Italian cruises-wine prices adds 18% gratuities+22%vat

Most of us realise that Oceania cruises have a high mark-up price for the bottles of wine. We just have to grin and bear it!

On top of that, there is the "obligatory" 18% gratuities. We still just have to grin and bear it!

Our next cruise on Oceania will be on the Riviera sailing from Venice, Aug 31st, stopping alternatively at Croatian ports and Italian ports, before sailing onwards to Greece .

We learnt that ships sailing in Italian waters would have to charge an additional 22% VAT (Value Added Tax) for goods sold on board including wine, to their prices.

That means, a bottle of wine on our cruise could incur 18% gratuity PLUS 22% Value Added Tax. A bottle of wine advertised as $50 may end up to be $70.

What is confusing is, on our cruise as the ship alternates between sailing in Croatian waters and Italian waters, we are not sure during which sailing we will be in Italian waters and when we will be in Croatian waters.

We realise there are many experienced cruisers on CruiseCritic, and we wondered if they may be able to give us some advice how to avoid paying the extra 22% VAT if possible?

1) buy the beverage package before you you cruise (drink the wine by the glass)

2) buy bottles of wine ashore & drink in your cabin

3) don't buy any drinks on the ship

I believe that if all ports are within the EU economic area (EEA), then all purchases onboard are subject to VAT. If there is one port call outside the EEA, then VAT is not charged.

I believe that if all ports are within the EU economic area (EEA), then all purchases onboard are subject to VAT. If there is one port call outside the EEA, then VAT is not charged.

Has Spain reverted to doing it this way?

I imagine that the concern of the OP was that Italy will take a page from Spain's book.

Has Spain reverted to doing it this way?

I imagine that the concern of the OP was that Italy will take a page from Spain's book.

I believe Spain has done it this way all along, but that Spain has a higher VAT than most countries in the EU.

Most of us realise that Oceania cruises have a high mark-up price for the bottles of wine. We just have to grin and bear it!

 

On top of that, there is the "obligatory" 18% gratuities. We still just have to grin and bear it!

 

Our next cruise on Oceania will be on the Riviera sailing from Venice, Aug 31st, stopping alternatively at Croatian ports and Italian ports, before sailing onwards to Greece .

 

We learnt that ships sailing in Italian waters would have to charge an additional 22% VAT (Value Added Tax) for goods sold on board including wine, to their prices.

 

That means, a bottle of wine on our cruise could incur 18% gratuity PLUS 22% Value Added Tax. A bottle of wine advertised as $50 may end up to be $70.

 

What is confusing is, on our cruise as the ship alternates between sailing in Croatian waters and Italian waters, we are not sure during which sailing we will be in Italian waters and when we will be in Croatian waters.

 

We realise there are many experienced cruisers on CruiseCritic, and we wondered if they may be able to give us some advice how to avoid paying the extra 22% VAT if possible?

This cruise stops in Montenegro which is not in the EU :)

This cruise stops in Montenegro which is not in the EU :)

I was just going to post this ... But I wasn't 100% sure.

Next question...some cruises have VAT until they leave the offending countries waters because of a non EU port on the itinerary. Might this happen?

I know we had VAT on our BCN to Rome, which I thought would stop once we left Spanish waters because the itinerary included Monaco. But, we had it the whole way.

I was just going to post this ... But I wasn't 100% sure.

 

Next question...some cruises have VAT until they leave the offending countries waters because of a non EU port on the itinerary. Might this happen?

 

I know we had VAT on our BCN to Rome, which I thought would stop once we left Spanish waters because the itinerary included Monaco. But, we had it the whole way.

Had to do some searching, but France and Monaco are bound by the Franco-Monegasque Treaty, and Monaco pays the same VAT as France, even though it is not part of the EEC.

I believe that if all ports are within the EU economic area (EEA), then all purchases onboard are subject to VAT. If there is one port call outside the EEA, then VAT is not charged.

Curiously enough, that is not true.

At the moment, if I am correct, on Spain and Italy imposes those rules when ships sail in their waters.

Other countries like France, the UK, Germany, etc do not impose that on ships eventhough they have VAT for sales of goods and services on land.

This cruise stops in Montenegro which is not in the EU :)

This cruise does not end in Montenegro, it terminates in Pireus (port for Athens), Greece. And Greece is in the EU, at least, it still is at the moment!

It may, or may not stopover in Montenegro, but it does not terminate there.

In any case, the only countries in the EU where ships are charged VAT in their waters are Italy and Spain. Our cruise stops in Croatia and Greece, but I do not believe they charge VAT for wines bought on board ships in their waters.

Had to do some searching, but France and Monaco are bound by the Franco-Monegasque Treaty, and Monaco pays the same VAT as France, even though it is not part of the EEC.

As I may have mentioned earlier, countries like France may charge VAT on land, but not for ships in their waters. As far as I know, the only two countries that charge VAT for wine/purchases/services in their waters are Italy and Spain.

It seems like a number of people from outside the European Union, seem to get the idea that just because there is Value Added Tax in countries in the European Union, they would assume that VAT would be charged on ships which are in their waters. This is not necessarily the case. The exception being Italy and Spain.

This extra VAT charge does not just go for wine, but other purchases as well. You may need to check with your ship to see if it includes services like Spa treatments, etc.

If the price is higher than you wish to pay, then drink the included offerings or buy a package.

I was just going to post this ... But I wasn't 100% sure.

 

Next question...some cruises have VAT until they leave the offending countries waters because of a non EU port on the itinerary. Might this happen?

 

I know we had VAT on our BCN to Rome, which I thought would stop once we left Spanish waters because the itinerary included Monaco. But, we had it the whole way.

Really? If I remember correctly, we were charged VAT when the ship left Barcelona, but when it sailed from French ports (Marseilles), there was no VAT.

I think we may need to clarify this with Oceania.

Actually, I called Oceania but the person there could not give me the full answer, and he suggested I email adminuk@oceaniacruises.com

You are correct that only cruises beginning in Spain or Italy charge the VAT, but if there is no non-EU port call, then the VAT applies for the entire cruise. If there is a non-EU port call, then no VAT applies at all.

Really? If I remember correctly, we were charged VAT when the ship left Barcelona, but when it sailed from French ports (Marseilles), there was no VAT.

 

I think we may need to clarify this with Oceania.

 

Actually, I called Oceania but the person there could not give me the full answer, and he suggested I email adminuk@oceaniacruises.com

This is only a guess...but perhaps Spain is playing the trump card now with the treaty that the EU has with Monaco ( as cited by Chengkp75). Spain has been very aggressive on these taxes. Italy has followed Spain.

But as stated in a previous post...if it concerns you, the drink packages offered by O are now a bargain.

You are correct that only cruises beginning in Spain or Italy charge the VAT, but if there is no non-EU port call, then the VAT applies for the entire cruise. If there is a non-EU port call, then no VAT applies at all.

Is that right? That's interesting. Thanks for the information.

This is only a guess...but perhaps Spain is playing the trump card now with the treaty that the EU has with Monaco ( as cited by Chengkp75). Spain has been very aggressive on these taxes. Italy has followed Spain.

 

But as stated in a previous post...if it concerns you, the drink packages offered by O are now a bargain.

Just another way to rip us off.

I would just boycott cruises going to Spain, Italy & Brazil that way you will not be ripped off by these Countries trying to get their pound of flesh

It is ridiculous the cruise lines get their supplies elsewhere so why do they need to pay extra tax ..if they buy the goods in those Countries they will pay the taxes then

That would be like me going to another Country & having them tax my belonging that I purchased at home :eek:

Buy great local wines and pay the $25 corkage fee if you drink it outside of your cabin.

Mary

This cruise does not end in Montenegro, it terminates in Pireus (port for Athens), Greece. And Greece is in the EU, at least, it still is at the moment!

 

It may, or may not stopover in Montenegro, but it does not terminate there.

 

In any case, the only countries in the EU where ships are charged VAT in their waters are Italy and Spain. Our cruise stops in Croatia and Greece, but I do not believe they charge VAT for wines bought on board ships in their waters.

I'm aware that this cruise does not terminate in Montenegro as I'll be travelling on it.

Just pointing out that it includes a Non EU port and therefore the extra VAT should not be an issue.

You forgot our call in Slovenia :)

Just another way to rip us off.

Hi

just who is ripping who off?

VAT is the law in EC countries bound by the Shengen agreement. Just as there's a city tax and or a state tax in the USA

Some EC countries choose to pass it on to ships leaving their ports or sailing in their waters.

I do believe that there's a form (from the front desk) that if you keep all your receipts for VAT charged ( you will find that it's also charged on purchases ashore) that should you choose you can fill in and claim the tax back.

http://ec.europa.eu/taxation_customs/common/travellers/leave_eu/index_en.htm

Here's a helpful link

regards

Josie

This is only a guess...but perhaps Spain is playing the trump card now with the treaty that the EU has with Monaco ( as cited by Chengkp75). Spain has been very aggressive on these taxes. Italy has followed Spain.

 

But as stated in a previous post...if it concerns you, the drink packages offered by O are now a bargain.

Don't you STILL have to pay the extra 22%VAT even if you opt for the drinks packages? I have a feeling you may still have to.

It is like buying any goods and services when your ship is in Italian waters, when you would incur paying VAT. A drinks package would be put under "goods or service" , wouldn't it? What do you think?

I may write to Oceania at adminuk@oceaniacruises.com and find out from them. Hope they can tell me.

If the price is higher than you wish to pay, then drink the included offerings or buy a package.

If you buy a drinks package, the cost of the package would still incur 22% VAT, wouldn't it, as the ship start sail from Venice, Italy?

Some folks here seem to think that by buying a drinks package, you may not have to pay the 22% VAT, I am not too sure. They may be in for a surprise when their bill comes at the end of the cruise!

I may write to adminuk@oceaniacruises.com to find out. Hope they can tell me.

Buy great local wines and pay the $25 corkage fee if you drink it outside of your cabin.

 

Mary

You may still have to pay the 22%VAT for your corkage fee. And does the corkage fee not incur an extra 18% gratuity on top of that?

So that suggestion may not be all that helpful but thanks for helping all the same.

I'm aware that this cruise does not terminate in Montenegro as I'll be travelling on it.

Just pointing out that it includes a Non EU port and therefore the extra VAT should not be an issue.

You forgot our call in Slovenia :)

Thanks . You are right. I forgot that we are going to Slovenia too.

You said that the cruise includes a non EU port and the extra VAT should not be an issue. I am not very clear about the VAT not being an issue.

When we sail from Venice, which is in Italian waters, would the VAT not be charged when we are there? Or when we are sailing to/from in Ravenna or Bari both being in Italy?

It would be nice if Oceania Cruises would make it clear and explain to passengers before they start the cruise on where we stand with regards to the VAT issue on this cruise, as this would not just affect wine prices, but all prices for services and goods purchased on board. They send their pre-cruise booklet, with tags, etc, before the cruise, it would be helpful if they include it there (it is not there, is it? If so, I could not find it).