Pride of America - Hawaii Cruise Gratuities

[eiloo]

This may be a matter of semantics.  In my NCL.com account, I can pre-pay my gratuities and there is a GET tax to pay in Hawaii.  

 

"The convenience of pre-paying service charges allows you to plan your budget prior to your cruise giving you additional freedom while on board. A discretionary charge of $15.64 USD per person per day for all guests 3 years or older will automatically be added to your onboard account. Your service charges will total $437.96 USD for all guests, for your entire cruise. Guests sailing to Hawaii will be charged an additional 4.275% Pre Paid Service Charge GET Tax "

 

I'm trying to figure out is the GET Tax because I'm pre-paying the gratuities?  i.e. it would be $15.00 pp/pd if I let the ship add it to my onboard account?  Or would it still be $15.64 pp/pd even on the ship too?

[snow1]

We are on POA in November   I have made final payment, but did not pre pay our service charge.  I just checked our confirmation and it lists  GET Tax of $113.12 per person already included in our Booking Component section.    So, to answer your question, you pay it upfront whether you pre pay service charges or not.  One thing has nothing to do with the other.....just more money they collect !

Edited July 26, 2019 by snow1

[smplybcause]

It looks like Hawaii has a GET instead of the state tax most other states have. Their state website says it's on "all business activities" and the business can decide whether to pass it on to their customer or not. I would think that it would be charged on everything (ie all services) - not just the cruise fare. https://tax.hawaii.gov/geninfo/get/ 

 

 

[chengkp75]

Hawaii uses a "general excise tax (GET) in place of sales tax.  Since the ship sails exclusively in Hawaii, the GET is charged to NCL on everything from the cruise fare to drinks and services.  As most businesses do, they pass the GET on to the consumer, and it does not need to be "broken out", but can be included in the sales price.

[erdoran]

I thought the whole point of DSC was for preferential tax treatment since it’s being positioned as a gratuity rather than a taxable service charge? Which is why it is still (supposedly) optional rather than rolled into cruise fare?

[chengkp75]

56 minutes ago, erdoran said:

I thought the whole point of DSC was for preferential tax treatment since it’s being positioned as a gratuity rather than a taxable service charge? Which is why it is still (supposedly) optional rather than rolled into cruise fare?

No, the whole point of DSC is that the cruise line can use this as a means to make the crew work together to ensure the full DSC is met, while shifting the blame for any reductions on to the passengers.  The cruise line gets credit for the "carrot", while the passengers wield the "stick".  And, in the US, with the US crew on the POA, gratuities are taxable just as simple income.

[eiloo]

I didn't mean to get people to debate about this.

I was wondering if I were to wait for the cruise to start and have the ship add the DSC to my onboard account, would that reduce the 4.275% tax payable, so I would only be paying $15/pp/pd.

 

The way I read this: Guests sailing to Hawaii will be charged an additional 4.275% Pre Paid Service Charge GET Tax is that I'm paying the GET tax for the privilege for prepaying.

[chengkp75]

1 hour ago, eiloo said:

I didn't mean to get people to debate about this.

I was wondering if I were to wait for the cruise to start and have the ship add the DSC to my onboard account, would that reduce the 4.275% tax payable, so I would only be paying $15/pp/pd.

 

The way I read this: Guests sailing to Hawaii will be charged an additional 4.275% Pre Paid Service Charge GET Tax is that I'm paying the GET tax for the privilege for prepaying.

No, the GET has nothing to do with prepaying or not. GET will be charged on your entire cruise cost, the fare, the DSC, and any onboard purcases.

[don't-use-real-name]

Questions - applications - clarification - - -

 

In effect the GET would be the last line on the invoice after everything is tallied up ?

 

One could allocated funds to pay the GET - the exact amount unknown until disembarking ?

 

The final bill after buying any services gifts shore excursions alcoholic drinks would not be known until leaving the POA.

 

The DSC is a fixed amount and can be prepaid - paid on board or deferred to a credit card.

As noted the DSC is separate from the GET.

If prepaid pre-cruise could it be taxed ? Paid on board taxed & added to the final bill ?

 

There is no Casino on the POA or Duty Free so there would be no charges from that source.

 

 

 

[chengkp75]

5 hours ago, don't-use-real-name said:

Questions - applications - clarification - - -

 

In effect the GET would be the last line on the invoice after everything is tallied up ?

 

One could allocated funds to pay the GET - the exact amount unknown until disembarking ?

 

The final bill after buying any services gifts shore excursions alcoholic drinks would not be known until leaving the POA.

 

The DSC is a fixed amount and can be prepaid - paid on board or deferred to a credit card.

As noted the DSC is separate from the GET.

If prepaid pre-cruise could it be taxed ? Paid on board taxed & added to the final bill ?

 

There is no Casino on the POA or Duty Free so there would be no charges from that source.

 

 

 

Yes, the GET would be the final line on the invoice, a tax on all goods and services.  If the DSC is pre-paid pre-cruise, it will still be taxed, just as the cruise fare itself is taxed when paid pre-cruise, as you are dealing with the Honolulu based US subsidiary of NCL.

[esm54687]

On 7/26/2019 at 4:02 PM, snow1 said:

.....just more money they collect !

Slow down.......... this is not an NCL charge. They are not collecting it for their use.   They collect it and pass along to the local government entity who is charging it. This is similiar to paying a sales tax on your beverage while in a US port or a VAT in a European port.....  even if you have the PBP / PPBP

[WrittenOnYourHeart]

It may be the early hour, but I am confused...

 

Is this something that is included in your cruise payment and so taken care of before you set sail? Or something that you get hit with as additionally owed at the end of the cruise?

[electro]

On 7/28/2019 at 5:50 AM, chengkp75 said:

Yes, the GET would be the final line on the invoice, a tax on all goods and services.  If the DSC is pre-paid pre-cruise, it will still be taxed, just as the cruise fare itself is taxed when paid pre-cruise, as you are dealing with the Honolulu based US subsidiary of NCL.

So will I be paying the tax on each drink even with the drink package?

[laurabegorrah]

34 minutes ago, electro said:

So will I be paying the tax on each drink even with the drink package?

 

If I am understanding correctly, the GET tax will be changed along with the other taxes associated with the UBP (whether you are paying full price or getting as a booking perk).  It would not be changed per drink, since you have already paid for those drinks and all associated taxes before hand.  

[chengkp75]

2 hours ago, electro said:

So will I be paying the tax on each drink even with the drink package?

No, the GET will be paid on the package price.

[smplybcause]

5 hours ago, WrittenOnYourHeart said:

It may be the early hour, but I am confused...

 

Is this something that is included in your cruise payment and so taken care of before you set sail? Or something that you get hit with as additionally owed at the end of the cruise?

 

The GET that is charged on your cruise payment is included when you pay your cruise payment. My guess is it's with all the other taxes & fees as that is higher for POA sailings that others. But everything is charged the GET, so anything charged to your on board account (like excursions, DSC, souvenirs) will also have GET added to the cost. Which is why DSC charges are $15.64pppd and not $15pppd on all other NCL ships. 

 

Seems like the easiest way to think of it is like a sales tax - NCL will just add it to whatever you purchase when you purchase it. 

[WrittenOnYourHeart]

Just now, smplybcause said:

 

The GET that is charged on your cruise payment is included when you pay your cruise payment. My guess is it's with all the other taxes & fees as that is higher for POA sailings that others. But everything is charged the GET, so anything charged to your on board account (like excursions, DSC, souvenirs) will also have GET added to the cost. Which is why DSC charges are $15.64pppd and not $15pppd on all other NCL ships. 

 

Seems like the easiest way to think of it is like a sales tax - NCL will just add it to whatever you purchase when you purchase it. 

 

Got it. Thanks!

[julig22]

Does anyone know how the GET is figured on other ships - I booked a Tahiti to Hawaii cruise on the Jewel and the amount for the prepaid DSC is WAY more than the regular DSC plus 4.17% of my cruise cost- plus, we are only in Hawaii for 4 days, not the entire cruise.  I'm not planning on paying in advance but I'm curious as to how they arrived at the figure they gave me ($461 on a 14 day cruise that costs about $2,300, including airfare).  Are they estimating what they think a person will spend on excursions when they calculate the amount?