Beware additional 10% charge on purchases for ships departing Spain

Spain has invented another innovative way to reduce its deficit.

It is now charging 10% vat on any purchases for ships departing from Spanish ports. It is then charged for the whole cruise. We departed Barcelona at 6.oo pm and this was the only time we were in Spanish waters or a Spanish port but we were charged an additional 10% on top of the 18% for drinks etc. for the whole cruise. A bottle of Grolsh for example was $7.50 plus 18% plus 10%ie. $7.50 plus 28% making it $10.30 for a pint.

I was at guest services on the first night when a very disgruntled passenger was complaining about the charge and trying to get it removed but with no success. I suspect he may have stuck to the free soft drinks from then on as to say he was displeased is an understatement. I think Oceania should have pre-warned us of the additional tax now being charged. It made expensive drinks very expensive.

This is not Oceania trying to make additional income, as I initially thought, as I have seen the same complaint on NCL pages.

Unless I am reading this wrong then the bar charge should have applied only when in Spanish waters. Oceania should have explained and informed passengers of this tax and the impact on purchases made.

Spanish 10% IVA tax is applicable to all bar purchases, select dining cover charges and room service charges when in Spanish waters only.

Spanish 21% IVA tax is applicable to purchases made in the on board shops, photo gallery and products purchased in the spa (excluding treatments and services) when the cruise starts from a Spanish port.

Unless I am reading this wrong then the bar charge should have applied only when in Spanish waters. Oceania should have explained and informed passengers of this tax and the impact on purchases made.

 

Spanish 10% IVA tax is applicable to all bar purchases, select dining cover charges and room service charges when in Spanish waters only.

 

Spanish 21% IVA tax is applicable to purchases made in the on board shops, photo gallery and products purchased in the spa (excluding treatments and services) when the cruise starts from a Spanish port.

You would have thought that was the case but we were charged it the whole 10 day cruise which from day 2 onwards was France, Italy, Greece, Croatia and back to Italy. As stated before our only time in Spanish waters was when we sailed from Barcelona on the fist night.

This is pretty crazy. I have never heard of such a thing. We will be in a number of Spanish ports in August, so it got my attention. Luckily, we're not drinkers, don't spend much time on the ship when it's in port, and seldom purchase anything from the stores. I'm not a spa person, and there are no cover charges or room service charges on Oceania, so that leaves little to worry about. However, just so I know what I'm getting myself into, can I assume that the 10% tax only applies when the ship is within Spanish waters (for example, in port, possibly right out of port? does it include Canary Islands?) and not while it is anywhere else we'll be visiting (Portugal and Gibraltar)?

My cruise starts from Lisbon, so I think I'm OK on the 21% tax.

Can you get a refund of this tax, assuming you're not a resident of Spain?

Please refresh my memory - cruise ship shops are closed when the ship is in port, right?

Thanks.

It's not a new thing, although the rules may recently have been changed a little so it affects more cruises.

It used to be the case that it applied to any cruise departing from Spain and ending in any EU port, that had ports WHOLLY within the EU. This meant that a cruise that had Monte Carlo, for example, as a port was exempt from the tax. We've experienced it both ways, the first time we departed from Barcelona and Monaco was included, therefore no tax. The second time the itinerary was Spain, France and Italy and the tax applied.

I'm not sure I've explained it very well, sorry!

I've just found this page on the P&O site which explains it better than I did. By the way, a quick read tells me that this also applies to Italian ports. Did anyone else read it that way too?

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

We left Barcelona on November 20th and we were warned about the surcharge but it was only when in Spanish waters.

I'm quite sure we were not charged later on.

Mura

You would have thought that was the case but we were charged it the whole 10 day cruise which from day 2 onwards was France, Italy, Greece, Croatia and back to Italy. As stated before our only time in Spanish waters was when we sailed from Barcelona on the fist night.

All are part of the EU -- therefore you are charged. We did Venice to Istanbul. - if you touch non Eu within 7 days = no charge.

Presume if you did a Barcelona to New York == first 7 days you get stuck with the tax..

OK, I'm getting a little bit closer to understanding, except that the P&O information is P&O specific and I'm having a hard time grasping when the Italian tax applies (which could have been in play for whiteowl's cruise in addition to Spanish tax!) and when the Spanish tax applies, and whether it's based on not being in a non-EU port during a particular period or what! It almost sounds like applicability is based on a seven day period rather than where the ship is on any given day as I had initially assumed. Off I go to see if Gibraltar is part of the EU, although I think I know the answer!

Whew - and I thought our county bag tax was confusing!

All are part of the EU -- therefore you are charged. We did Venice to Istanbul. - if you touch non Eu within 7 days = no charge.

 

Presume if you did a Barcelona to New York == first 7 days you get stuck with the tax..

The 10% IVA for the bar should have applied to those drinks in Spanish waters only.

So how is the tax applied to drinks? If you board a ship in Lisbon and travel overnight to a Spanish port, when the ship reaches the coast of Spain, are the bartenders supposed to charge you 10% Spanish tax, or only when you dock in Spain, or what? All countries we visit are in the EU, and Italy is not in the mix, so I assume we will be charged when we're in "Spainish waters" but I'm still confused about the mechanics.

If one pre bought the premium drinks package, for a cruise departing a Spanish port, would that drinks package have to charge the VAT? The sale was made in the US, but goods exchanged hands in Spain.: confused:

I'm still trying to figure this out, as we visit quite a few Spanish ports on our cruise in August. What I've managed to find out so far is that, based on what I've read on Cruise Critic, there may be some discretion in how the rules are applied because other lines have apparently done it differently than P&O (although P&O probably has a large UK base rather than American base, which may make things a bit different). I read a post that stated that Celebrity told its passengers in the newsletter each night when the tax would apply, based on where they were - and presumably charged only when the ship was within 12 (I think) miles of Spain or sitting in port. My read of the P&O link implies something different.

I WAS able to find out that some countries that are EU members have territories and whatnot that are exempt from the country's VAT rules. Luckily, the Canary Islands, while associated with Spain, are exempt, which helps me with with at least 2 days of my cruise! I was hoping to find out from Oceania just how they apply the rules (take each week separately, and see if there's a non-EU country in there, or just take things day by day), but I just called and they told me they were not able to give specific information at this time. They acknowledged that there would likely be Spanish taxes on my cruise, but that I need to speak to Reception upon boarding to find out when they apply, to which venues, and the percentage amount.

I know I'm making a big deal about this, but really I'm not all that concerned, as I'm a very light drinker, and seldom purchase stuff from the ship's store (although my husband sometimes does). However, now my curiosity has been piqued, and so if anyone has definitive information on how the rules are applied, or were recently applied on an Oceania cruise that visited (but didn't start in) Spain, I'd love to hear them, including specifics like the drink packages that pinotlover mentioned, use of shipboard credit in the ship store, etc - although I suppose that wouldn't apply to me, as we don't start in Spain. Also, does any other country besides Spain (and I guess Italy?) require VAT taxes while on a cruise ship? I don't like surprises....

The 10% IVA for the bar should have applied to those drinks in Spanish waters only.

Only if you had a non EU port. If EU in its entirety and originated in a Spanish port then the 10% is charge throughout the cruise.

If you buy merchandise and are entirely EU and non EU resident you can get a VAT refund at the end of cruise (last EU port)...

 

If you buy merchandise and are entirely EU and non EU resident you can get a VAT refund at the end of cruise (last EU port)...

You'll only receive a partial refund as they charge you for the privilege.

So far I've never been able to get a refund on any European VAT tax I've paid because of the minimum amount needed to claim it. I'm not expecting Spain to be any different. I think I looked it up about a month ago and it was around 100 euros from one particular vendor.

Tax on liquor is never refundable I assume....

i think Spain is violating the EU laws but who is intending to go to the court for it ...:mad:

i think Spain is violating the EU laws but who is intending to go to the court for it ...:mad:

The bad news is they are not.

The tax applies in the following situations:

Your cruise starts and ends in spain, the tax applies for the whole duration of the cruise without visiting non EU or exempt ports (eg canaries)

When the ship is docked at a Spanish port, regardless of where cruise starts or ends, and until out of spanish waters.

If visiting another country that may have its own rules, then those override spanish rules.

Sent from my iPhone. Please excuse tryping orrers.

The bad news is they are not.

The tax applies in the following situations:

Your cruise starts and ends in spain, the tax applies for the whole duration of the cruise without visiting non EU or exempt ports (eg canaries)

 

When the ship is docked at a Spanish port, regardless of where cruise starts or ends, and until out of spanish waters.

 

If visiting another country that may have its own rules, then those override spanish rules.

 

 

 

Sent from my iPhone. Please excuse tryping orrers.

We started in Spain and ended in Italy, we did not visit Spain again and paid 10% all cruise.

We started in Spain and ended in Italy, we did not visit Spain again and paid 10% all cruise.

Yes, that's exactly what he said:

i.e. you started in Spain and you never left the EU

Well, I don't think that's exactly what swissdave said, but I'm getting closer to understanding this. If you're on a cruise ship that visits a port in Spain or travels close enough to be out of international waters and instead in "Spanish waters" then you'll be charged the 10% bar tax for any days after that if you did not visit a non-EU country or did not visit an exempt area (like Canary Islands or Gibraltar). (However, does that mean that if you end up in Barcelona, you're only charged for one day, or the whole cruise? Is there anything that applies to one week's period, or does the tax apply to the whole cruise, or the whole cruise starting from the point you were close to Spain, or what?) What happens if you have a non-EU port on your itinerary - do you pay 10% tax whenever you are in Spanish waters (including Spanish ports) but not anywhere else, assuming there are no other countries that charge their own IVA or VAT?

As for the 21% tax for products (from spa, ship store, etc.), that only pertains if your ship starts in Spain, right, (and whether you stop at a non-EU port or not, or for how long, doesn't matter).

So, my cruise starts in Lisbon on what I'll call day 1. Overnight on ship. The afternoon of day 2 we depart and head around towards Spain. Day 3 we're in Spain. Day 4 we're in Gibraltar, exempt. That night we head back through Strait of Gibraltar and down south, passing a bit of Spain on the way. Day 5 we're at sea. Day 6 we're in Canary Islands (exempt). Day 7 Canary Islands (exempt). Day 8 we're in Madeira, Portugal. Day 9 at sea. Days 10, 11 and morning of the 12th we're in Spain. Does anyone want to hazard a guess as to how much and when we'll be charged Spanish IVA tax? I'm still a bit confused.

All I can say is that I hope other big countries with long coastlines in the EU don't decide to start charging cruise ships, too! Then again, it's pretty easy money for them. They tell the cruise lines what their laws are, and sit back while the cruise lines deal with irate customers!

Last year's cruise was so nice - no visas, entry fees, VAT taxes charged on the ship. Maybe I should change my cruise and go back to the British Isles and Norway!

If you start in Spain and don't leave the EU or stop in an EU Country which has a tax law which supersedes Spain's law then you pay the Tax.

If Spanish Ports are interim stops on your Cruise, then you pay the Tax, only while the ship is under Spanish jurisdiction.

If you start in Spain and don't leave the EU or stop in an EU Country which has a tax law which supersedes Spain's law then you pay the Tax.

 

If Spanish Ports are interim stops on your Cruise, then you pay the Tax, only while the ship is under Spanish jurisdiction.

Excellent summary, Jim. Folks, it's also true! On our Azamara Quest Barcelona to Rome cruise, which had four stops in Sicily, but all stops within the EU, we paid the tax on our shipboard purchases, including the specialty restaurant meals (for which Azamara charges, unlike Oceania.)

Oh my! I guess I have to look more carefully at itineraries in the future. We didn't have much of a problem on the BCN-Rio cruise last fall since our only Spanish ports were Barcelona and Cartagena, and I gather the others were exempt.

But I sure wouldn't want to being paying VAT on a dinner in La Reserve or Privee! And I thought the shops were duty free. No? (Very possible that I'm wrong since I rarely buy anything in the shops unless we have OBC to spend.)

Mura

I think I understand, but I could be wrong. We're sailing B2B from Monaco to BCN to Miami. On the firsts leg, we have several stops in Italy before arriving in BCN. I expect that the 10% will be applied when in Spanish waters only, unless there is an Italian fee first. On the T/A, we have 2 more ports in Spain before arriving on day 5 in Tenerife. So I think that the fees would apply only to that point. Am I right, wrong, or just hopelessly confused? Will the info as to the fees be spelled out in Currents?