VAT tax on drinks on Splendida

I have been looking into getting the Allegrissimo drink package for my upcoming cruise on the Splendida. It is my understanding that if you purchase your package before the cruise (I am in the US) you dont have to pay the VAT tax which is around 20%. But if you wait to buy the package, or if you buy individual drinks onboard the ship you get charged the tax. I am not one bit familiar with the tax, and read on one post that different items are taxed different amounts. I am trying to figure out how much I would pay per drink if I bought them individually and on the ship.

What would the cost of a soda be tax included on the ship? Are the prices listed on the menus tax inclusive? How much would a beer be? How much for a cocktail?

EXAMPLE: a CocoLoco has a menu price of $7 euro, at todays exchange rate that is approximately $7.50USD. If I buy that CocoLoco on the ship with a 20%VAT tax that would be $8.40EUR which is approximtely $9.00USD. On the divina they charge a service charge as well. Do they charge a service charge on top of the VAT? How much in USD will the total cost of this menu priced $7 CocoLoco actually cost me?

Am I way off on figuring this? Please explain this to me if I am wrong, which I hope I am.

As I re-read this post it reminds me of an adult algebra equation that my Jr High teacher warned me about. I was told that someday I would use algebra......

If a CocoLoco is 7 Euros.....you will be charged 7 + 15% tip....8.05 Euros.

Think this is how it works

Unlike the USA where sales tax is applied at the cash register (not displayed on the "shelf price") prices to consumers on display in Europe always include VAT. The VAT rate differs between countries and type of product.

You´re mixing up two different things:

* 15% service charge

* European VAT (rate depending of the main port of embarkation)

As for the beverage packages: When you buy it online you don´t pay the 15% service charge. When you buy onboard 15% service charge will be added - same for individual drinks bought onboard.

VAT (value added tax) only applies to cruises which start at an EU port and have no non EU port of call on the itinerary. As example: Barcelona is the port of embarkation and the itinerary is Marseille, Palma de Mallorca, La Spezia, Civitavecchia, Naples. All ports are EU ports. Therefore the Spanish VAT (Barcelona as port of embarkation) applies to all purchases. It´s 10% for all food and beverages (reduced rate, 21% for all other purchases).

I know that the US cruise lines (like NCL, RCI) do add this to the tagged price. I haven´t heard that MSC or Costa are adding the VAT to the tagged price (in Europe the VAT has to be included in the tagged price - so you pay what´s on the price tag - no additions at the register). They do add the service charge.

steamboats

I'm a frequent cruiser with MSC and I've never seen VAT tacked on to my tickets or purchases pre-cruise or on board. The only add-on tax are the so-called port taxes that get added to the ticket price along with the obligatory insurance fee. I book my cruises with an Italian travel agent so if Italy charges VAT on the ticket price it's included with the cruise fare so I wouldn't see it.

There's some talk that Spain wants to tax on board expenses while a cruise ship is in a Spanish port but so far this is just talk.

The 15% add-on for all on board purchases, including drinks, spa, excursions, etc. is called a service charge which gets distributed out to all crew members.

There's some talk that Spain wants to tax on board expenses while a cruise ship is in a Spanish port but so far this is just talk.

Actually Spain is doing this as well as Italy. But MSC does not add the VAT to the tagged prices. Other cruise lines like NCL or RCI are doing this.

So with RCI you pay

12 USD drink price listed in the menu

2.16 USD service charge (18%)

1.20 USD Spanish VAT (10%)

Total: 15.36 USD

MSC has to pay the Spanish VAT. They pay it out of the listed drink price.

steamboats

Don't forget that in Europe the tax is included in the sticker price on land, so it would be very natural for MSC to do the same on board. This may explain the difference, while in the US the tax is added at the pay point.

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