Tax on drinks in port in Southampton

[samshltn]

I'm used to paying tax on drinks in US ports, and not in Caribbean ones... and I forget whether I did or not in other ports.

 

My question is: Is VAT charged on drinks whilst in port in the UK? Specifically Southampton/Southampton Water/The Solent etc.

 

Thanks,

 

Sam.

[bmwman]

I'm used to paying tax on drinks in US ports, and not in Caribbean ones... and I forget whether I did or not in other ports.

 

My question is: Is VAT charged on drinks whilst in port in the UK? Specifically Southampton/Southampton Water/The Solent etc.

 

Thanks,

 

Sam.

 

Easy Yes and it will be 20% VAT (UK)

[jaxw17]

Yes but as i know it it is not shown as a separate tax.

[samshltn]

How is the VAT calculated? Is it 20% of the whole cruise fare? Or 20% of the menu prices of the drinks that I would have to pay if the drinks were not free?

 

B) Since the cruise fare is zero-rated, and all I have paid is a cruise fare, how can I be charged VAT at all?

 

Sent from my LG-H815 using Forums mobile app

[bmwman]

How is the VAT calculated? Is it 20% of the whole cruise fare? Or 20% of the menu prices of the drinks that I would have to pay if the drinks were not free?

 

B) Since the cruise fare is zero-rated, and all I have paid is a cruise fare, how can I be charged VAT at all?

 

Sent from my LG-H815 using Forums mobile app

 

Cruise fare is NOT Zero rated but VAT is operated on the TOMS( tour operators margin scheme). Drinks are not free they are part of the AI package price.

 

VAT is added to the drinks price it is a sales tax.

 

The VAT applies to the price paid for services on board.

 

As toy can guess this is a massive benefit for NCL now with the all inclusive package.

[samshltn]

You sound like you know what you're talking about. (

Cruise fare is NOT Zero rated but VAT is operated on the TOMS( tour operators margin scheme).

)

Teach me more about VAT on TOMS please?

 

Also... You say

The VAT applies to the price paid for services on board.

 

So if I don't pay for any services on board, how is the VAT calculated?

[Blondie008]

From previous experiences - the tax on AI drinks is charged at the appropriate rate for 14 nautical miles within said port.

The tax only applies to drinks consumed during that time. A lot of the bar tenders mention this to you when you are carding your drinks. Some remind you there is a port tax. But hey, how do we know what is 14 nautical miles ;p

On our last TA cruise with NCL I questioned the charges as this was something NCL failed to mention during the booking process. I was refunded all charges but this, as they said, was a one time gesture. Now we know. I am not sure if NCL have now got this in their booking terms - I am sure they will have and people who were refunded, were those who booked prior to it being written up in the T&Cs.

On other cruiselines, the line will just suck up the charges and not pass it on to the guest. Celebrity for sure do not charge the sales tax. Hence why I questioned it on NCL - I had been used to drinks packages being completely "inclusive".

So - just know that in various ports - you will pay tax on drinks consumed during the port stop, and within that said 14 nautical mile limit.

[Froggitt]

Whether VAT will apply on drinks consumed under a promo UBP or purchased UBP, or part of the new UK AI scheme......who knows.

[samshltn]

...the tax on AI drinks is charged at the appropriate rate for 14 nautical miles within said port...

 

Ah so it's 14 nautical miles? That's interesting. Do you have a source for that please?

 

Whether VAT will apply on drinks consumed under a promo UBP or purchased UBP, or part of the new UK AI scheme......who knows.

 

Ok, thanks for clearing that up.

[Blondie008]

Ah so it's 14 nautical miles? That's interesting. Do you have a source for that please?

 

 

 

 

 

 

 

Ok, thanks for clearing that up.

 

 

F&B supervisor on the Jade - although have heard varying mileage 14 seemed to be the most common answer - it apparently is auto charged on the terminals.

 

 

 

Sent from my iPhone using Forums

[samshltn]

... varying mileage ...

 

I'm getting way off topic here, but I've found the relevant Excise Notice for ships in UK territorial waters. The limit is '12 nautical miles to seaward from the baseline.'

 

However, it may be different in other countries. 12.... 14.... I don't really care.

 

But I'm still wondering: How do they charge 20% of something I haven't paid?!

[samshltn]

Update: NCL have replied to my query. Here's what they said (verbatim):

 

"Good afternoon,

 

Trust this email finds you well,

 

No VAT charged on sales of food and beverage or specialty restaurant cover charges

 

Best regards,

 

EU Guest Services"

 

So that's great news! No tax at all!!

[Blondie008]

Update: NCL have replied to my query. Here's what they said (verbatim):

 

"Good afternoon,

 

Trust this email finds you well,

 

No VAT charged on sales of food and beverage or specialty restaurant cover charges

 

Best regards,

 

EU Guest Services"

 

So that's great news! No tax at all!!

 

 

Yay!

Was that just Southampton or applicable to anywhere else?

[samshltn]

Well... The query I sent was "When sailing from Southampton on the Jade, 2 June, will VAT be charged on drinks served whilst in port and in Southampton Water?".

 

Sent from my LG-H815 using Forums mobile app

[Froggitt]

I wouldn't wager more than a shiny new twelve sided one pound coin that the answer given is correct, or that the answer given will be applied on that cruise.

[samshltn]

Oh I'm quite sure it's incorrect, Froggit. There are three contact centres that reply to NCL Europe emails: Southampton, Frankfurt, and Malta. This one looks like it has been written by Malta, which is generally a surefire sign that its factually bollocks.

 

However, if NCL have written to sat that they're going to be absorbing the VAT, then NCL are going to be absorbing the VAT.

 

Sent from my LG-H815 using Forums mobile app

[Froggitt]

factually bollocks.

:'):'):')

Yes indeed that email is a valuable piece of paper.

 

They sail ex-UK so infrequently, eg new build TAs, that the people on board forget the rules that applied previously, or haven't sailed ex-UK before. Plus the rules probably vary on a TA versus round Britain or intra-EU. And then you've got cash drinks, paid UBP, promo-UBP, Premium Inclusive.

 

Far too complex for NCL to get their little heads aroud.

[ighten]

Doesnt it also depend on where you made your booking

[samshltn]

Doesnt it also depend on where you made your booking

 

Well there'll still be tax to pay, regardless of where you made your booking and where you're from, etc. If you've got a deal with the cruise line that they're going to cover your tax, then that's between the guest and the cruise line. In this instance, it looks as though I've somehow got a deal with NCL that they're going to cover my tax.

[bmwman]

Well there'll still be tax to pay, regardless of where you made your booking and where you're from, etc. If you've got a deal with the cruise line that they're going to cover your tax, then that's between the guest and the cruise line. In this instance, it looks as though I've somehow got a deal with NCL that they're going to cover my tax.

 

I am glad everyone is challenging the advice from NCL. VAT WILL I repeat will or at least should be charged. It makes no difference where you booked your cruise if you pay for drinks as opposed to UBP there will be VAT.

 

In Europe we seal with "place of supply" and the place of supply is where the cruise departs from.

 

Think about it why the NCL answer makes no sense. You are invited on as a guest for the day. You buy a drink why would you not pay VAT. You would the ship is in the UK

 

VAT is complicated ( and a good earner) and I tend to trust my professional knowledge.

[bmwman]

I wouldn't wager more than a shiny new twelve sided one pound coin that the answer given is correct, or that the answer given will be applied on that cruise.

 

I would not wager an old one either :)

[samshltn]

VAT WILL I repeat will or at least should be charged.

 

I absolutely agree with you. Death and taxes are unavoidable. HM Revenue & Customs will very definitely be getting VAT on the drinks I consume whilst within the confines of the UK Territorial Sea.

 

And I'm very happy that NCL have decided to put in writing the fact that they're going to be absorbing that cost into my cruise fare rather than passing it on to me.

[bmwman]

You sound like you know what you're talking about. ()

Teach me more about VAT on TOMS please?

 

Also... You say

 

So if I don't pay for any services on board, how is the VAT calculated?

 

VAT is calculated on supplies of services in the UK

 

If you have paid an all in price from the UK then VAT would have been operated on that price usually with HMRC agreement for the split between fare and services.

 

If bought outside UK and AI then there is no supply in the UK and VAT will not operate. But if you buy (pay) on board whilst in Southampton (UK territorial waters) then VAT will apply. Simples (not)

 

Froggitt is correct

[bmwman]

Whether VAT will apply on drinks consumed under a promo UBP or purchased UBP, or part of the new UK AI scheme......who knows.

 

It will have been paid in the price probably with a high level agreement with HMRC fro how much that component is. I suspect this has been dealt with by what is know as the cross cutting team at HMRC who can reach individual agreements for UK PLC. They are based in the north of England and I understand have access directly to the Treasury . Powerful people!!

[ighten]

Thats what I meant - if you book a package or have it included with a UK booking (or the new all inc) you have nothing more to pay - the tax is included.