Cheers in Europe & VAT

[gailjen]

I think the main issue here is that no one was advised in advance, this 12 night cruise was never sailing to any non EU country so it's not the same as some where Turkey has been pulled. Carnival know all along they would be collecting VAT but chose to slip a piece of paper among all the other bits you get in your cabin, also as we all got $8 refundable OBC the situation with my fellow cruiser Daddyfixits daughter didn't become apparent until this was used up so affected everyone at different times depending on how many drinks you bought. My husband had a Cheers package and 10% & 24% in Greek waters very quickly adds up.

[TinyG]

Still wondering for those on the TA, we are leaving Europe and sailing to New York. So would I still be paying for Spain tax (departure port) when I am in Bermuda? Do the stores on board ever become duty free? We had planned on buying Cheers for the TA, does not seem so simple anymore :rolleyes:

[LaCal]

They are now selling onboard for the pre purchase price of $49.95 so if you think this might be an issue I would cancel in advance and buy when onboard so you only pay 10% tax on the package, not per drink.

 

People just off this cruise are stating they are charging the 10% vat PER DRINK even if you have the Cheers pkg not on the Prepaid full package price

 

They are also charging the 10% tax on the value of the Free drinks in the casino per casino guests just off.....about .60-$1.00 per mixed drink depending on what kind you're drinking. Still better than Full Price

[cclarke12]

People just off this cruise are stating they are charging the 10% vat PER DRINK even if you have the Cheers pkg not on the Prepaid full package price

 

They are also charging the 10% tax on the value of the Free drinks in the casino per casino guests just off.....about .60-$1.00 per mixed drink depending on what kind you're drinking. Still better than Full Price

 

Well that's just bonkers - how can they charge 10% on something they are giving away for free. I can only comment that on this cruise we are not being charged 10% on each transaction on bottomless bubbles. I would not pay it. They can't charge me 10% on package price then per drink, that would be collecting the taxes twice. To be honest this is a lovely ship but staff as nice as they are, aren't that well informed or efficient.

[heatherbelle]

No - every soda requested is zero charge listed on my account. 10% tax paid at point of purchase and no extras charged

 

It seems the issue appears to be for people who pre purchased. I tried to pre purchase but they stopped allowing this after 1 August. I can confirm other posts that have stated no issues encountered with bringing alcohol onboard. As you can imagine I'm now pleased I didn't buy a cheers package. I think the likes of Celebrity and NCL offering free packages with do very well with UK cruisers now. The poor exchange rate for UK cruisers coupled with Spanish taxes make for an expensive holiday.

 

 

Well I purchased the bubbles package onboard and have an additional .15c for every drink that my child on the ship during last weeks cruise. So extra VAT was charged for us.

[les37b]

Well I purchased the bubbles package onboard and have an additional .15c for every drink that my child on the ship during last weeks cruise. So extra VAT was charged for us.

 

Then quite frankly Carnival are clueless or deliberately commiting fraud.

 

I just hope this was posted as a wind up.

[cclarke12]

Well I purchased the bubbles package onboard and have an additional .15c for every drink that my child on the ship during last weeks cruise. So extra VAT was charged for us.

 

Well it's changed since the last cruise then. As per previous posts I have been charged 10% tax at the point of purchasing the package. No further charge has been made. My son's account has 15 or so entries for soft drinks, all of which say €0.00.

 

If you have been charged VAT at the point of sale and then AGAIN on each drink then I would raise a complaint with your credit card as they are charging you double VAT. This has never been the case on soda packages purchased from

RCI and NCL ex Barca sailings, where the tax has only ever been collected on the package price.

 

I am guessing this extra tax on top on the tax already paid, won't be finding its way to the Spanish tax authorities. Nice little earner for Carnival.

[IsanTom]

Europe is very expensive. You have country tax, then you have European Union Tax, then

you have UN Tax, so they actually have to pay three government agency taxes. As we all know, governments don't create income, so someone has to pay and it looks like they are doing a good job in collecting taxes.

[cclarke12]

Here is proof we are not being charged extra VAT as it seems my constant assurances on the current state of play are not sufficient.

[les37b]

 

I am guessing this extra tax on top on the tax already paid, won't be finding its way to the Spanish tax authorities. Nice little earner for Carnival.

 

That is exactly what I'm thinking.... And in exactly the same way that gratuities paid do not all make their way to staff.

 

Anyone wonder why carnival are keeping a lid on this and not letting passengers know?

 

It's dishonest at best or just downright deceitful not to let people know their flat fee know where you stand drink packages are anything but that.

[cclarke12]

Europe is very expensive. You have country tax, then you have European Union Tax, then

you have UN Tax, so they actually have to pay three government agency taxes. As we all know, governments don't create income, so someone has to pay and it looks like they are doing a good job in collecting taxes.

 

This is completely untrue. There is no universal EU or UN tax.

[les37b]

They are now selling onboard for the pre purchase price of $49.95 so if you think this might be an issue I would cancel in advance and buy when onboard so you only pay 10% tax on the package, not per drink.

 

This is precisely what I am thinking about doing, but I won't be rebuying if they are charging vat on the package AND per drink.

 

I really hope that's a mistake and not deliberate. That said they have been clueless up to this point.

 

I spoke with their customer services yesterday and was told they are just doing what they've been told to do. I think I can safely say they are not.

Edited August 23, 2016 by les37b

[les37b]

Europe is very expensive. You have country tax, then you have European Union Tax, then

you have UN Tax, so they actually have to pay three government agency taxes. As we all know, governments don't create income, so someone has to pay and it looks like they are doing a good job in collecting taxes.

 

What on earth are you talking about?

 

Did Carnival tell you this inaccurate information?

[les37b]

Here is proof we are not being charged extra VAT as it seems my constant assurances on the current state of play are not sufficient.

 

I didn't doubt you at all and to be fair, if you did buy the package once on board, what they've done for you exactly what they are legally obliged to do.

 

What they are now doing if reports are true is illegal. You cannot be charged VAT twice.

 

Come to think of it, having already paid in advance to charge VAT on an item which is costing $0.00 is also illegal.

 

How could carnival be getting this so wrong?

[gailjen]

I didn't doubt you at all and to be fair, if you did buy the package once on board, what they've done for you exactly what they are legally obliged to do.

 

What they are now doing if reports are true is illegal. You cannot be charged VAT twice.

 

Come to think of it, having already paid in advance to charge VAT on an item which is costing $0.00 is also illegal.

 

How could carnival be getting this so wrong?

 

It's not as if our 12 days cruise was one that was originally going to Turkey and this VAT has become apparent after cancelling Turkey. Our cruise has always only been sailing in the EU so Carnival have had over a year to organise what tax's they/us need to pay, this is a shambles..

[KingHal]

I sailed the 12-night Vista cruise, and had a pre-purchased Cheers package. No tax was paid on the Cheers package at time of purchase. I was, like everyone else, charged vat on every drink ordered on Vista.

 

I am currently on Harmony of the Seas (lucky me) and have the Royal Caribbean equivalent of a Cheers Package (=Ultimate). On Hatmony when I order a drink I don't even see a bill - no additional charge. HOWEVER to put it all into perspective, the RCI equivalent of Cheers costs $62 a day vs $49 for Cheers, so they have more leeway to play with. When I go off package, to order a bottle of wine, I do get hit by VAT.

[KingHal]

Just to add to my last post, on RCI I had free Premium Drinks package as a booking perk. On boarding I upgraded to Ultimate (to match the Cheers package) at a cost of an extra $7 per night HOWEVER 18% gratuities AND 10% VAT were added to the purchase price of $7 per night for the upgrade.

[les37b]

After several calls to CS, the responses I have now certainly suggest that Carnival have now realised their error with the double taxing of cheers that was being reported and the 'what it would have cost you" tax being applied to indivual drinks obtained under this scheme.

 

The response the lovely supervisor has sent me reassures me that should any charges be mistakenly applied to my cheers drinks, they will be reimbursed upon my return. She includes a passage from the ships purser in this respect that it won't happen.

 

It will be interesting to hear from those getting off today as they certainly had charged at the begging of their cruise.

 

In the meantime, the mockers and playground insulters.... Eat your heart out. Told you they'd got it wrong and they've woken up to that now.

[LIMPIT]

les37b, thanks for the update, however this may be ok for the guests whom were fortunate enough to purchase prior to it being withdrawn from pre purchase, do you think that purchasers of the package on board (1st October sailing) will have to pay the dreaded vat of 10% on the purchase value, which I understand is $54.95 per day, x 10 days x two persons is a lot of $ for us Brits already receiving an approx 12% slide of value of the £ against the $ and € since Brexit !

 

 

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[les37b]

Limpit, unfortunately if you haven't already bought, then it will tax added to the purchase price on board. However it's rumoured that the price hike for buying on board and not pre cruise has been removed.

 

The big thing is the "would have cost you" tax is not being applied.

 

I will find up for sure and update today once I'm onboard.

[LIMPIT]

Many thanks, I am sharing your info with our CC Roll Call [emoji106]

 

 

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[LaCal]

Limpit, unfortunately if you haven't already bought, then it will tax added to the purchase price on board. However it's rumoured that the price hike for buying on board and not pre cruise has been removed.

 

The big thing is the "would have cost you" tax is not being applied.

 

I will find up for sure and update today once I'm onboard.

 

Les under the "What it would of cost" theory do you think it's wrong for Carnival to also charge the tax on Free Drinks?

 

They have been and it seemed weird to me.....basically people are saying its approx .60-$1 per drink for the Free Drinks in the casino

[les37b]

Les under the "What it would of cost" theory do you think it's wrong for Carnival to also charge the tax on Free Drinks?

 

They have been and it seemed weird to me.....basically people are saying its approx .60-$1 per drink for the Free Drinks in the casino

 

The tax itself is a 10% value on what it has cost you. So a drink given should be zero.

 

On onboard now.... No extra charges on cheers (which we pre booked) The casino should be the same as no money is changing hands (electronically obviously) so a bit about turn. They've finally realised it was wrong and corrected it. Kudos for that.

[aksjs]

sail tomorrow on the vista from Barcelona - those of you who have done the package - is it worth it? We did try to pre- book but told UK passengers couldn't pre book by CS in USA - we then said that ridiculous as the on board amount is $5 a day dearer - we eventually got them to agree in writing that if we did want it on board it would be at the pre- booked price - will wait and see - must admit with all the mixed reviews re food, drinks, wait time and things am not as much looking forward to as I normally would be!

[LaCal]

No More Cheers pkgs on the remaining Vista Europe cruises even if Pre Purchased 🙀🙀

 

This is per John Heald Today:

 

Yes thats right. Due to the cancellation of Kusadasi from the itinerary, we recently became aware of certain tax implications which affect our beverage packages. Since your cruise departs from Spain (a member of the European Union) and calls only on countries within the European Union, we are required by law to charge a Value Added Tax (VAT). Food and drink purchases at bars and restaurants will be subject to a 10% VAT. Once we reach Crete, the VAT increases to 24% on food and drink purchases at bars and restaurants for the remainder of the cruise.

 

Although some purchases are eligible for a VAT refund, this does not apply to food and drinks.

Due to the fact that VAT tax on CHEERS! and Bottomless Bubbles is charged on the actual drink price (not the discounted price) each time a drink is consumed, these programs no longer provide the level of value our guests originally anticipated. Therefore, we will not be offering these programs on this sailing. Guests who pre-purchased one or both programs will receive a refund to the original form of payment.

Please let me know if I can help further, cheers