Italy's VAT Tax during cruises

I know this has been mentioned before, but I was hoping someone would be willing to rehash it for me. I'm going on a cruise that leaves from Venice. It makes a stop in Kotor, Montenegro, which I don't believe is part of the EU. I've heard that cruise lines are supposed to charge the 12% VAT tax on liquor and possibly products purchased throughout the entire cruise if the ship does not call on a non-EU country. I think when when do, tax is only charged when the ship is in an Italian port, and possibly for a while (or whole day/night?) after that.

Has anyone been charged the tax, and if so, how was it applied in the particular situation? For example, if you departed from an Italian port and didn't visit an EU country, when was tax charged? What about it you only had a port call or two in Italy?

I hear Spain does this, too???????

Having done an awful lot of European travel (on both land and ships) we do not normally focus on the taxes. It is what it is and it is just not an issue to boggle our mind. And since the OP comes from Maryland (a state that seems to love their taxes) I am surprised it is an issue. But on our many cruises we have noticed that local tax will be added to bar tabs while docked in Barcelona. Or course this also occurs in some USA ports. We have never been aware of a VAT tax charged when in International waters in the European region, but perhaps we were just enjoying the drink and did not pay attention to the tab.

Hank

Yup, I've only ever heard about it in Barcelona too, but 12% extra on a $6 drink probably wouldn't stop me from ordering it, nor would I even notice. . .;). I have never heard of it being an issue (other than when docked in Barcelona as Hank says) so I don't think there's anything to worry about.

I don't think it has anything to do with whether the ship calls at a non-EU port or night. It is where the cruise starts that determines it and there are different rates and regulations. Spain levies a 10% (I think) rate on bar bills and any dining cover charges, but only while the ship is in Spanish waters. For the duration of the cruise, it levies a higher rate (21%?) on purchases made in the ship's shops, photo gallery and spa products. Italy levies a similar higher rate charge on photos, shop purchases and spa products for the duration of the cruise but it does not levy any tax on bar bills or dining, even when the ship is in Italian waters.

I think I've got that right. Hope so!

yes if you don't call at a non EU port then VAT applies to purchases throughout the whole cruise ie Spanish VAT if departing from Barcelona and Italian if from Venice

we had pre purchased the drink package so cant comment whether would be charged on drinks bought on board but our trip from Venice to the Greek isles Italian VAT was charged on all onboard shop purchases

yes if you don't call at a non EU port then VAT applies to purchases throughout the whole cruise ie Spanish VAT if departing from Barcelona and Italian if from Venice

we had pre purchased the drink package so cant comment whether would be charged on drinks bought on board but our trip from Venice to the Greek isles Italian VAT was charged on all onboard shop purchases

fabnfortysomething, I've just looked at P&O cruises explanation on this and they don't mention anything about a distinction between calling at EU and non-EU ports.

https://ask.pocruises.com/help/PO/on-shore/iva_tax

Anyway, as the OP is calling at a non-EU port, if you are correct about the distinction, she will be OK anyway.

fabnfortysomething, I've just looked at P&O cruises explanation on this and they don't mention anything about a distinction between calling at EU and non-EU ports.

 

https://ask.pocruises.com/help/PO/on-shore/iva_tax

 

Anyway, as the OP is calling at a non-EU port, if you are correct about the distinction, she will be OK anyway.

no it's not something the cruiselines warn in advance so can come as an unpleasant surprise when on board

have sailed NCL and there was an explanatory letter in stateroom saying Italian VAT would apply to onboard purchases all cruise as would not be calling at a non EU port.This was NCL Jade from Venice to Greek islands.We did a back to back and the next week visited Turkey so no VAT payable.

NCL Epic med cruise from Barcelona attracts Spanish VAT all cruise as doesn't call at non EU port

A couple of years ago there was a long thread on NCL boards when itinery started and lots of complaints from cruisers who were unaware of this policy until on board.

As you say the OP will be OK if there is a non EU port involved.Actually most Med cruises involve a non EU port eg Gibraltar,Turkey so many experienced cruisers will never come across this added VAT issue

http://cruiseforums.cruisecritic.com/showthread.php?t=2031194&highlight=spanish+vat

the above link is to a similar question -posts 2 and 8 explain best

Thank you, everyone, for the helpful information. No, I don't think any tax will be imposed except for the day/night when the ship is docked (or cruises away from) Venice. However, I like to know as many facts before I cruise, so just wanted to clarify. I saw some of the discussion about a year ago when researching a cruise in Spain, but couldn't remember the specifics, especially about Italy, as we didn't go there.

On our cruise, we found a letter in our stateroom that told us about the tax, and from links provided by fabfortysomething above, that is typical. I give kudos to P&O for providing specific (and I guess tailored-to-each cruise) info on their website.

In general in Europe the VAT isn't obvious because (on British lines at least, and I think on european ones too) the price stated on the price list usually includes all relevant taxes - just as it does on land.

fabnfortysomething, I've just looked at P&O cruises explanation on this and they don't mention anything about a distinction between calling at EU and non-EU ports.

 

https://ask.pocruises.com/help/PO/on-shore/iva_tax

 

Anyway, as the OP is calling at a non-EU port, if you are correct about the distinction, she will be OK anyway.

I realize that I'm looking at a different cruise line than the one I'm traveling, but I expect it should be the same???

If I'm understanding this correctly, leaving from Rome stopping only in Greece and then back to Rome-- I will be charged VAT for all hard goods but nothing on bar bills. Correct?

If I'm understanding this correctly, leaving from Rome stopping only in Greece and then back to Rome-- I will be charged VAT for all hard goods but nothing on bar bills. Correct?

That's how I understand it. I've been on a cruise out of Italy but as I don't use the spa or buy photos and I rarely get anything from the shop, I wouldn't be likely to have noticed it.

That's how I understand it. I've been on a cruise out of Italy but as I don't use the spa or buy photos and I rarely get anything from the shop, I wouldn't be likely to have noticed it.

What about bar tab? Anything there?

What about bar tab? Anything there?

Not on cruises from Italy, no.

***** my cruise from Venice on Splendour, we visited Split & Turkey and the Greek Islands. At the time Croatia was not in the EU so there was no VAT charged anywhere on the ship even when in Venice on the first day.

We bought the Drinks package onboard as soon as we embarked and no VAT was charged.

On my previous European Cruise from Palma, we were charged VAT on the drinks package as all our ports were in the EU.

Hope this makes sense.

***** my cruise from Venice on Splendour, we visited Split & Turkey and the Greek Islands. At the time Croatia was not in the EU so there was no VAT charged anywhere on the ship even when in Venice on the first day.

 

We bought the Drinks package onboard as soon as we embarked and no VAT was charged.

 

 

 

On my previous European Cruise from Palma, we were charged VAT on the drinks package as all our ports were in the EU.

 

 

 

Hope this makes sense.

Think so: drinks from Spain embarkation: VAT

drinks from Italy: no VAT

Either ports VAT on hard goods

I start in Rome and only visit EU countries. I want to wait to buy the drinks package on day 2 and it's my understanding that there is no VAT for beverages.

I start in Rome and only visit EU countries. I want to wait to buy the drinks package on day 2 and it's my understanding that there is no VAT for beverages.

Correct.