Epic - Mediterranean - Shore Excursions - VAT?

[logan25]

I'm wondering if the sailings from Barcelona will entail a VAT on excursions I book with the ship. I have the option of booking and paying before I board. Or I could book after I board but when we are in international waters.

[meltingmoments]

I would be interested in knowing this as well. Currently, when I go to *Explore and Plan* in My NCL, and check out excursions, it says *Items added to the cart will be updated to include all applicable taxes and fees*.......but I can't see anywhere that tells me WHAT those taxes and fees are!

Now I'm a little technically challenged, so it could be obvious to others! :o

[CruisinMaterial]

Very good question. I completely forgot about the VAT!! I think it would apply to the Canary Islands voyages as well since some of the countries are in the EU.

[Froggitt]

I'm wondering if the sailings from Barcelona will entail a VAT on excursions I book with the ship. I have the option of booking and paying before I board. Or I could book after I board but when we are in international waters.

 

Epic Med doesn't leave the EU, therefore international waters doesn't apply.

[insanemagnet]

I'm wondering if the sailings from Barcelona will entail a VAT on excursions I book with the ship. I have the option of booking and paying before I board. Or I could book after I board but when we are in international waters.

 

It doesn't matter where you buy or pay, the liability to VAT depends on the place of supply of the service.

 

Anyway, if there is a VAT liability on excursions, it is likely to fall within Art 306-210 of the Principal VAT Directive (aka Tour Operators Margin Scheme) and will depend on the contractual relationship between the supplier and NCL. Even if the supply did meet the requirements and did create a liability to VAT, the rules prohibit the VAT charge being shown separately as it is calculated on the profit margin, not the whole cost of the excursion.

 

Very good question. I completely forgot about the VAT!! I think it would apply to the Canary Islands voyages as well since some of the countries are in the EU.

 

The Canary Islands are outside the EU VAT area.

[insanemagnet]

...duplicate

Edited May 4, 2015 by insanemagnet

[SteveH2508]

In UK, travel is exempt from VAT - it is probably the same in Spain so there is probably no VAT on shore excursions.

[insanemagnet]

In UK, travel is exempt from VAT - it is probably the same in Spain so there is probably no VAT on shore excursions.

 

In the UK travel is not exempt, it is taxed but at a rate of 0%.

 

That may appear pedantic, but it has huge implications. If a business is making supplies that are exempt, they cannot recover VAT they pay on their costs. If their supply is taxed at 0%, they can.

 

This means that a supply at 0% has no VAT, but a supply that is exempt, although you will not see VAT on the final bill, you have effectively been charged VAT within the amount you have paid.

[SteveH2508]

In the UK travel is not exempt, it is taxed but at a rate of 0%.

 

That may appear pedantic, but it has huge implications. If a business is making supplies that are exempt, they cannot recover VAT they pay on their costs. If their supply is taxed at 0%, they can.

 

This means that a supply at 0% has no VAT, but a supply that is exempt, although you will not see VAT on the final bill, you have effectively been charged VAT within the amount you have paid.

 

OK - I agree that "Passenger transport in a vehicle, boat or aircraft that carries not less than ten passengers" is zero-rated in the UK - mea culpa.

 

The distinction is not really relevant to this discussion however.

 

I am aware of the distinctions between zero-rating and exemption and some of VAT's oddities - I am currently teaching my AAT students about it.

 

Jaffa cake anyone?;)

Edited May 4, 2015 by SteveH2508

[AF-1]

I booked shore excursions for Jade out of Venice. I am on B2B; did not have a vat tax applied at checkout on NCL website.

[Froggitt]

It doesn't matter where you buy or pay, the liability to VAT depends on the place of supply of the service.

 

I booked shore excursions for Jade out of Venice. I am on B2B; did not have a vat tax applied at checkout on NCL website.

 

If you (whether you live in USA or Europe) pay NCL Miami for a $100 excursion in say Rome, or for that matter a $500 UBP on a Med cruise, I'm not sure VAT is payable on either.......NCL Miami (or various subsidiaries) would have to be VAT registered in all the countries they collect VAT for, and AFAIK they are not.