Beverage Package upgrade and the dreaded VAT

Just wondering if any of you have come across this situation?

We are on a 7 day Med cruise in August that remains within the EU, so various purchases onboard will be subject to VAT at the Italian rate of 22%.

We have the O Life package and have chosen the House beverage package as our option. We intend to upgrade to the Premium and have asked O if we can do this. However, they will not allow me to pre-purchase this now but only permit it once onboard, where it is going to have the additional 22% added to the cost (circa $58).

Now while in the great scheme of things it's not a deal breaker, it does seem a bit stubborn as it isn't any more admin for them to do this now rather than on the ship.

My understanding is that the "buy onboard" requirement has to do with what bucket the "income"goes into on Oceania's books.

That would be a very difficult thing to change, in that your Onboard account does not officially EXIST until Sailing Day.

They give us options on which benefits to use in Olife, precisely because this sort of dilemma crops up from time to time.

We did exactly the same thing in November - opted for the wine/beer at lunch package and then once on board went to the reception desk and upgraded to the Premium package. We sailed from Venice to Rome. We were not charged any TVA (VAT). Just paid the per day price x 2 for the two of us for the duration of the voyage.

I thought the added VAT was for ships in Spanish waters ??

Has Italy now jumped on the gravy train?

I think when we did this we were not charged the additional VAT as the purchase was nominally from O HQ in Miami. May have misremembered this though.

If you visit ports not in the EU, eg Kotor and Malta come to mind, then VAT is not charged, but on my cruise, ports in Italy, Sardinia and France are all in the EU.

JimandStan, your answer probably makes the most sense of the situation, but it ends up with the customer paying an additional charge that benefits neither they or the company.

It's just a pity

I was in this situation not long ago on Oceania and as Hambagahle stated their experience we also were not charged the VAT for the upgrade.

The Currents stated that the VAT would be on Boutique and Spa purchases.

ORV , from which port did your cruise commence?

ORV , from which port did your cruise commence?

I'll have to look through my notes, as we take 3 or 4 a year. I'll get back with you on it.

Like LTH28 I don't know if Italy's VAT does apply to onboard purchases as it does from Barcelona

Note that while you might dread their VAT other jurisdictions also charge tax such as Sales tax on a drink while within some limit from Miami

Also I read at one time the package was not be charged tax at all even in Barcelona, though a drink purchase was. That might have changed, as tax rules do, so current info is the best info and sorry I don't have that.

ORV , from which port did your cruise commence?

I'll have to look through my notes, as we take 3 or 4 a year. I'll get back with you on it.

Okay, I found it, it was Rome to Rome, 10 days in 2014. Stopped in Italy, France, Spain & Monaco.

Thanks for that, looks like I'll just have to wait and see if the tax applies or not.

We boarded Riviera in Civitavecchia, Italy last November (2017) with the House Beverage Package through OLife. We upgraded upon boarding and were charged the flat rate of $20 per person per day -- no VAT.

If you visit ports not in the EU, eg Kotor and Malta come to mind, then VAT is not charged, but on my cruise, ports in Italy, Sardinia and France are all in the EU.

 

JimandStan, your answer probably makes the most sense of the situation, but it ends up with the customer paying an additional charge that benefits neither they or the company.

 

It's just a pity

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JimandStan, your answer probably makes the most sense of the situation, but it ends up with the customer paying an additional charge that benefits neither they or the company.

True, but Oceania's ships service the globe, so they can't be expected to modify their business plan each time that taxes for one country or another are reconfigured. The logistics would be impossible.

Look at it this way, you will only be paying half the Vat that you would have paid if Oceania had not gifted you with the base package.

Was just on a Med sailing 100% EU, only gift shop and spa merchandise added the VAT.

Thank you, that is good news.

There is no VAT charge at all in any "waters" for upgrading the beverage package.

Barcelona to Miami do we have to pay VAT tax from Barcelona until we leave the Med ??

Yes, it is my understanding that in Spanish waters there is a Tax charge on beverages, but not sure what the Italian perspective is. Part of the trouble is that each EU country can apply whatever rate it wishes.

Anyway the recent posts seem to indicate that the Italians do not apply any tax to drinks.

Looking at other boards, this query seems to appear on several, with an array of answers.

I did receive a generic answer from O, which basically made you aware that the VAT was applicable on EU only cruises, but unfortunately no specifics. My O Cruise Concierge has said she will try and get more specific information, which I will pass on when issued.

Given the volume of European sailings, you would think that the companies should be able to produce detailed information prior to going on-board.

In the past it was on cruises sailing in Spanish waters or Brazil that charged the VAT

We have sailed to France a few years ago no added tax

You would think if there was VAT on the cruises around Italy people would have posted here ... outraged at the tax

JMO

Barcelona to Miami do we have to pay VAT tax from Barcelona until we leave the Med ??

I'n on the T/A this year on Rivera that starts in Barcelona and ends in MIA. I called a rep yesterday (Raul) and he said the daily rate included grats and there was no additional taxes. I'm going to use OBC to buy the prestige package so will wait till we board and ask before I buy it! LuAnn

For Clarification the Vat at question here theoretically kicks in on Cruises which depart from Spain

AND SAIL ENTIRELY WITHIN THE EU WITHOUT VISITING A FREEPORT.

The comparisons listed in this thread, though well meaning, do not match that criteria.

Actually, it is the Italian rules I am asking about, we sail out of Civitavecchia, but as you correctly highlight all ports are within the EU.

Still no reply from O.