Latest Spirit Review - UBP Question

[andrewjb1]

Just read the latest review for the Spirit.. Whilst it mostly moaning rubbish, there is on interesting section...

 

However we purchased the Unlimited Drinks Package which just lead to the fiasco that is the bar service. In a party of 8 every drink has to be individually signed for, you then get 8 receipts which you then have to find yours, generally in low lighting and sign, your card is also removed, you wait forever to get it back. We then discover that every drink , that has an inflated price anyway has a port tax when you are in a port, which NCL forgot to inform us.

 

So it appears at face value reading the review they got the UBP and had to pay Spanish VAT in port? I have a feeling they are talking rubbish... Can anyone confirm my suspicions?

 

Ta.

[GEORGET]

this tax started a few years ago on all cruises while docked or in Spainish waters. So do not buy anything on board until it leaves.

cannot understand how a pre paid drinks package is affected though, may be the tills cannot work it out.

if your ship does not leave EU waters, it can charge this for the whole cruise and the duty free shops onboard will be closed

Italy has also Vat added.

will find out next week and let you know.

j

[bearette]

Most ports charge tax while in port, but not once you leave. I had this happen on a cruise out of New Orleans. It is local law and nothing to do with the cruise line. Some cruises, like Texas which charges tax on alcohol and the Mediterranean when not stopping at an non-EU country, will also charge tax for the whole cruise.

 

 

I heard you avoid the tax if you prepay for the drink package or buy once you leave the dock, but I don't have experience with this myself.

 

Sent from my KFTHWI using Forums mobile app

[Single Cruiser]

Just read the latest review for the Spirit.. Whilst it mostly moaning rubbish, there is on interesting section...

 

However we purchased the Unlimited Drinks Package which just lead to the fiasco that is the bar service. In a party of 8 every drink has to be individually signed for, you then get 8 receipts which you then have to find yours, generally in low lighting and sign, your card is also removed, you wait forever to get it back. We then discover that every drink , that has an inflated price anyway has a port tax when you are in a port, which NCL forgot to inform us.

 

So it appears at face value reading the review they got the UBP and had to pay Spanish VAT in port? I have a feeling they are talking rubbish... Can anyone confirm my suspicions?

 

Ta.

 

You only pay vat if you buy the UBP onboard. Last year I did, this year I'll pre-pay.

[hawkeyetlse]

I know that regular bar purchases are subject to local VAT in Spanish ports/waters, but I believe this is the first report I've seen of VAT being charged for drinks ordered with the UBP. The reviewer may be talking rubbish, or it could be a recent change in the way Spanish VAT works on cruises (for example, since January 1, so not many people have had a chance to come back and complain about it yet). We shall soon see for ourselves…

 

Since we are getting the UBP for free, paying 10% VAT still amounts to a 90% discount off our drinks while in port, so I don't think it will slow us down that much…

[hawkeyetlse]

So it appears at face value reading the review they got the UBP and had to pay Spanish VAT in port? I have a feeling they are talking rubbish... Can anyone confirm my suspicions?

I think we were just on the same cruise, so you will have confirmed for yourself, but for anyone else reading this thread for future reference: Spanish VAT of 10% is indeed charged on UBP drink orders whenever the ship is in Spanish port/waters (excluding the Canary Islands, thankfully!)

 

I don't believe that passengers were warned about this in the Freestyle Daily or in any other general announcements. I heard the bartenders explaining to some disgruntled guests on the first day that "it says on the Internet that there are taxes sometimes". Which is true enough, but I think passengers are entitled to fuller information about the specific cruise they have just boarded.

[Single Cruiser]

I think we were just on the same cruise, so you will have confirmed for yourself, but for anyone else reading this thread for future reference: Spanish VAT of 10% is indeed charged on UBP drink orders whenever the ship is in Spanish port/waters (excluding the Canary Islands, thankfully!)

 

I don't believe that passengers were warned about this in the Freestyle Daily or in any other general announcements. I heard the bartenders explaining to some disgruntled guests on the first day that "it says on the Internet that there are taxes sometimes". Which is true enough, but I think passengers are entitled to fuller information about the specific cruise they have just boarded.

 

So did you buy the UBP onboard or before you went? And was the tax just shown on your final bill?

 

Last year whilst the receipts you still sign show Spanish vat I didn't pay any!

[deniseatnycs]

We were on the Spirit for the 2014/5 Christmas and New Year Cruise from Malaga. Purchased (as in paid for) the UBP months before we sailed (booked through NCL.co.uk).

 

As we sailed from Malaga and were also in Barcelona December 26th we had drinks from the bar on two days while in "Spanish Waters". Our final bill should have been 0 as we pre paid everything UBP, Excursions, and Service Charge. Was a bit miffed to see the Spanish Tax which meant we had a final bill of just of 10 GBP taken out of our U.K. Bank account on return. Strange as we purchased everything in the U.K. before we sailed but as our cruise was fabulous without exception decided not to spoil it trying to get a refund.

 

So yes in answer to the original post there is an extra tax to pay when ordering (not purchasing) drinks in Spanish waters.

 

Denise

[hawkeyetlse]

So did you buy the UBP onboard or before you went? And was the tax just shown on your final bill?

We didn't buy it at all, it was free as part of the Freestyle Choice promo. So we came out way ahead no matter what, and the Spanish economy needs all the help it can get…

 

The 10% was indicated on the bar bills, but there was no forewarning or explanation in our case. I don't know how people who bought the UBP on boarding in Barcelona or Malaga were affected (I certainly hope they were not charged 10% VAT on the package, plus 10% VAT on each drink order!)

[Single Cruiser]

We didn't buy it at all, it was free as part of the Freestyle Choice promo. So we came out way ahead no matter what, and the Spanish economy needs all the help it can get…

 

The 10% was indicated on the bar bills, but there was no forewarning or explanation in our case. I don't know how people who bought the UBP on boarding in Barcelona or Malaga were affected (I certainly hope they were not charged 10% VAT on the package, plus 10% VAT on each drink order!)

 

When I've bought the package before on board I was charged the VAT just on the package. I'll see next week :)

[hawkeyetlse]

I will be on the Spirit next week with a promotional UBP. If they try and charge VAT I will discuss it with guest services. Even when it is just a few $ my gut says that is not okay.

I think if there were any way NCL could avoid collecting this VAT, they would do so. They could choose to pay it themselves and not charge the customer the extra 10% but that's not something I would expect any company to do, especially if they're already giving you the drinks for free and tipping the bar staff on your behalf.

 

I'm curious to find out how this works for cruises leaving from Spain that stay within the EU VAT area. Do they charge the 10% throughout the entire cruise?

[jodieh12]

Just got off spirit yesterday. We got the ubp as part of the promo and I can confirm that in Barcelona and Malaga the tax appeared on our stateroom bill. It was coppers so didn't matter to us as we got the package free.

[Single Cruiser]

I think if there were any way NCL could avoid collecting this VAT, they would do so. They could choose to pay it themselves and not charge the customer the extra 10% but that's not something I would expect any company to do, especially if they're already giving you the drinks for free and tipping the bar staff on your behalf.

 

I'm curious to find out how this works for cruises leaving from Spain that stay within the EU VAT area. Do they charge the 10% throughout the entire cruise?

 

Yes Epic's closed loop week med cruises vat is applied for the duration. But again, whenever I've prepaid UBP (not part of package) I've never had vat added to onboard account so it might be new for this year!

[andrewjb1]

I can now confirm myself.... It's added and appears on your end statement, it wasn't much, but they really should mention it. I couldn't see it on any literature before or onboard.

 

 

Sent from my iPad using Tapatalk

[lynnquenby]

I can now confirm myself.... It's added and appears on your end statement, it wasn't much, but they really should mention it. I couldn't see it on any literature before or onboard.

 

 

Sent from my iPad using Tapatalk

 

Thanks for the confirmation.

 

I think its really bad it's unclear in T&c's as there will be a lot of people who expect to pay nothing at all as all 'prepaid'.

 

I've been trying to get a formal response via social media channels but they won't commit. ...... Keep directing me to call..... Wonder why? ?!

 

NCL - we know you read the boards why not just make this crystal clear for your passengers really feels a little underhand (even if the amount is small!)

[Single Cruiser]

Thanks for the confirmation.

 

I think its really bad it's unclear in T&c's as there will be a lot of people who expect to pay nothing at all as all 'prepaid'.

 

I've been trying to get a formal response via social media channels but they won't commit. ...... Keep directing me to call..... Wonder why? ?!

 

NCL - we know you read the boards why not just make this crystal clear for your passengers really feels a little underhand (even if the amount is small!)

 

The Spanish government probably cottoned on that UBP was being pre-sold with no VAT and as more UBP packages have been sold they'd notice a drop in VAT returns.

 

Last 2yrs on European cruises Spirit and Epic I wasn't charged VAT when UBP was pre-purchased.

[Jofishes]

this is just from the ncl.co.uk web page

 

in the terms and conditions section (the link was under the UBP description) it says the following

 

Terms & Conditions

Please note that we charge 15% gratuity and on cruises from/to Spain and Italy

we are required to charge an additional VAT.

 

so to me that's pretty clear that VAT is charged from these ports

 

what's not clear is will it be charged if my UPB was freebie :confused: if I never paid for it in the first place then how can I pay tax on it ?

[hawkeyetlse]

If on your final account statement all the drink costs are removed and you only have the VAT but no corresponding "purchase", that makes no sense at all.

There is a purchase, but the price is $0. So I agree that the tax should also be $0.

 

Maybe someone can answer this: If you buy something at the gift shop or photo gallery on a cruise where Spanish VAT is applied and NCL gives you a 25% discount on the purchase, is the VAT calculated based on the original price or the discounted price?

[hawkeyetlse]

Terms & Conditions

Please note that we charge 15% gratuity and on cruises from/to Spain and Italy

we are required to charge an additional VAT.

 

so to me that's pretty clear that VAT is charged from these ports

I don't think there's anything wrong with the general T&C. But it is too general. I would like for NCL to provide more precise information about the particular cruise that I have just boarded: exactly when VAT will be charged, on exactly what types of purchases, and at what rate(s). They did this to some extent on my previous Jade cruise out of Italy, but I saw no information at all on my last Spirit cruise out of Spain.

[Froggitt]

All part of NCL's woeful lack of understanding of VAT rules, and their US centric systems.

[cliffy97]

I will be on the Spirit in a few weeks and whilst it will suck if we get charged the VAT per drink I can understand it.

 

When I worked for Sprint in California the sales tax rules meant that we always had to charge tax on the full retail price of the "free" phone we were selling.

 

It sucks and I am not sure how the Spanish VAT rules differ, but I know in the UK you pay the VAT on the final selling price.

 

Either way I'm not going to worry about a few bucks at the end of the cruise.

 

 

Cliffy

[hawkeyetlse]

I will be on the Spirit in a few weeks and whilst it will suck if we get charged the VAT per drink I can understand it.

That was our attitude, and in the end I think we ended up paying less than $15 in VAT for drinks ordered in Barcelona and Malaga.

 

However, later this year we will be on the Epic, round-trip Barcelona, staying within the EU VAT area, and 10% on all drinks ordered throughout the cruise will add more than $100 to our final bill. :( It's still not a lot of money compared to the cost of the UBP that we are getting for free, but the idea that we will be paying for each drink kind of undermines the point of having the package.

[andrewjb1]

That was our attitude, and in the end I think we ended up paying less than $15 in VAT for drinks ordered in Barcelona and Malaga.

 

However, later this year we will be on the Epic, round-trip Barcelona, staying within the EU VAT area, and 10% on all drinks ordered throughout the cruise will add more than $100 to our final bill. :( It's still not a lot of money compared to the cost of the UBP that we are getting for free, but the idea that we will be paying for each drink kind of undermines the point of having the package.

 

I have also booked the Epic this Summer. Ill be really p*ssed off if they charge it on every drink.

[GEORGET]

On the Spirit the drinks did not appear on your final statement, only the VAT charged on drinks while in a Spainish port. the UDP was listed

 

please note that the Drink slip you sign shows the full cost of the drink charge and is not zero, this is done later.

this is why VAT can be added.

Vat on the Canary cruise was in Barcelona and Malaga Only and was 10%,

bill shows VODKA $7.50 AUTO GRATS $1.13 VAT 10% $0,75 TOTAL 9.38.

You sign this but only the Vat charged is on your statement.

 

Be warned though this 10% can be added to your bill on all drinks if the ship does not leave EU waters.

hope it helps j

[Lucinarei]

Be warned though this 10% can be added to your bill on all drinks if the ship does not leave EU waters.

hope it helps j

 

So, if we're on the Spirit this summer for the Grand Med cruise (which is primarily in EU countries, but does leave EU waters to visit Turkey), when should be expect to pay the VAT? We have the promotional UBP and, while I don't mind paying the VAT, I'd like to get an idea of what kind of total we'll have in the end.

 

Thanks!! :D