Spain VAT

Hi, folks

We are considering a transatlantic cruise out of Barcelona. The first stop is Malaga, Spain, then onto the transatlantic.

I have read about the Spain VAT, and that it applies to all food and beverage purchases @ 11%, and to all other purchases @ 21% including Internet packages. My question is if I buy an Internet package for the entire cruise will the VAT apply for the entire package or is it prorated for only the day's we're in Spain waters? Also, I'm assuming that once the ship is out of Spanish waters the VAT is no longer applied.

Thanks so much for your advice!

On both of our transatlantic cruises out of Barcelona, there was no VAT tax on any purchases for the entire cruise.

We just did a cruise out of Barcelona & on our first sea compass, it stated that the drinks all cruise would have an 18% added VAT.

I didn't purchase internet, but if the tax is for that too, it will, most likely be, applied all cruise.

I was on an Eastbound TA in 2013 to Barcelona that stopped at Cadiz. We had the VAT on purchases only following the call at Cadiz and were reminded to purchase items in the shops prior to arrival at the first port in Spain.

As a Westbound TA is not only taking in ports within the EU they should not need to charge VAT, but the wording is vague in some way indicating that they would apply VAT for beverages and in the shops from Barcelona to Malaga, but that no VAT would be applied following the call at Malaga.

The problem with the VAT is that they change the application of the law annually and it becomes very difficult to keep up with the exact practice of applying the tax from year to year.

I was on an Eastbound TA in 2013 to Barcelona that stopped at Cadiz. We had the VAT on purchases only following the call at Cadiz and were reminded to purchase items in the shops prior to arrival at the first port in Spain.

 

As a Westbound TA is not only taking in ports within the EU they should not need to charge VAT, but the wording is vague in some way indicating that they would apply VAT for beverages and in the shops from Barcelona to Malaga, but that no VAT would be applied following the call at Malaga.

 

The problem with the VAT is that they change the application of the law annually and it becomes very difficult to keep up with the exact practice of applying the tax from year to year.

Thanks for the explanation. I should have clarified in my post above that our two TAs from Barcelona were westbound.

does your bill at the end of the cruise have all of the VAT added up onto one form? I'd rather not save 100 receipts from drinks and everything else if I don't have to...

does your bill at the end of the cruise have all of the VAT added up onto one form? I'd rather not save 100 receipts from drinks and everything else if I don't have to...

I think your question relates to the refund of VAT. VAT can only be refunded on sealed products that are taken outside the EU. VAT paid on services and items that are open for use or consumed is not refunded.

RCI only post total charges on the guest account, but do have access to the charge detail at Guest Services.

The Barcelona Airport website has some links for information about VAT refunds that might be helpful.

http://www.aena.es/csee/Satellite/Aeropuerto-Barcelona/en/Page/1237561190251/

does your bill at the end of the cruise have all of the VAT added up onto one form? I'd rather not save 100 receipts from drinks and everything else if I don't have to...

You can't claim VAT back on anything consumed or services rended within the EU only on goods being exported. These same goods are then subject to any applicable import taxes on arrival in the states!

We just did a cruise out of Barcelona & on our first sea compass, it stated that the drinks all cruise would have an 18% added VAT.

I didn't purchase internet, but if the tax is for that too, it will, most likely be, applied all cruise.

Where the cruise is "closed loop" within the EU only and stops at no non-EU ports the VAT is applicable for the duration of the cruise.

Where a cruise stops outside the EU then VAT is only applicable in Spanish territorial waters (basically when in port) after you sail and shops onboard open VAT is no longer applied. So don't buy in port anything you could wait until outside of the waters!

You can't claim VAT back on anything consumed or services rended within the EU only on goods being exported. These same goods are then subject to any applicable import taxes on arrival in the states!

In that vain, make sure that you request a validated VAT tax form from the seller of any goods that is being exported as customs will not supply any necessary forms. If I recall correctly, the item had to have a value of over 200 euros.

bummer. 20% adds up quickly on board. glad it is a port intensive cruise.

We just left the Allure of the seas and we embarked in Rome and returned to Rome and still had to pay that VAT tax. It was 21% on all products purchased including the unlimited internet plan as we purchased that. All food and drinks were 10% VAT tax which is NOT refundable.

The VAT tax is ridiculous if you ask me, if you purchase items you pay 21% and you have to have your receipt and VAT form filled out by the seller - when you go to the airport you wait in a huge line for 45 minutes to get your document stamped then you have to go to the other side of the airport to get your refund. If you don't have time build into your flight time it is not worth it even getting your refund and I think they know this. Most Americans are not getting a VAT form filled out and are not asking for a refund.

We just left the Allure of the seas and we embarked in Rome and returned to Rome and still had to pay that VAT tax. It was 21% on all products purchased including the unlimited internet plan as we purchased that. All food and drinks were 10% VAT tax which is NOT refundable.

 

 

 

The VAT tax is ridiculous if you ask me, if you purchase items you pay 21% and you have to have your receipt and VAT form filled out by the seller - when you go to the airport you wait in a huge line for 45 minutes to get your document stamped then you have to go to the other side of the airport to get your refund. If you don't have time build into your flight time it is not worth it even getting your refund and I think they know this. Most Americans are not getting a VAT form filled out and are not asking for a refund.

Why is it ridiculous? Maybe next time I'm in USA I find on my hotel bill random state occupation taxes etc I should refuse to pay them as ridiculous.

VAT is sales tax on purchases and how governments generate revenue in Europe.

Like you say most people who are exporting goods from Europe don't bother and small souvenirs and T-shirt gifts etc are low ticket items anyway..

So if you bought a $10 drink, they add the 18% tip and the VAT of 10%, you end up paying almost $13 for the drink. Am I understanding the Vat correctly?

So if you bought a $10 drink, they add the 18% tip and the VAT of 10%, you end up paying almost $13 for the drink. Am I understanding the Vat correctly?

Yes, not sure of exact breakdown but bottom line is you pay grats and VAT. This is why a complimentary drinks package is so attractive a booking incentive for UK cruisers booking a Med cruise!

So if you buy an Ultimate drinks package and book your internet package both online before sailing do you avoid the tax ?

We just left the Allure of the seas and we embarked in Rome and returned to Rome and still had to pay that VAT tax. It was 21% on all products purchased including the unlimited internet plan as we purchased that. All food and drinks were 10% VAT tax which is NOT refundable.

 

The VAT tax is ridiculous if you ask me, if you purchase items you pay 21% and you have to have your receipt and VAT form filled out by the seller - when you go to the airport you wait in a huge line for 45 minutes to get your document stamped then you have to go to the other side of the airport to get your refund. If you don't have time build into your flight time it is not worth it even getting your refund and I think they know this. Most Americans are not getting a VAT form filled out and are not asking for a refund.

VAT is levied on the supply of goods and services within the EU. Its a big revenue generator for EU countries. On land its included in the prices displayed. Its no more 'ridiculous' than local and State sales tax in the US when you go to the till and these are added on to your bill. Equally the city taxes I pay when staying in hotels in the US - no different. As one of your former presidents once said -'There are only two certainties in life....'

The VAT tax is ridiculous if you ask me, if you purchase items you pay 21% and you have to have your receipt and VAT form filled out by the seller - when you go to the airport you wait in a huge line for 45 minutes to get your document stamped then you have to go to the other side of the airport to get your refund. If you don't have time build into your flight time it is not worth it even getting your refund and I think they know this. Most Americans are not getting a VAT form filled out and are not asking for a refund.

As a European citizen,

1. I would not say reciprocal that the US state-/local taxes are ridiculous

2. I would love to see a US airport that offers US state tax refunds in a 45 Minute line with a further refund payment counter at the other side of the US airport- there are none!

3. No whatsoever US state office offers forms to any tourists to have their state taxes refunded.

Got me?

So if you bought a $10 drink, they add the 18% tip and the VAT of 10%, you end up paying almost $13 for the drink. Am I understanding the Vat correctly?

To be exact the VAT would be $1.00 and the tip $1.80. So the total would be $12.80.

The VAT is not charged on the tip.

To be exact the VAT would be $1.00 and the tip $1.80. So the total would be $12.80.

 

The VAT is not charged on the tip.

There's case law on this! If tip/service charge is mandatory then its part of the 'consideration' so VAT is charged on the tip as far as I recall (or at least its supposed to be).

VAT is levied on the supply of goods and services within the EU. Its a big revenue generator for EU countries. On land its included in the prices displayed. Its no more 'ridiculous' than local and State sales tax in the US when you go to the till and these are added on to your bill. Equally the city taxes I pay when staying in hotels in the US - no different. As one of your former presidents once said -'There are only two certainties in life....'

Big difference between sales tax % charged by the state/municipalities vs the rate charged on the continent. Room taxes and occupancy rates, that is a different animal. Also, a few years ago, we sailed out of Barcelona on a 12 nite which covered all EU countries and I pre-booked specialty restaurants and excursions and no VAT charged. An earlier Med., one of the ports was Croatia, prior to becoming a EU member, and no vat charged whatsoever during the cruise--don't know if one purchased an item while in Soanish waters if RCL charged a vat.

Ps. Tried one time to recover vat for items/services purchased at on land at the Barcelona airport , and the line was so long and moved so slow that it was not worth it.

On our Rome to Rome trip a couple of years ago the customs agents came onboard and were available in the atrium. Basically no lines and easy process.

On our Rome to Rome trip a couple of years ago the customs agents came onboard and were available in the atrium. Basically no lines and easy process.

Last Sept. Barcelona to Barcelona, the Custom Agents came on board the Liberty but only processed VAT tax forms from purchases made on the ship, not on land.

So if you buy an Ultimate drinks package and book your internet package both online before sailing do you avoid the tax ?

No, they add the tax in to the pre-purchase price on those cruises where the tax would be applicable.