VAT on drinks package

I thought I had it straight , that once you paid the 18% service charge on drinks package there was no vat on each drink. Just confused by reading a recent review which said that both 18% and vat applicable. Which is it does anyone know?

You pay the 18% on the drink package, but if you happen to be in, say New York port, you pay taxes on the value of the drink. I think it is just US ports...

I forgot to mention I'm embarking I Barcelona. Western med.

You pay the 18% on the drink package, but if you happen to be in, say New York port, you pay taxes on the value of the drink. I think it is just US ports...

The VAT has nothing to do with the US.

OP reports are that some countries impose the VAT. The 18% is a service charge in lieu of a gratuity.

There is a 10% VAT charged on drinks (and other purchases - some at a different rate). On the Epic Western Med itinerary that is charged for the entire cruise, not just whilst in port.

That is nothing to do with the service charge, which is a totally different thing.

However, for the past couple of years, the VAT hasn't been being charged on drinks that you get with the UBP. It used to be charged (based on the list price of the drinks you consume), but that changed a couple of years ago.

There have been the occasional reports of some cruises where the VAT was charged under these circumstances. The Star last year is an example, for example, when it went through the Med between the Baltics and Asia.

Unless something has changed recently with this itinerary then you shouldn't be charged.

Thanks, Hopefully they won't charge it on UBP so.

I know it is charged in US ports and also on Great Stirrup Cay, it was minimal. I cruise on the Star to the Adriatic this weekend... will find out more from that cruise soon!

I cruised on the Epic out of Barcelona last year and did not have UBP. I was charged the price of the drink and the 18% gratuity, but no VAT. I don't drink much, but has probably one glass a wine a day and an occasional cocktail--never any VAT.

I know it is charged in US ports and also on Great Stirrup Cay, it was minimal. I cruise on the Star to the Adriatic this weekend... will find out more from that cruise soon!

I don't believe VAT would have been charged in any U.S. ports...

I cruised on the Epic out of Barcelona last year and did not have UBP. I was charged the price of the drink and the 18% gratuity, but no VAT. I don't drink much, but has probably one glass a wine a day and an occasional cocktail--never any VAT.

VAT is a tax in Europe.

The 18% gratuity is a the, well.. gratuity.

Two different things.

People doing the Epic's current Western Med itinerary will have to pay Spanish VAT if they pay for their drinks as you did.

Not necessarily. I sailed the Western Med on the Epic from Barcelona and didn't pay any VAT even though I thought going into it that I would.

I've sailed 5 times from European ports and never paid any VAT.

3 without and 2 with UBP

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Just to clarify, because it looks like this is still causing confusion.

When I say the Epic Western Med itinerary, I mean the round trip from Barcelona or Civitavecchia, which also includes Naples, Livorno and some French ports or Majorca.

This is the route that the Epic does all through the Summer, with some rare exceptions like when it went to dry dock.

I don't mean cruises that people did during winter 2015/16 when the Epic strayed in Europe for the winter and did a variety of cruises, most of which left the EU VAT area, such as Canary Island cruises (which is what I believe that Quilting Cruiser and Expat Bride may have done).

Unless things have changed (I last did this itinerary this time last year) then they will charge VAT during the whole cruise (but not on drinks consumed under the UBP), regardless of people's experiences on different itineraries).

For the record, the only other itinerary that this used to regularly be the case was one of the two routes that the Jade used to do alternatively during the Summer, which was basically a Greek Isles cruise. I'm not sure of the current situation now with those cruises (done on the Star now), as the itineraries seem to have changed quite a bit).

I've sailed 5 times from European ports and never paid any VAT.

 

3 without and 2 with UBP

 

 

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That's probably a function of NCL not knowing when to charge VAT, rather than VAT not being applicable.

When I say the Epic Western Med itinerary, I mean the round trip from Barcelona or Civitavecchia, which also includes Naples, Livorno and some French ports or Majorca.

That's the one I did... R/T from Barcelona, a bunch of Italian ports and Majorca.

That's the one I did... R/T from Barcelona, a bunch of Italian ports and Majorca.

Did you have the UBP?

If not then your experience would seem to have been very unusual.

Did you have the UBP?

I never sail without it :D

I never sail without it :D

OK, that is as expected then. I assumed you didn't have it as the post you quoted earlier was talking about people who are paying for their drinks.

To clarify further.

If you are on one of the itineraries where VAT is chargeable, the most current position (as it has been for about 2 years now) is that you will pay the VAT if you are purchasing drinks individually (don't have the UBP).

If you have the UBP then you don't pay the VAT on the individual drinks you get. It is however paid (along with the 18% gratuity) on any additional charges, for example if you get a drink costing more than $15 and pay the difference.

To clarify further.

 

If you are on one of the itineraries where VAT is chargeable, the most current position (as it has been for about 2 years now) is that you will pay the VAT if you are purchasing drinks individually (don't have the UBP).

 

If you have the UBP then you don't pay the VAT on the individual drinks you get. It is however paid (along with the 18% gratuity) on any additional charges, for example if you get a drink costing more than $15 and pay the difference.

Ah, OK. My TA told me that I would need to pay VAT on the price of any drinks while we were docked in Barcelona, even with the UBP. So I was fully expecting to see VAT charges on my account but they never showed up. Your explanation makes a lot more sense!

I'll be Southhampton in a couple of weeks and was expecting to pay the VAT there, too. But now I guess I won't have to!

I'll be Southhampton in a couple of weeks and was expecting to pay the VAT there, too. But now I guess I won't have to!

I can't say for sure, but probably not.

I assume you are going to Norway or Iceland. That in itself probably means that VAT would only be charged whilst in port (I'm not sure about Norway actually, and my internet isn't good enough to check at the moment).

VAT should be charged in Southampton, from my experience, but my guess is that it won't be charged on the UBP.

I have a friend currently on the Jade. I've just asked them what their experience has been. I imagine theirs is one where VAT was charged all cruise as it was British Isles.

I have a friend currently on the Jade. I've just asked them what their experience has been. I imagine theirs is one where VAT was charged all cruise as it was British Isles.

I'd be curious to see what they say... I'll be on the Jade from Sunday! It's a fjords cruise with a stop in Southhampton. We sailed the fjords on the Star a couple of years ago with the UBP and didn't have to pay VAT. I hope our winning streak continues :cool:

I'd be curious to see what they say... I'll be on the Jade from Sunday! It's a fjords cruise with a stop in Southhampton. We sailed the fjords on the Star a couple of years ago with the UBP and didn't have to pay VAT. I hope our winning streak continues :cool:

He's just replied to say that he hasn't paid any VAT on drinks, which is as I'd expect, but also that he wasn't charged on another purchase, which surprises me.

Basically, it does seem that in Europe at the moment, it is extremely rare for tax to be charged anywhere if you have the UBP.

I will be very surprised if you are charged any. I'm not expecting it when I sail on the Jade later this year.

I'll be Southhampton in a couple of weeks and was expecting to pay the VAT there, too. But now I guess I won't have to!

I have it in writing from NCL that they won't be passing the VAT that Her Majesty's Revenue and Customs charge them, onto us. They will be absorbing the cost into the cruise fare, UBP, etc.