegro is not an EU member (nor is it a member of the European Monetary Union, which has not kept them from using the Euro as their only currency, but that is another story), but it has applied for membership.

 

If I'm correct the Spanish VAT on cruises from Barcelona is operational for the entire cruise unless the cruise stops outside the EU Value Added Tax Area. Note that there are areas that for some purposes are within the EU but are NOT within the EU VAT Area (see the discussion of the EU VAT area at https://en.wikipedia.org/wiki/European_Union_value_added_tax#EU_VAT_area ), including Gibraltar and the Canary Islands.

 

Thom

When we sail out of Barcelona, we stop in Malaga and Palma de Mallorca, both Spanish.

 

How does that affect the "yes or no" on Spanish VAT, experts?

 

Is your cruise a roundtrip? The VAT is collected the whole cruise on roundtrips out of Barcelona that don't call at a non EU port. Otherwise it will only be collected in Spanish territorial waters.

I think that the VAT under discussion comes under the European Union Taxation and Customs Union (see http://ec.europa.eu/taxation_customs/index_en.htm ), and is NOT a function of the Schengen Treaty. Croatia has been in the EU since 1 Jul 2013; Montenegro is not an EU member (nor is it a member of the European Monetary Union, which has not kept them from using the Euro as their only currency, but that is another story), but it has applied for membership.

 

If I'm correct the Spanish VAT on cruises from Barcelona is operational for the entire cruise unless the cruise stops outside the EU Value Added Tax Area. Note that there are areas that for some purposes are within the EU but are NOT within the EU VAT Area (see the discussion of the EU VAT area at https://en.wikipedia.org/wiki/European_Union_value_added_tax#EU_VAT_area ), including Gibraltar and the Canary Islands.

 

Thom

 

You are correct. People are getting confused between EU, the Schengen zone, the Eurozone and the EU VAT area.

 

If there is a port stop outside the EU VAT area, then the cruise is most likely VAT free once you are in international waters. If the cruise visits only ports in the EU VAT area then VAT is on everything purchase on that cruise.

 

So transatlantic cruises are VAT free once they are in international waters.

You are correct. People are getting confused between EU, the Schengen zone, the Eurozone and the EU VAT area.

 

If there is a port stop outside the EU VAT area, then the cruise is most likely VAT free once you are in international waters. If the cruise visits only ports in the EU VAT area then VAT is on everything purchase on that cruise.

 

So transatlantic cruises are VAT free once they are in international waters.

 

Ok, so just clarifying... Montenegro is NOT part of the EU and is NOT listed as being included in the VAT zone. So we should be VAT-free after leaving Spanish waters on the Brilliance Med/Venice cruises that visit Kotor, correct?

Ok, so just clarifying... Montenegro is NOT part of the EU and is NOT listed as being included in the VAT zone. So we should be VAT-free after leaving Spanish waters on the Brilliance Med/Venice cruises that visit Kotor, correct?

 

Unless there has been a recent change. A couple of years when I cruised out of Barcelona our cruise visited Kotor. VAT was not collected outside Spanish territorial waters.

Ok, so just clarifying... Montenegro is NOT part of the EU and is NOT listed as being included in the VAT zone. So we should be VAT-free after leaving Spanish waters on the Brilliance Med/Venice cruises that visit Kotor, correct?

I make no claim of being a EU VAT lawyer (or lawyer of any type), but it would certainly be my understanding that you will have escaped the clutches of Spanish VAT once in international waters. I suspect that is one reason Kotor is on the agenda - PLUS sailing in through the Bays of Kotor is absolutely gorgeous! Definitely something to be up to see as you sail in. I have been lucky enough to have landed on Our-Lady-of-the-Reef twice, and the view from the top of the hill above Kotor is almost worth the effort

 

Thom

I make no claim of being a EU VAT lawyer (or lawyer of any type), but it would certainly be my understanding that you will have escaped the clutches of Spanish VAT once in international waters. I suspect that is one reason Kotor is on the agenda - PLUS sailing in through the Bays of Kotor is absolutely gorgeous! Definitely something to be up to see as you sail in. I have been lucky enough to have landed on Our-Lady-of-the-Reef twice, and the view from the top of the hill above Kotor is almost worth the effort

 

Thom

 

Thanks Thom! Gorgeous picture!!! I think we're scheduled to be in at 1pm, so hopefully being up won't be an issue! :D

When we sail out of Barcelona, we stop in Malaga and Palma de Mallorca, both Spanish.

 

How does that affect the "yes or no" on Spanish VAT, experts?

 

These are both Spanish and subject to normal Spanish VAT rules.

I'm not sure about that. I thought someone recently reported an extra 10% tacked on for VAT on a sailing out of Barcelona.

 

If that is someone who is based in the EU at the time of purchase then the VAT will be applied. For those based outside the EU at the time of purchase, VAT should not be applied as you are buying the package from a non-EU company whilst in a non-EU country (i.e. RCL in the US, or Canada, etc.) The fact you 'consume' the purchase in the EU is not relevant as VAT is a point of sale tax.

Same deal for RT cruises out of Rome?

Haven't thought of this before, but will be boarding the Serenade in Copenhagen on Sunday. Ship calls in Sweden, Estonia, Russia (the only non-EU country) and Finland before returning to Copenhagen. Looks like this would be similar to the Med cruises that call in Montenegro and Turkey. I'll check with GS on Sunday. Stay tuned!

I'm not sure about that. I thought someone recently reported an extra 10% tacked on for VAT on a sailing out of Barcelona.

 

We pre purchased premium package and VOOM - both at the discounted rates - and we weren't charged anything extra

Haven't thought of this before, but will be boarding the Serenade in Copenhagen on Sunday. Ship calls in Sweden, Estonia, Russia (the only non-EU country) and Finland before returning to Copenhagen. Looks like this would be similar to the Med cruises that call in Montenegro and Turkey. I'll check with GS on Sunday. Stay tuned!

 

Just boarded the Serenade in Copenhagen. Spoke with GS, and was told that 18% VAT was applicable on this cruise, regardless of location, whether in territorial waters or on high seas. Whether this tax would be passed on to guests was not clear. I was advised to always check the prices of goods and services procured onboard. Somewhere in the shop or on the price list there should be something in fine print with details regarding how VAT rules are implemented. I don't usually buy much onboard, but I will follow up in each of these few cases.