VAT added to items on certain cruises

[fantasy51]

I don't know if this subject has been brought up before. It certainly came as a shock to me.

 

I was on QV for 2 weeks. The first week was Istanbul to Civitavecchia. The second week was Civitavecchia to Civitavecchia. Because that second week was wholly within the EU, purchases were subject to IVA at 22%. This included the photograph we had taken in week 1 but did not buy until week 2. I gather that people buying jewellery were not happy at all because of the added cost. The bookshop was closed for the second week. It was not possible to buy cigarettes or alcohol to take back to the UK. Our bottles of wine did not increase in price in week 2, so it seems that drinks were not included in this. (I apologise for not keeping the piece of paper that explained it.)

 

I suspect this legislation came in with too little warning for cruise companies to change their itineraries, but I hope future cruises endeavour to include a non-EU port in order to keep us all happy.

 

https://ask.cunard.com/help/cunard/on-shore/iva_tax

[BlueRiband]

I'm not "shocked" as many countries see these taxes on cruise ships as revenue opportunities. Too bad for them that they don't care when these taxes piss off passengers, who complain to the cruise lines, who then re-evaluate their itineraries. Thus, instead of getting VAT they lose the shoreside business when ships decide to curtail their calls to these countries.

 

This from ask.cunard.com:

 

Will I be charged VAT and TAX?

Passengers are advised that on intra EU cruises (when all of the ports you visit are inside the EU) government regulations prohibit the sale of duty free items. This means that UK VAT at the appropriate rate will be added to goods purchased in the shops and boutiques. Prices displayed in the gift shop are exclusive of UK VAT. The UK VAT charged will be identified on your receipt. For example, if you are on a Round Britain cruise that only visits England, Ireland Scotland and Wales, duty free items will not be available. If your cruise takes in another port (such as St Peter Port or Gibraltar) then duty free items will be available and UK VAT will not be applied.

 

 

Can I claim VAT on duty free shopping?

You can speak to the gift shop operator on board as they manage the retail export scheme for goods purchased on board by International residents during Intra-EU cruises (non British citizens). On an international cruise, tax will not be added on board and there is no tax to claim back. Purchased goods in an intermediate EU port where local tax is charged passengers needs to discuss that countries claim procedures before they leave that country. You cannot claim in the UK for tax paid in another country.

 

I'm sure neither Cunard nor any other line likes this as duty free sales are part of their on board revenue.

Edited August 18, 2015 by BlueRiband

[Host Hattie]

It's been the case for a few years at least, it's why companies often include a non-EU stop if they can - Gibraltar, Kotor or a stop in Turkey. Dubrovnik used to do until Croatia joined the EU.

 

The book shop closure seems odd though, I can't say I've ever noticed that before. Is it because there is no VAT on books in the UK but there is in the EU ?

[Mid-Atlantic Ridge]

The Southampton - Hamburg - Southampton cruises fall into this category. On the outbound leg UK VAT is charged on gift shop items and retail items bought in the photo shop and in the spa. The book shop charges VAT on items other than books.

 

On the inbound leg from Hamburg, German VAT is charged on all items as above. The book shop is closed on this leg, I suspect because German VAT would be payable on books though it's not clear to me why they could not just add VAT on like the other items.

 

I'm also uncertain how they organise VAT requirements for guests who are travelling between NY and Hamburg or vice versa. Maybe someone will know and could advise from experience, do the on board systems identify them and ensure they exempted from VAT?

 

M-AR