VAT on drinks package

[KeithJenner]

My friend just mentioned that they went to Guernsey, which is why the British Isles cruise is not charged VAT all through.

 

Therefore his cruise is under the same rules as the Norway one (as Norway isn't in the EU) and no VAT was charged. That is all as I would expect.

[ExpatBride]

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.

 

Thanks for posting back :)

[Quilting_Cruiser]

It was a Canary Islands & Morocco cruise, right? That's why there was no VAT. People doing the Epic's current Western Med itinerary will have to pay Spanish VAT if they pay for their drinks as you did.

 

Yes, it was. That explains it then. There was some confusion at the time and I went into it believing I'd be paying VAT as that's what NCL told me when I booked (I booked directly with them) so it was a surprise to me when I wasn't.

 

Thanks, KeithJenner for your explanations of what's going on. There will still be confusion, I'm sure, but not for want of Europeans to explain it. LOL.

[Quilting_Cruiser]

I'm on a Western Med cruise this fall, embarking in Rome. So, I take it from what's been said here that I'll be charged VAT on purchases but not on drinks since I have UBP for that cruise.

[KeithJenner]

I'm on a Western Med cruise this fall, embarking in Rome. So, I take it from what's been said here that I'll be charged VAT on purchases but not on drinks since I have UBP for that cruise.

 

 

 

Yes, that should be the case.

[Quilting_Cruiser]

Yes, that should be the case.

 

 

Thanks, Keith.

[JezzaC]

Just did cruise on Epic from Barcelona on April and had UBP. When we were dock in the port VAT was charged for the drinks. However after embarkation in the buffet waiter forgot it, so they didn't charge me since I didn't sign anything. Later on if the person selling the drink remembered it - I had to sign receipt with the full price but they circled the VAT part of it and only it was charged from my onboard account.

 

As comparison on last summer I did 2 weeks B2B on Western Med on Epic and was never charged to VAT. So seems that there isn't any logic for that - they enforce it and then forget it.

[hawkeyetlse]

It's true, even for cruises that leave the EU VAT area, you may still be charged VAT when the ship is in Spanish waters. And they can charge your account even if you don't sign anything, and even if you don't receive any paper ticket. Keep an eye on your account, that's general advice that's good in all situations

[sf3945]

I sailed from Barcelona in April, fifth time out that port with NCL and it was the first time we were charged sales tax !! There were signs on every bar !

[killarneylady]

Did you have the UBP?

[TrumpyNor]

If your cruise itinerary only contains ports in EU member countries, then a 10% VAT on drinks is applied (and 21% VAT on stuff from the stores on board - so beware...!). The 10% VAT on drinks is however only for drinks that are PURCHASED ON BOARD and paid for on board, not for any drink packages that are purchased in advance (or received as a promotional perk in advance). At least this is the case for cruises that starts or ends in Spain or Italy. On these cruises there is also no taxfree alcohol or cigarettes sold on board, for the same reason - as the ship stays within EU the entire cruise. Personally I find the 21% VAT on other stuff in the shops on board to be much more "serious" than the 10% that is added on "individually" purchased drinks (on our last cruise that took place a few weeks ago, there was a situation where the jewelry shop on board had a huge "designer watch sale" with 10% off the regular price - but then you had to pay 20% VAT on the discounted price, so purchasing the watch would at that sale would actually cost you more than the "normal" price...

[sf3945]

Did you have the UBP?

Yes we did,

[killarneylady]

If your cruise itinerary only contains ports in EU member countries, then a 10% VAT on drinks is applied (and 21% VAT on stuff from the stores on board - so beware...!). The 10% VAT on drinks is however only for drinks that are PURCHASED ON BOARD and paid for on board, not for any drink packages that are purchased in advance (or received as a promotional perk in advance). At least this is the case for cruises that starts or ends in Spain or Italy. On these cruises there is also no taxfree alcohol or cigarettes sold on board, for the same reason - as the ship stays within EU the entire cruise. Personally I find the 21% VAT on other stuff in the shops on board to be much more "serious" than the 10% that is added on "individually" purchased drinks (on our last cruise that took place a few weeks ago, there was a situation where the jewelry shop on board had a huge "designer watch sale" with 10% off the regular price - but then you had to pay 20% VAT on the discounted price, so purchasing the watch would at that sale would actually cost you more than the "normal" price...

Thanks,excellent post.

[JezzaC]

If your cruise itinerary only contains ports in EU member countries, then a 10% VAT on drinks is applied (and 21% VAT on stuff from the stores on board - so beware...!). The 10% VAT on drinks is however only for drinks that are PURCHASED ON BOARD and paid for on board, not for any drink packages that are purchased in advance (or received as a promotional perk in advance). At least this is the case for cruises that starts or ends in Spain or Italy. On these cruises there is also no taxfree alcohol or cigarettes sold on board, for the same reason - as the ship stays within EU the entire cruise. Personally I find the 21% VAT on other stuff in the shops on board to be much more "serious" than the 10% that is added on "individually" purchased drinks (on our last cruise that took place a few weeks ago, there was a situation where the jewelry shop on board had a huge "designer watch sale" with 10% off the regular price - but then you had to pay 20% VAT on the discounted price, so purchasing the watch would at that sale would actually cost you more than the "normal" price...

 

Not true - on April they charged VAT part for the drinks while on port in Barcelona - even though I had free UBP as a perk.

[killarneylady]

Not true - on April they charged VAT part for the drinks while on port in Barcelona - even though I had free UBP as a perk.

Darn. Lots of people seem to have different experiences. I thought I was sorted, having the UBP and paying the service charge and especially after. TrumpyNors reply.

Given that the itinerary is a regular one , NCL really should have it clearly stated to passengers what the position is rather than us trying to find out from each other. It's only a small amount I know, but these little unanticipated things leave an impression. If it has to be charged that's fine but make it clear NCL..

[hawkeyetlse]

Darn. Lots of people seem to have different experiences. I thought I was sorted, having the UBP and paying the service charge and especially after. TrumpyNors reply.

Did you book through NCL Miami? Otherwise I am wondering why you had to pay the 18% service charge.

 

I believe JezzaC was on the first 2017 sailing out of Barcelona, going to Morocco/Canary Islands. For cruises that leave the EU, things may in fact be more complex than saying that these cruises are simply "tax-free". It could be that they only become tax-free when the ship actually leaves the EU VAT area, and up until that point, tax is collected according to obscure rules that don't apply in other situations.

 

Or, NCL simply got things wrong for the first European sailing of the season. Or maybe a little bit of both.

 

In any case, I have never heard of anyone with the UBP being charged Spanish VAT throughout the entire cruise (on EU-only itineraries). For many people, that would add up to hundreds of dollars, and they would certainly dispute it. I'm pretty sure that won't happen to you. At the worst, you may be charged VAT while the ship is in port (hopefully only the embarkation port, possibly in all ports). I think you should dispute it even in that case, but there will be much less money at stake.

 

Frankly I don't think you have anything to worry about, because if they were charging tax on UBP orders on the Western Med itinerary, we would have heard about it many many times on this board over the past month. But if it will help you avoid negative feelings, expect to be charged VAT in port and then be pleasantly surprised when it doesn't happen. :)

[killarneylady]

Did you book through NCL Miami? Otherwise I am wondering why you had to pay the 18% service charge.

 

I believe JezzaC was on the first 2017 sailing out of Barcelona, going to Morocco/Canary Islands. For cruises that leave the EU, things may in fact be more complex than saying that these cruises are simply "tax-free". It could be that they only become tax-free when the ship actually leaves the EU VAT area, and up until that point, tax is collected according to obscure rules that don't apply in other situations.

 

Or, NCL simply got things wrong for the first European sailing of the season. Or maybe a little bit of both.

 

In any case, I have never heard of anyone with the UBP being charged Spanish VAT throughout the entire cruise (on EU-only itineraries). For many people, that would add up to hundreds of dollars, and they would certainly dispute it. I'm pretty sure that won't happen to you. At the worst, you may be charged VAT while the ship is in port (hopefully only the embarkation port, possibly in all ports). I think you should dispute it even in that case, but there will be much less money at stake.

 

Frankly I don't think you have anything to worry about, because if they were charging tax on UBP orders on the Western Med itinerary, we would have heard about it many many times on this board over the past month. But if it will help you avoid negative feelings, expect to be charged VAT in port and then be pleasantly surprised when it doesn't happen. :)

Thanks for that ! Good advice.

( I did book through US agent although living in Europe)

[KeithJenner]

Not true - on April they charged VAT part for the drinks while on port in Barcelona - even though I had free UBP as a perk.

 

 

 

We are getting itineraries mixed up again. The post you quoted is referring to cruises that don't leave the EU. From your signature it seems you went to the Canary Isles, which is a different situation.

 

In a cruise like yours, tax should only be charged when it port, usually just Barcelona on your itinerary, but I've also seen it charged in Malaga (when it was also an embarkation port). In those circumstances it may well be that the tax is charged when you have the UBP. Reports on that one (and my experience) is quite random.

[JezzaC]

We are getting itineraries mixed up again. The post you quoted is referring to cruises that don't leave the EU. From your signature it seems you went to the Canary Isles, which is a different situation.

 

In a cruise like yours, tax should only be charged when it port, usually just Barcelona on your itinerary, but I've also seen it charged in Malaga (when it was also an embarkation port). In those circumstances it may well be that the tax is charged when you have the UBP. Reports on that one (and my experience) is quite random.

 

To my undestanding it is irrelevant if the ship leaves EU or not. I think the key here is Spain - they are wanting to collect 10% VAT. NCL policy is also very random - I had several drinks when we still on port on Barcelona and some times I had to sign the slip and sometimes not. The signed ones they charged me and rest they didn't.

 

I don't mind the VAT thing but I think NCL should state clearly to passengers before the cruise - when VAT is charged and when not.

[KeithJenner]

To my undestanding it is irrelevant if the ship leaves EU or not. I think the key here is Spain

 

 

It is very relevant. At least it is relevant if the ship leaves the EU VAT area. That is what this discussion is basically about.

 

If your cruise doesn't leave the EU VAT area, as on the Epic Western Med route, the VAT is charged on purchases for the whole cruise. For the last couple of years, NCL have somehow avoided charging it on drinks consumed using the UBP.

 

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.

[FiggyWig]

Sorry...but UBP...is what ?

 

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[KeithJenner]

Ultimate beverage package

[Quilting_Cruiser]

It is very relevant. At least it is relevant if the ship leaves the EU VAT area. That is what this discussion is basically about.

 

If your cruise doesn't leave the EU VAT area, as on the Epic Western Med route, the VAT is charged on purchases for the whole cruise. For the last couple of years, NCL have somehow avoided charging it on drinks consumed using the UBP.

 

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.

 

 

Keith, is that for all cruises that don't leave the EU VAT area or for those that board in Barcelona? Is it the same for the passengers who board in Rome?

[KeithJenner]

Keith, is that for all cruises that don't leave the EU VAT area or for those that board in Barcelona? Is it the same for the passengers who board in Rome?

 

 

 

Ive never boarded in Rome, but my understanding is that the VAT is charged the same on that itinerary whether you board in Barcelona or Rome.

 

It certainly isn't just a Barcelona thing though. I've also been charged it on a Venice round trip, and if my memory serves me correctly also on the Hamburg to Southampton short cruise.

[Quilting_Cruiser]

Ive never boarded in Rome, but my understanding is that the VAT is charged the same on that itinerary whether you board in Barcelona or Rome.

 

It certainly isn't just a Barcelona thing though. I've also been charged it on a Venice round trip, and if my memory serves me correctly also on the Hamburg to Southampton short cruise.

 

 

Thanks, Keith. I guess I'll find out in Sept. I did a RT out of Venice, did not have the UBP and was never charged VAT. Which, I suppose, is consistent with the inconsistency. :cool: