VAT on drinks package

If you do leave the EU VAT area then it is chargeable just when in port and it seems more random as to whether you pay it with the UBP.

If they want to follow the VAT rule then they would have to charge it while being Spanish waters - that is still part of the Spain. Now they charged only when we were docked.

Last year I did B2B from Spain to Italy and France and they didn't charge any VAT during the cruise. Have also done cruises with other cruise lines and they have never charged VAT.

I am starting to believe that there isn't any logic when they charge and when they won't charge.

Last year I did B2B from Spain to Italy and France and they didn't charge any VAT during the cruise.

Did you have the UBP?

Did you have the UBP?

Yes, always have drinks package.

Yes, always have drinks package.

In that case not charging the VAT is exactly as expected.

In that case not charging the VAT is exactly as expected.

What does not charging VAT has to do with where the ship is heading to next? Escecially when they charge it when ship is leaving EU area. I have studied taxing and can't understand their logic. :)

Could you quote some ruling where that is stated?

One thing which would make sense were that cruise line have made some deals with countries for not getting VAT taxed and they will cruise to country. And then Catalunya would be some exception which didn't accept that deal.

Another explanation could the that Europeans have gotten the UBP as a perk and haven't even paid service charges for it - so there isn't any base for actual VAT to be charged. However charging it when ship leaves to west breaks that explanation.

I am not in any way talking about what they should be doing. For all I know, NCL are doing it completely wrong.

All I am talking about is what they actually are doing, based on my experience and the numerous reports on there.

Other than a couple of cruises on the Star last year, they have consistently not charged any VAT on drinks consumed under the UBP when a cruise doesn't leave the EU VAT zone (I.e. When the VAT is charged on all purchases during the whole cruise outside the UBP).

When the cruise does leave the EU VAT zone then it seems more random whether they pass on any tax charged in port to UBP users.

I have absolutely no knowledge (or interest, when it comes to it) as to whether this is correct or not.

I think NCL should inform passengers before the cruise about their policies. Especially when they are now selling Premium All Inclusive cruises to European passengers where you could expect also such taxes being included. I am not jealous for guest relations trying to explain their rules for people.

I think NCL should inform passengers before the cruise about their policies.

I totally agree with you. But, to do that they would have to be consistent in their policy. From what I've pieced together, some people are charged and some are not and those who are charged aren't charged each time. It sounds more like there are some waiters and bartenders who either aren't understanding what they're supposed to be doing or aren't trained well. It's like the many reports where someone has the SDP and the waiter tells them they can have only one app, one entree, and one dessert, but the next waiter allows multiple apps and desserts.

I really doubt it's up to the bartender to charge you tax or not. It's something that happens automatically (or not) when they ring up your drink, and I would imagine that all the bars on board are synced up so that this happens consistently all over the ship, and stops happening at the same time all over the ship. But who knows? They may have a dumb system where someone in the main office has to call each bar/restaurant to tell them "turn it on now, 8.75%" and then "turn it off now". But when they actually serve you a drink, I don't think the computer gives them a lot of choices about how to ring it up. Otherwise we would be getting lots of posts like "I took care of my favorite barman and there were no taxes on my (extra strong, Ultra Premium) drinks, while everyone around me was paying 10%".

I was referencing the reports I've read where people have said they were charged by one waiter or bartender but not by another. I agree that makes no sense and that everything should be synced, but who knows at this point? There doesn't seem to be a lot of consistency in the way NCL does a number of things.

I understand. I would be interested to know if people sat at the same bar, and got charged tax in port, and then no tax after sailaway, and then tax again, in the same evening, at the same bar.

Personally, I think that individual members of the bar staff are just as much in the dark as all of us are about local tax regulations. They evidently receive instructions to warn passengers about possible taxes, but I these are not necessarily based on real-time knowledge about where the ship is and what the tax laws are in the ship's current jurisdiction.

I understand. I would be interested to know if people sat at the same bar, and got charged tax in port, and then no tax after sailaway, and then tax again, in the same evening, at the same bar.

 

Personally, I think that individual members of the bar staff are just as much in the dark as all of us are about local tax regulations. They evidently receive instructions to warn passengers about possible taxes, but I these are not necessarily based on real-time knowledge about where the ship is and what the tax laws are in the ship's current jurisdiction.

I suspect that's about the right picture. LOL.

As a matter of interest. Just off Epic western med and no vat charged on any drinks from UBP. Just handed over cards. No signing. Vat on all gift shop purchased however but I expected that.

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As a matter of interest. Just off Epic western med and no vat charged on any drinks from UBP. Just handed over cards. No signing. Vat on all gift shop purchased however but I expected that.

 

 

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Thanks for info. That's how it should be with ubp.

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We were on the Epic western Mediterranean about a month ago (Barcelona to Italy, France, Palma). I did not get the drink package and ordered 4 (alcoholic) drinks during the trip. I remember at one dinner being told quite specifically that there would be an extra charge on the drink because we were in port and I assume that was the VAT. I do not remember being charged the VAT for any of the other drinks (when we were at sea). It sounds like maybe they should/ do charge for the duration of the trip, but as someone pointed out, maybe being charged or not charged is more about the person serving you knowing when to charge it.