Non EU Ports for VAT

[DYKWIA]

Noticed there's a thread elsewhere with people upset about Value Added Tax (VAT) being charged on certain European Cruises (usually in 20-22% range). Some people are suggesting that it's certain countries trying to rip off tourists. Not true, just European Union rules.

 

From what I gather any cruise that doesn't have a non EU port on it is itinerary is liable to have VAT added to purchases made at the prevailing rate for the duration of the cruise. If your cruise calls in at one non EU port on its itinerary then the whole cruise is VAT free (Possibly only after it has left the territorial waters of the embarkation point)

 

For many it isn't obvious which ports on a schedule aren't actually in the EU, I thought it might be useful to list the ports that on my reckoning should at the moment mean your cruise is VAT free. If one or more of these ports isn't on your itinerary then look out for that VAT surcharge.

 

 

Gibraltar

Montenegro

Turkey

Russia

Faroe Islands

Iceland

Israel

Norway

Ukraine

The Canaries

 

Not sure about Madeira or The Azores

Edited May 23, 2015 by DYKWIA

[steamboats]

Guernsey counts as non EU. I don´t think Madeira.

 

steamboats

[ClaudiaB]

We cruised in Spain last year and were told all about the form if you spent a certain amount of money. I bought pearls in Mallorca and got the form. Had it signed and stamped on the ship on our last day in port before the Atlantic crossing. I questioned them and made sure I had it all done right. All the receipts, forms, papers, etc. etc.

When I got home I mailed it.

 

It was supposed to take a few weeks to get my VAT tax $$ returned. Not a lot, but certainly worth it for the $60 or so I was going to receive.

That was mid November. It's now end of May. Nothing. :confused:

[Phxazzcruisers]

If you want the VAT back, it is best to get it immediately at the airport of the last EU country you are leaving, if the last ship port is an EU Country. Otherwise, from our experience, you will never get it back......We no longer bother, just look at it as part of the price of the item. If we feel the "all in" price is fair, we buy it, if not, we pass. Just our experience

[Azulann]

If you want the VAT back, it is best to get it immediately at the airport of the last EU country you are leaving, if the last ship port is an EU Country. Otherwise, from our experience, you will never get it back......We no longer bother, just look at it as part of the price of the item. If we feel the "all in" price is fair, we buy it, if not, we pass. Just our experience

 

I agree with you and I have never felt waiting in line at a EU airport is worth it at the end of my vacation in Europe for my paltry purchases.

Some of my friends have on the other hand bought a set of Italian pottery, original oil painting, gold jewelry and did get the VAT tax back at the airport or last EU port of call.

[Bru92]

The last time we tried to get the VAT rebate was leaving Lisbon for a transatlantic crossing. There was no customs agent to stamp the forms so we inquired and were sent to a nearby building where we were told they only handled commercial shipping customs paperwork. We finally found a drop box at the port, submitted our paperwork, and never got the rebate.

 

Sometimes it works, sometimes it doesn't.

 

Mike in Ohio

[mrjoshua]

Thank you Dykwia, this clears up why our last cruise was Tax free and our latest one wasn't. No one onboard seemed to be able to provide the answer.

 

It's alright for non-EU guests (if they're willing to queue up at the airport to claim the VAT back), but for us EU citizens, it felt misleading as there were signs all over the place advertising Tax and Duty Free Shopping.

[Azulann]

Thank you Dykwia, this clears up why our last cruise was Tax free and our latest one wasn't. No one onboard seemed to be able to provide the answer.

 

It's alright for non-EU guests (if they're willing to queue up at the airport to claim the VAT back), but for us EU citizens, it felt misleading as there were signs all over the place advertising Tax and Duty Free Shopping.

 

Next time you come to the US fly into MSP airport and shop at our Duty free shop. Also the Mall of America is a short metro ride away. :cool:

Here in MN we have a state sales tax, but not on clothes or food that is not already prepared.

WE have tour groups from Japan that just come to do shopping here in MSP.

Check out what the tax on clothes is in Florida, NJ or NY or other ports here in the US.

Edited May 23, 2015 by Azulann

[cruisestitch]

"Tax and Duty Free" does not refer to the potential taxes and duties a passenger might have to pay, it means that the retail shop was able to avoid paying the taxes and duties to carry those items. Thus the on-board shop can offer the items for a lower price than a land-based shop which would have had to pay those taxes and duties to stock those items.

 

If you buy something for which your home country would charge duty, no matter whether you buy it on land or on a ship, when returning to your home country you are subject to their duty collection.

[DYKWIA]

"Tax and Duty Free" does not refer to the potential taxes and duties a passenger might have to pay, it means that the retail shop was able to avoid paying the taxes and duties to carry those items. Thus the on-board shop can offer the items for a lower price than a land-based shop which would have had to pay those taxes and duties to stock those items.

 

If you buy something for which your home country would charge duty, no matter whether you buy it on land or on a ship, when returning to your home country you are subject to their duty collection.

 

Other thing we found out last year is that some European Duty Free Shops at the Port don't care where you're from and are happy to sell you stuff Duty Free (theoretically unless you're at a Duty Free Port a resident of an EU country (e.g. Great Britain) isn't allowed to but Duty Free from another (e.g.Spain). That rule was being ignored by one Spanish port last year which had a much better selection than on board

Edited May 23, 2015 by DYKWIA

[cruisestitch]

Shops sell to customers "Duty Free" because they didn't pay duty to bring the items onto their shelves.

 

You might still have to pay duty when you enter your home country if the item is dutiable.

 

Example: you buy a case of Scotch at a duty free store. The price is lower than what your local store charges, because the DF store didn't pay duty. You bring that case of Scotch home with you, but your country's duty free allowance is one bottle of liquor. You would still have to pay duty on the other eleven bottles.

[Wiltonian]

A lot of UK airports have "Duty Free" shops which are nothing of the sort if you're not leaving the EU. It's a con dating from the time before the EU when you could buy 'duty free' on a trip to France. French alcohol is, of course, much cheaper than in the UK, even with taxes paid.

 

Stuart

[Pushka]

It isnt VAT it is a another tax that Spain has introduced.

[Pushka]

Just to confirm

 

[scifimonkey]

Unfortunately a lot of European countries are broke. It is politically much easier for them to raise taxes on tourists than on citizens as by definition the tourists cannot vote them out of office. This is not the same as the VAT which is a sales tax applied at a narrow range of levels Europe wide to everyone.

The impact on tourism in Spain of this 'tax on tourists' will be watched carefully by Italy, Greece and Portugal and to a lesser extent perhaps by the Northern European countries all of whom could do with some extra funds. Expect it to be implemented there as well before too long as well as other innovative ways of raising externally sourced funding.:(

[Wiltonian]

I was in Mallorca at Easter; given the way the Euro has fallen against both the $ and the £, it's still much cheaper for non-Eurozone tourists in the Eurozone than it was last year, even with an extra 2.5E to pay.

 

Stuart

[Pushka]

I was in Mallorca at Easter; given the way the Euro has fallen against both the $ and the £, it's still much cheaper for non-Eurozone tourists in the Eurozone than it was last year, even with an extra 2.5E to pay.

 

 

 

Stuart

 

 

Not for Australians though. Or possibly Canadians.