Taxes on drinks

[Demonyte]

I believe it is only charged when in port within the USA but I could be wrong. I do know it is a law, but I also know for years the lines were not paying any attention. That has changed.

 

 

It's not. It's also charged in Bahamas (we paid taxes for drinks on GSC in January) and depending on itinerary, also within EU - just to name a few.

[Demonyte]

For what it's worth.....I asked a customer service rep (the one that the chat box pops up when you go on the NCL site.) I told her I got the UBP when I booked my cruise and I paid the 18% gratuity and service tax on it. I asked if there were additional taxes when we are in a port and she said no. I saved the screen shot of what she said but I don't know how to attach it. I hope that means no additional charges and I can drink in port without paying anything else.

 

 

Just that you know, those people are not customer service reps - they are your fellow cruisers that help people with simple questions, and apparently the person you talked to isn't that good with even those as you got incorrect information.

 

Also the screen shot is worth nothing to you, UBP terms clearly state that possible taxes are not included in the package.

[Deptacon]

This sales tax is also charged in many European ports as well...... it's not just a US thing.. averaging 5-7%

 

Europe has a VAT, not a sales tax. Its different.

[Deptacon]

Ok, I'm still not sure I get it. I have the unlimited beverage pkg on my upcoming cruise. I can order a drink up to a value of $15 right? Does the tax and gratuity get charged to my shipboard account or is it included in the value of the ubp? I haven't cruised NCL before so only know what other cruise lines do. Thanks.

 

It gets charged to your account. Its because you are not in international waters and the ship is still in the US. you need to pay sales tax on your drink.... just like you would anywhere else in miami.... Until the ship is 12 miles out, they will charge you a sales tax.

 

Like others have said, even if you drink heavy before a 7pm sailing from miami, you probably wont break 10 dollars.

[esm54687]

Europe has a VAT, not a sales tax. Its different.

 

Technically you are 100% correct but in the spirit of this thread, it is basically the same... I used a US term that would be easily understood and didn't dive into the economic details of Value Added Tax vs Sales Tax

[Lucinarei]

Just off the Gem's cruise to Florida and the Bahamas out of NY. We had the UBP (and booked before they changed it to add the 18% gratuity charge).

 

NY/Florida: The drinks we got while still in port in NY had tax, which we had to sign for. Whenever we were out of port, we didn't sign for drinks- that's how we knew there was no tax. It was something like $0.58 per drink (based on the price, of course). Same thing while docked in Florida.

 

Bahamas: When we got to our cabana at GSC, the person who led us to the cabana told us that there would be tax added to all drinks ordered in the Bahamas, but we never signed for a drink while there. When we were at Guest Services about an unrelated issue, we asked about the tax and were told that there was no tax for drinks at GSC if you had the UBP. We didn't get any drinks while docked in Nassau, but we did as we were sailing away and there was no tax charged on those drinks.

 

Overall, I think we paid less than $5 in taxes all told... but we didn't drink much while docked in port, so that may affect people differently if they choose to remain on the ship, etc.

[boatseller]

There really isn't anything to discuss or argue about this.

 

While in a tax jurisdiction, such as the State of Florida, YOU paying the liquor tax because YOU are in such jurisdiction. The Vendor is merely collecting and remitting the tax on your behalf. NCL is not 'charging' tax.

 

There is nothing the least bit shady about this and not an example of the mythical 'nickel and diming'.

[mickeychicky]

I believe all cruise lines charge it. If you are in a port that requires the cruise line to collect sales tax, they will do so. Usually it happens until you are in international waters.

 

 

RCL does NOT charge the sales tax in port or on their private island. I have been on three Royal Caribbean, all with alcohol packages, and have NEVER been charged tax on any drinks while in port waiting to leave.

 

I have been on two NCL cruises, again both with alcohol packages, and this most recent on the Epic out of Port Canaveral, I was actually charged sales tax on drinks in port AND also on their private island. On Norwegian Star out of Tampa I was NOT charged sales tax on my drinks in port.

 

It might not actually be "sales tax" they are charging and could be the VAT (value added tax), but they specifically called it sales tax when I questioned them. Just seems to be an NCL thing, but I have never been on Carnival so I don't know what they do. But RCL has never charged it in port.

[emcelh]

RCL does NOT charge the sales tax in port or on their private island. I have been on three Royal Caribbean, all with alcohol packages, and have NEVER been charged tax on any drinks while in port waiting to leave.

 

I have been on two NCL cruises, again both with alcohol packages, and this most recent on the Epic out of Port Canaveral, I was actually charged sales tax on drinks in port AND also on their private island. On Norwegian Star out of Tampa I was NOT charged sales tax on my drinks in port.

 

It might not actually be "sales tax" they are charging and could be the VAT (value added tax), but they specifically called it sales tax when I questioned them. Just seems to be an NCL thing, but I have never been on Carnival so I don't know what they do. But RCL has never charged it in port.

 

Interesting. We sailed from Tampa on the Jade in January and taxes were charged on the drinks we had prior to sail away.

[mickeychicky]

Interesting. We sailed from Tampa on the Jade in January and taxes were charged on the drinks we had prior to sail away.

 

We sailed in November of 2015, so don't know if something has changed. I did not have any onboard charges on that cruise. I still have my credit card charges from back then so I am positive.:confused:

[hawkeyetlse]

While in a tax jurisdiction, such as the State of Florida, YOU paying the liquor tax because YOU are in such jurisdiction. The Vendor is merely collecting and remitting the tax on your behalf. NCL is not 'charging' tax.

The question is whether the jurisdiction (let's say Florida) requires NCL to collect tax on the retail value of UBP orders (even though the actual amount of the purchase is $0). And if it does, how do other cruise lines get out of it?

 

I used to be pretty confident that NCL knew what they were doing, but recently a number of European customers have reported being told, after contacting NCL, that they were wrongly made to pay taxes on UBP orders, and they have received refunds. So I don't know what to think anymore.

[mickeychicky]

Just got off my 4th RCCL cruise and again, was NOT charged sales tax while drinking on the boat in Port Canaveral or on CocoCay. $0 stateroom charges other than Johnny Rockets.

 

So bottom line is: RCCL does NOT charge tax on drinks. NCL DOES.

[Tiggertastic]

Spain is a classic example. You order any drink whilst docked in Barcelona and whilst in Spanish waters there is vat to pay. Signs are on every bar and every bartender checked with us before serving. It was approx 10pm from a 7pm sailing when they stopped charging.

 

The sad thing is we checked what we'd been charged from 12 a boarding to stopping and we'd worked out based on the charges we'd had our ubp value no problem.

 

 

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[$hip$hape]

Spain is a classic example. You order any drink whilst docked in Barcelona and whilst in Spanish waters there is vat to pay. Signs are on every bar and every bartender checked with us before serving. It was approx 10pm from a 7pm sailing when they stopped charging.

 

The sad thing is we checked what we'd been charged from 12 a boarding to stopping and we'd worked out based on the charges we'd had our ubp value no problem.

Could you please re-word this last sentence?

(Me thinks I had too many, and cannot understand.):confused:

 

We will be leaving from Southampton. So I imagine, whether we drink on shore before the cruise, or are still in range of Southampton on the ship, we will be charged the same tax.(?)

Edited May 21, 2017 by $hip$hape

[LrgPizza]

Just got off my 4th RCCL cruise and again, was NOT charged sales tax while drinking on the boat in Port Canaveral or on CocoCay. $0 stateroom charges other than Johnny Rockets.

 

So bottom line is: RCCL does NOT charge tax on drinks. NCL DOES.

Sales tax is the law. RCCL pays it just like NCL does. NCL passes that cost to the customers, and maybe RCCL doesn't. Big whoop. I suppose one could sail RCCL to avoid paying maybe $3 in taxes for drinks consumed while in port then. That'll teach 'em!

[zqvol]

Cruise lines DO NOT have to charge tax on drinks purchased in any port. They do have to pay the tax. Some lines eat the cost, others pass it on to the consumer.

[Resonate]

Another big cruise line fraud. Been on 11 cruises, multiple out of America. MSC and RCCL never charge us. NCL did once, not the other.

 

Its all a swizz. Can pretty much guarantee NCL are not passing on the tax. They will ring it through next day.

 

Besides, 6% of a zero charged drink on a beverage package, is ZERO.

[zackarykeef]

I've noticed this seems to be a crapshoot. I know they should be charging sales tax while in the US, but it's been inconsistent. My last NCL cruise, I only had 3 charges of nominal ~$0.45 amounts--I definitely drank more than 3 drinks prior to leaving port. Once I never had any charges. My most recent cruise on RCCL was similar--only a few charges that were much less than the amount of drinks I had. I'm not sure what they do on their end, but it seems pretty variable from what I've experienced.

[TFLG]

I believe all cruise lines charge it. If you are in a port that requires the cruise line to collect sales tax, they will do so. Usually it happens until you are in international waters.

 

 

That's not always the case, so do, some don't. Leaving from LA on Carnival and NCL you are charged tax. Celebrity doesn't (at least not when you have the beverage package). I suspect they are absorbing that small cost to not inconvenience the passengers with silly slips of paper. Been on a lot of Celebrity and I've never been charged tax in any port.

[cml4958]

 

Its all a swizz. Can pretty much guarantee NCL are not passing on the tax.

 

I would say the State of Florida among others would disagree about them passing on the tax. When they undergo a sales and use tax audit, they will have to provide backup showing that tax was collected and remitted on these drinks or will have to pay the sales tax direct to the state.

[em-sk]

The Getaway, in December, had me sign a paper receipt while in the Miami port prior to the ship leaving after embarkation. This was tied to the state tax on drinks while in port. I had the UBP. I was not charged for the drink, however the 5 or 6% state tax on purchases showed up on my room charge for the week -- 50-70 cents per drink if I recall. Once we let port (not sure exactly how far from shore we were), they stopped making me sign anything and there was no state tax added on. Remember, the 18% you pay up front on the value of the UBP is for the gratuity/service charge given to the servers as part of their compensation package. The additional tax you pay on the drink while in a port that charges it, is a state (or perhaps local municipality) SALES TAX. It goes to the government. Not the employees or cruise line.

 

That is a silly tax. The cruise line charged you $0.00 for the drink. 5=6% local tax on $0.00 is $0.00.

[esm54687]

That is a silly tax. The cruise line charged you $0.00 for the drink. 5=6% local tax on $0.00 is $0.00.

Break out the pen and paper....... write to your elected officials to change the tax laws....... and don't stop in the US, write to foreign countries because there are some in Europe that will charge you a VAT on your $0.00 drink.

 

Also take a look at that "2 for 1" deal or "Free French Fries with a Sandwich" offer .. it will say something like "purchaser subject to tax on amount prior to offer being applied".......... you paid nothing for the "free meal" or "free fries" yet are taxed on it..

 

May be silly but it's the way it is

[beerman2]

That is a silly tax. The cruise line charged you $0.00 for the drink. 5=6% local tax on $0.00 is $0.00.

 

Don't audition and get on a game show and win .

That "free" car or trip you won will be taxed.

 

It's based on the retail value, just as the drinks are taxed on the cost of the drink.

 

Would it be fair and equitable for those that actually purchase their drinks to pay it, and those that get the package for "free" don't have to pay a tax???

 

Simple answer is NO, whether we agree or not.

[mrgoalie]

So... if have 3, 5 dollar drinks with the 3 UBP on the Bliss next month before it leaves LA at 6% tax.... my total charge would be 90 cents if they choose to ring it up same day? Just trying to understand.

Edited August 20, 2018 by mrgoalie
Spelling

[beerman2]

So... if have 3, 5 dollar drinks with the 3 UBP on the Bliss next month before it leaves LA at 6% tax.... my total charge would be 90 cents if they choose to ring it up same day? Just trying to understand.

That is correct, but you won't find a $5.00 drink. I'm guessing you used those numbers to make it easy.

 

You're on the right path though.