Brilliance itinerary change- Kusadasi gone

[abo]

The VAT/IVA rules are very complicated in the EU and this regulation comes up regularly as a result. Basically (and this is really over-simplifying) any ship that leaves any EU port and returns to another/the same EU port without stopping at a non-VAT'able port is subject to the VAT regulations. I say non-VATable because this covers those ships stopping at Gibraltar for example, which is in the EU but subject to special tax status. Any port that is outside the EU is by definition outside the regulation, so the effect of stopping at Kusadasi is to remove the VAT requirement for the whole cruise.

 

Although often referred to as Spanish Tax this does in fact cover all cruises starting and ending in the EU, but the Spanish rate is (generally) higher and applied to more items, so the impact is often more marked for cruises leaving/starting in Spain. Also transatlantics often start/end in Barcelona so this is the first port that these passengers are impacted.

 

The tax affects all purchasers of goods in the EU, regardless of nationality. However non-EU residents can claim back VAT on goods exported from the EU, for example if you bought a souvenir on the ship you could claim this back. There are strict rules as to how and where this claim can be made so don't just assume you can do this at the airport on the way home - check on board for the detailed process. VAT on items consumed on the ship cannot be reclaimed (food and drink where applicable being the most obvious, but also tobacco products, etc.)

 

There have been a number of debates regarding whether this can/should apply to pre-purchased packages but the practical result is that VAT does not get charged to US residents buying in advance but obviously check online at time of purchase. There is no risk of being expected to pay the 'missing' VAT once onboard as you are not making a purchase in the EU (VAT charged must be tied to an actual purchase).

 

My apologies to any tax accountants reading this - I know I have taken a lot of liberties with details and terminology here.

[johnjen]

Johnjen, don't think it applies to drinks onboard as they are for consumption during the voyage.Likewise food and drink packages. It would however I think apply to bottles of alcohol sold by RC which would be delivered to take home at the end of the voyage which I think was the reason Celebrity simply cleared the drink store last year.

Biggest problem would be that every item sold in onboard shops would be subject to the VAT ,including photos .

 

Well, that's a relief, we hope! Considering the excursions we'll be taking and the time away from the ship, we realized that, economically, we wouldn't be getting our money's worth even if we bought ONE deluxe drink package, so if what you're saying is true, we'll just buy separate drinks. And, we're not big consumers of alcohol as it is. We like to get a drink before or after dinner.

 

Funny though, we met a couple on our last cruise, they had a deluxe package. We sat with them at the meet & greet that morning at 9:30am - the M&G brought us free mimosas and bellinis....Jen didn't want to drink that early so I drank hers....after me downing around 5 of those at the M&G, we went to the aft bar. That couple was getting MORE drinks for us on their package....before I knew it the entire day was nothing but drinking....that's never happened to me before, haha!

 

But as of yet? Nothing heard back from RCL on this. When I do, I will post it here. Looking fwd to seeing you guys on our cruise at the meet and greet - and if there's mimosas and bellinis again? You'll be able to spot me a mile away!

[johnjen]

The latest from RCL on my questions regarding Spanish VAT:

 

It took the rep a while to reach a supervisor to ask, but YES, it is TRUE that ALL things purchased on the cruises that had Turkey cancelled WILL be subject to a Spanish VAT of 21%. This is to include drinks. However, I found it fishy how the RCL rep kept on advising me to avoid the VAT would be to buy a Drink Package before boarding.

 

The drink price breakdown: It's not a 21% tax on INDIVIDUAL drink purchases. If you buy two drinks, it's 21% on the total. Of course, we'll be buying two drinks each time.

 

Realizing we're not heavy drinkers we'll just buy an occasional drink now and then - and, seeing we're not on board half the time as it is, thanks to the multiple port visits and lengthy excursions, buying separate drinks makes sense instead of a drink package. We've got close to $500 in OBC as it is anyway.

[Cruise Betty]

I could never drink enough to justify a drinks package and doubt DH could either.We will bring wine on board anyway and get son in law and daughter to do the same though they are not wine drinkers. Will try to make the most of Diamond drinks though it's a tricky one because the rest are not Diamond.

[easyboy]

The latest from RCL on my questions regarding Spanish VAT:

 

It took the rep a while to reach a supervisor to ask, but YES, it is TRUE that ALL things purchased on the cruises that had Turkey cancelled WILL be subject to a Spanish VAT of 21%. This is to include drinks. However, I found it fishy how the RCL rep kept on advising me to avoid the VAT would be to buy a Drink Package before boarding.

 

The drink price breakdown: It's not a 21% tax on INDIVIDUAL drink purchases. If you buy two drinks, it's 21% on the total. Of course, we'll be buying two drinks each time.

 

Realizing we're not heavy drinkers we'll just buy an occasional drink now and then - and, seeing we're not on board half the time as it is, thanks to the multiple port visits and lengthy excursions, buying separate drinks makes sense instead of a drink package. We've got close to $500 in OBC as it is anyway.

 

 

I guess the pay-as-you-order scheme with VAT will still be beneficial for us occasional drinkers.

[ocav]

The drink price breakdown: It's not a 21% tax on INDIVIDUAL drink purchases. If you buy two drinks, it's 21% on the total. Of course, we'll be buying two drinks each time.

 

 

While it's 21% on the bill total, it's not more or no less VAT if you buy one drink or two. It's still $2.10 for every $10 spent. You don't save anything by buying 2 drinks at a time

[johnjen]

Still, I think it's insane how the ship gets taxed in international waters but apparently some bean counters and tax gurus decided since the ship leaves Spain and comes back to the same port, we're getting hit with Spanish taxes, regardless. But I'm not allowing that to spoil the vacation! Besides, according to the lady at RCL, we may be able to file for a refund at BCN on departure day from Spain - I'm interested to learn how that all works and how is the refund given back? If it's in Euros we'll probably just spend it there at BCN before boarding the aircraft.

[johnjen]

I could never drink enough to justify a drinks package and doubt DH could either.We will bring wine on board anyway and get son in law and daughter to do the same though they are not wine drinkers. Will try to make the most of Diamond drinks though it's a tricky one because the rest are not Diamond.

 

Yeah, that's us too. We'll buy two bottles of wine in Barcelona before departure and take that in our carry-on. Might even try and sneak a third!

[abo]

Besides, according to the lady at RCL, we may be able to file for a refund at BCN on departure day from Spain - I'm interested to learn how that all works and how is the refund given back? I

 

 

Don't get your hopes up. You can only reclaim for items 'exported' from the EU, not consumed on the ship, so all food, drinks, etc will not be claimable. There are also strict rules on minimum amounts and the process how and where to claim. If your rushing for a plane you may find you don't have time to even fulfil the process.

 

Many people find the whole reclaim process to be not worth doing unless you have a particularly pricey purchase to claim for (watch or jewellery typically).

 

Incidentally it is not a flat rate 21% for all items. For Spain most restaurant based foods are usually 10% so I would expect speciality restaurants to carry that rate. Alcohol is 21% but non-alcoholic drinks are 10%, bars and cafes carry a 10% rate..... There's a range of other rates applicable for other goods and services.

[johnjen]

Don't get your hopes up. You can only reclaim for items 'exported' from the EU, not consumed on the ship, so all food, drinks, etc will not be claimable. There are also strict rules on minimum amounts and the process how and where to claim. If your rushing for a plane you may find you don't have time to even fulfil the process.

 

Many people find the whole reclaim process to be not worth doing unless you have a particularly pricey purchase to claim for (watch or jewellery typically).

 

Incidentally it is not a flat rate 21% for all items. For Spain most restaurant based foods are usually 10% so I would expect speciality restaurants to carry that rate. Alcohol is 21% but non-alcoholic drinks are 10%, bars and cafes carry a 10% rate..... There's a range of other rates applicable for other goods and services.

 

Thanks for this. We'll probably not be buying much anyway except for an occasional fridge magnet, trinket as it is anyway. Maybe a T shirt or two. This isn't that big as a deal as I thought at first.