Soft Drink Taxes

[mcrcruiser]

Not only Holland America but other cruise lines will apply a sales tax if they are not past the 12 mile limit from shore .  We understand this ;however ,how can they charge a tax   near to  a foreign port ? This makes no sense to us because how can the foreign port  enforce the tax  on any cruise ship ?

 

Also why doesn't this tax apply to any beverage sold

Edited May 8, 2023 by mcrcruiser

[Mary229]

They charge sales tax according to local regulations 

[mcrcruiser]

24 minutes ago, Mary229 said:

They charge sales tax according to local regulations 

yes we are aware of that fact ; but how can a foreign  country be sure they will get that tax  .Here in the USA the cruise lines corporate offices are based  here which make a difference . Just curious abut foreign ability to collect the tax from any cruise line .

[Mary229]

Just now, mcrcruiser said:

yes we are aware of that fact ; but how can a foreign  country be sure they will get that tax  .Here in the USA the cruise lines corporate offices are based  here which make a difference . Just curious abut foreign ability to collect the tax from any cruise line .

Here in the states it is the same.   The feds do not assist in sales tax collection.  
 

What has happened is various local jurisdictions have passed laws concerning cruise ships and sales taxes while in port.   If a cruise ship wants to continue arriving at the port they need to pay their taxes.
 

 One advantage to cruise critic is we are in the know and can avoid ordering .

[mcrcruiser]

BTW after paying that tax  we now wait until the ship is far out from any land to avoid the  taxes ,all the shops close with in the 12 mile limit here i the USA  &  in foreign ports to avoid selling with taxes . Another interesting fact is if you win over 1200 less the bet  the cruise line reports that to IRS  but ,how does a person claim their losses 

[Mary229]

PS.  As a person who operated in 8 states I know that the tax authorities do indeed come around to review invoices and make sure you are paying your fair share .  If you want to operate in a state you need to obey their laws. 

[mcrcruiser]

2 minutes ago, Mary229 said:

Here in the states it is the same.   The feds do not assist in sales tax collection.  
 

What has happened is various local jurisdictions have passed laws concerning cruise ships and sales taxes while in port.   If a cruise ship wants to continue arriving at the port they need to pay their taxes.
 

 One advantage to cruise critic is we are in the know and can avoid ordering .

 

Yes you beat me to the punch LOL

[RD64]

You have just spent $1000’s of dollars on a cruise and now an extra few dollars (or less) is so traumatic?

[Laminator]

As for the taxes on soft drinks. Who cares about 20 cents or whatever. Let the accounting department handle it. 

Edited May 8, 2023 by Laminator

[AFNavigator]

4 hours ago, RD64 said:

You have just spent $1000’s of dollars on a cruise and now an extra few dollars (or less) is so traumatic?

Get a drink off the ship and you likely will be paying much more for the drink itself, plus tax, than the in-port cost on the ship.

Mirroring RD64's statement, you spent thousands of dollars on your cruise and you're going to quibble over a few dollars--at the most--in tax over the week?. Enjoy your vacation and have that drink!

 

[Laminator]

I have to add this. This is the conversation I am visualizing. "Honey can you get me a diet coke please." "Sorry Dear I can't because they will charge us 10% sales tax on the $2.50 drink. That is going to cost us an extra .25 cents." And the next thing out of my wife's mouth will be how much do you think a divorce will cost you. Anyone who frets over this should stay home. 

 

[RD64]

13 hours ago, mcrcruiser said:

Not only Holland America but other cruise lines will apply a sales tax if they are not past the 12 mile limit from shore .  We understand this ;however ,how can they charge a tax   near to  a foreign port ? This makes no sense to us because how can the foreign port  enforce the tax  on any cruise ship ?

 

Also why doesn't this tax apply to any beverage sold

NCL had issues with this in Greece last year, and some Italian ports currently. They are unable to sell any alcoholic beverages - other than beer or wine - while the ships are in port. Although there is no confirmation as to the reason why, I would assume that it has to do with the collection (or failure to collect) a tax on drink sales by the cruise line.

 

At the end of the day - foreign country - their game - their rules if you want to play.

Edited May 9, 2023 by RD64
Additional

[Sherbertscamper]

So until the ship is out 12 miles, we still pay the state tax on any drinks?

Thanks  for the info! 
As previously stated, it will not stop us from getting a drink, but I do like to keep track of our charges!

[WriterOnDeck]

Also, if you are sailing out of Fort Lauderdale, don't be so quick to buy that wine package (or I presume beverage package) until the ship has left the port for international waters. A quarter on a soda is one thing, but the tax on a $200+ wine package is another.

[Mary229]

24 minutes ago, Sherbertscamper said:

So until the ship is out 12 miles, we still pay the state tax on any drinks?

Thanks  for the info! 
As previously stated, it will not stop us from getting a drink, but I do like to keep track of our charges!

I think the state limit is 3 miles 

[Sherbertscamper]

Thanks!

[kurtmi03]

We've bought a few wine packages while still docked in FLL and never paid any tax. This may have something to do with the tickets being handwritten and by the time they are entered into the computer you are well past any mileage limit.

[CHOPPERTESTER]

Even if not in "state" or "local" waters other taxes can apply and they may not be insignificant.

 

Google Spanish VAT for closed loop cruises from Spanish ports when one of the port stops does not include a non-EU country.

 

[Thetideishigh2021]

Interesting, how does it work with HIA or any pre-purchased drink packages?  I would think it would be tedious to estimate taxes and then roll it into the HIA cost.

 

[Despegue]

4 hours ago, kurtmi03 said:

We've bought a few wine packages while still docked in FLL and never paid any tax. This may have something to do with the tickets being handwritten and by the time they are entered into the computer you are well past any mileage limit.

This is exactly what is done. You do NOT put the sale in until 12nm out. 

[CruiserBruce]

This has discussed a little bit recently. It appears HAL is picking up the taxes in this sort of situation. 

[Mary229]

34 minutes ago, Despegue said:

This is exactly what is done. You do NOT put the sale in until 12nm out. 

Sales tax is 3 miles