How is Brazil’s VAT Tax Charged on on FAS?

[Mandalay5]

I understand that Brazil charges a 25% VAT tax on purchases at ports or in ‘their’ waters. Can anyone tell me from experience how this works with FAS? Tax on drink value like at US port or on the “over $15” amount? Tax on the value of a free meal? Shore excursions? Any info appreciated!

[graphicguy]

I'm guessing as I've not sailed in Brazil, but have out of ports that charge a tax on drinks while in port.  I think it's a set amount (like the $15/drink you referenced).

 

25% is hefty, but if that's the rate, hard to get around it.

 

So, 25% of $15 would be $3.75/drink.

[Ladyshopper23]

This was our experience on the Star last November whilst sailing in Brazillian waters - if you had a drinks package, no extra tax was charged on any drinks. Everything else bought on the ship including in the shops had the 25% added. No prior warning, so if you didn't know it was coming (we didn't, but it wasn't a problem) and had been saving buying things from the shops until the end of the cruise, you'd have been in for a shock!

We also sailed in Spanish waters during the same cruise (a transatlantic) and the 10% tax WAS charged on every drink, even if you had a package.

[Mandalay5]

@Ladyshopper23 that was exactly the info I was looking for-thank you! Since the bulk of this sailing is in Brazil, that would be add up quickly for sure.

[Ladyshopper23]

22 minutes ago, Mandalay5 said:

@Ladyshopper23 that was exactly the info I was looking for-thank you! Since the bulk of this sailing is in Brazil, that would be add up quickly for sure.

Can't guarantee it will be the same now - I think we all know NCL can be a little inconsistent! But having been charged the 10% in Spanish waters, we were certainly grateful that the 25% in Brazilian waters didn't apply to us in relation to drinks we got with the drinks package. My husband did buy what turned out to be a very expensive Starbucks onboard though in Brazilian waters - he didn't make the same mistake again! 🤣

[TrippleP]

On 9/14/2023 at 7:49 AM, Ladyshopper23 said:

This was our experience on the Star last November whilst sailing in Brazillian waters - if you had a drinks package, no extra tax was charged on any drinks. Everything else bought on the ship including in the shops had the 25% added. No prior warning, so if you didn't know it was coming (we didn't, but it wasn't a problem) and had been saving buying things from the shops until the end of the cruise, you'd have been in for a shock!

We also sailed in Spanish waters during the same cruise (a transatlantic) and the 10% tax WAS charged on every drink, even if you had a package.

Hi Ladyshopper23, was that 10% in Spanish waters charged in the Canaries? TIA

[Ladyshopper23]

3 hours ago, TrippleP said:

Hi Ladyshopper23, was that 10% in Spanish waters charged in the Canaries? TIA

No it wasn't, just Spanish mainland.

[TrippleP]

@Ladyshopper23, do you remember how far from the coast they had to impose this VAT? Did they make a differentiation of “territorial waters” versus “international waters” on whether to charge the VAT or not?

[Ladyshopper23]

16 hours ago, TrippleP said:

@Ladyshopper23, do you remember how far from the coast they had to impose this VAT? Did they make a differentiation of “territorial waters” versus “international waters” on whether to charge the VAT or not?

I'm afraid I can't remember.