Is VAT added on cruise ships.

On a recent Celebrity cruise ship we were charged VAT on everything we purchased from drinks, speciality dining, shore excursions and on everything purchased in the onboard shops. We have been on many Mediterranean cruise and this is the first time this has occured.

Does this occur on FRED OLSEN ships operating in the Mediterranean ?

It depends on the port of call. I am sure that if you are in or near Spain, there is an 8% VAT charge, don't know why, but other than that, I don't believe there is VAT on onboard purchases.

The answer is complicated.

If the ship is docked at a Spanish port then according to Apnish rules they should charge VAT.

If a cruise begins and ends at a Spanish port then VAT should be charged throughout the cruise, unless there is a call at a non-EU port.

So for most FO cruises this is only an issue when actually docked at a Spanish port and on those occasions if I recall correctly they tend to keep the port shop closed to avoid the problem.

This sounds very odd to me.

In order to charge VAT the vendor must supply an invoice showing the amount of VAT charged and their VAT registration number.

How does VAT work in the case of FO £10/day drinks scheme?

I have never been on a cruise where VAT has been mentioned.

This sounds very odd to me.

In order to charge VAT the vendor must supply an invoice showing the amount of VAT charged and their VAT registration number.

How does VAT work in the case of FO £10/day drinks scheme?

I have never been on a cruise where VAT has been mentioned.

The £10/day is prepaid so is not affected, however, if you decide to buy a drink not on the list, and you are in a Spanish port you will be charged VAT. The cruise line usually issues the "warning" in the daily times.

Good afternoon,

Our Accountants have advised us of the following regarding VAT on our cruise ships:

At present, if a cruise is liable to VAT, F.OCL do not increase prices to reflect the VAT, the prices on-board simply become VAT inclusive and this will be stated on your on-board account statement.

Should you have any queries regarding your particular cruise, please do not hesitate to contact us on internet@fredolsen.co.uk and we will do our best to assist you.

Regards,

F.OCL