Tax on onboard purchases on transatlantic cruises

[iona]

I know that merchandise, alcoholic drinks, etc are more expensive on European cruises because tax is charged. Is that the same for the west-bound transatlantic seeing as that originates in Europe? How about the east-bound one?

 

[happycamper47]

Either way taxes (if any) should only be charged until you reach International water (12 miles out). It's not based on the Port of origin.

 

[LAS2AMS]

I’m shocked at how many people think this. We just got off the WBTA. The evening before we reached our first port in Portugal, there was a frenzy of passengers buying in the shops because they heard hefty European taxes were about to be added to purchases.

As the previous poster pointed out, taxes are charged only when the ship is in or near the port. This is why shops are closed… typically, only food, beverage and services are available for purchase and these are often exempt from local taxes. We bought a cupcake and some drinks while the shop was in Spain and no taxes were added.

I’ve been to a lot of ports and most don’t levy tax on food/ beverage/ services. The only one I can think of is Miami.

 

[Geomom]

I believe the VAT is added for cruises entirely in the EU, rate based on departure port. I know people have had it added to Mediterranean cruises. We did not have VAT on our Baltic Sea and Norway cruises.

 

[Kwami]

I’ve been to a lot of ports and most don’t levy tax on food/ beverage/ services. The only one I can think of is Miami.

I took a cruise out of NYC last month and coffee cost me more in port than at sea. So, NYC seems to charge tax on drinks, too.

 

[Mommb]

I believe the VAT is added for cruises entirely in the EU, rate based on departure port. I know people have had it added to Mediterranean cruises. We did not have VAT on our Baltic Sea and Norway cruises.

This is my understanding as well. Mediterranean cruises to Spain, France, Italy, and Greece would have the European VAT. Cruises from or stopping in Southampton do not, because the United Kingdom is no longer in the EU. Transatlantic cruises similarly do not charge VAT.

 

[cwis]

For reference, there was no tax on this year's EBTA.

 

[LAS2AMS]

I believe the VAT is added for cruises entirely in the EU, rate based on departure port. I know people have had it added to Mediterranean cruises. We did not have VAT on our Baltic Sea and Norway cruises.

This is my understanding as well. Mediterranean cruises to Spain, France, Italy, and Greece would have the European VAT. Cruises from or stopping in Southampton do not, because the United Kingdom is no longer in the EU. Transatlantic cruises similarly do not charge VAT.

Your cruise fare includes all applicable taxes. But anything you purchase while onboard the ship that was not prepaid is subject to taxation. Most purchases are done in international waters, so they’re duty (tax) free. However, purchases at port/ within its legal jurisdiction are subject to tax. As I mentioned earlier, this is why shops don’t open until the ship is in international waters. But drinks, food and spa services are sold in ports and tax is added to these purchases if lawfully required. As I mentioned earlier, most ports don’t tax these items but some - MIA, NYC, etc. - do (at least food and beverage).

 

[LAS2AMS]

For reference, there was no tax on this year's EBTA.

It looks like Florida requires sales tax on alcohol purchases, so if you purchased drinks while the ship was at or near Port Everglades, you would’ve paid the tax. If you weren’t charged, Disney paid it for you.

Spain didn’t charge but Portugal may have.

 

[cwis]

It looks like Florida requires sales tax on alcohol purchases, so if you purchased drinks while the ship was at or near Port Everglades, you would’ve paid the tax. If you weren’t charged, Disney paid it for you.

Interesting. My first bar check was on embarkation day at 4.43pm. We were still in port, and it shows no taxes.

 

[Kwami]

Interesting. My first bar check was on embarkation day at 4.43pm. We were still in port, and it shows no taxes.
View attachment 863075

It might just be included in the price. That's what happened with my coffee in NYC.

 

[European]

I’m shocked at how many people think this. We just got off the WBTA. The evening before we reached our first port in Portugal, there was a frenzy of passengers buying in the shops because they heard hefty European taxes were about to be added to purchases.

As the previous poster pointed out, taxes are charged only when the ship is in or near the port. This is why shops are closed… typically, only food, beverage and services are available for purchase and these are often exempt from local taxes. We bought a cupcake and some drinks while the shop was in Spain and no taxes were added.

I’ve been to a lot of ports and most don’t levy tax on food/ beverage/ services. The only one I can think of is Miami.

If you just got off, wasn’t it the EBTA?

 

[cwis]

It might just be included in the price. That's what happened with my coffee in NYC.

That's not what Disney Cruise Line is usually doing.

See for example a Palo Brunch during a Mediterranean cruise last year, where VAT was applied during the voyage. It makes sense for accounting purposes I guess.

 

[Kwami]

That's not what Disney Cruise Line is usually doing.

See for example a Palo Brunch during a Mediterranean cruise last year, where VAT was applied during the voyage. It makes sense for accounting purposes I guess.
View attachment 863093

Fair enough. My experience last month was with a different cruise line, unfortunately.

 

[LAS2AMS]

In

Interesting. My first bar check was on embarkation day at 4.43pm. We were still in port, and it shows no taxes.
View attachment 863075

Tons of postings on CC indicate that other cruise lines have levied tax on drink purchases made while ships were in port. On Royal Caribbean blog, somebody asked why they were charged sales tax on a drink in Port Everglades given they had the drink package, and the response was that the State of Florida levies tax on all drink purchases; prepaid drink packages are assessed tax based upon the value of the drink.

I didn’t buy alcohol in Port Everglades on my cruise but if you did and weren’t charged sales tax then. DCL covered the charge for you.

Is there any instance of DCL charging sales tax on drink purchases while in port? Disney may just eat the cost since it’s so trivial.

 

[gotomu212]

I’m shocked at how many people think this. We just got off the WBTA. The evening before we reached our first port in Portugal, there was a frenzy of passengers buying in the shops because they heard hefty European taxes were about to be added to purchases.

As the previous poster pointed out, taxes are charged only when the ship is in or near the port. This is why shops are closed… typically, only food, beverage and services are available for purchase and these are often exempt from local taxes. We bought a cupcake and some drinks while the shop was in Spain and no taxes were added.

I’ve been to a lot of ports and most don’t levy tax on food/ beverage/ services. The only one I can think of is Miami.

This is not completely accurate. Ships that depart and return from and travel only in EU ports will have a VAT charge added to every sale and service sold during the cruise. The Med cruises that depart roundtrip from Barcelona and go to Italy are the most common example for DCL. The VAT applies for the duration of the cruise and does not matter if you are in international water or not. You can claim a VAT waiver if you meet all requirements when departing Europe at the end of your trip. Here’s a common letter DCL hands out on those cruises:

https://disneycruiselineblog.com/wp...6/European-Union-VAT-Information-May-2018.pdf

As your transatlantic cruise departs or arrives in the US it is not subject to VAT. A lot of cruises that do a EBTA back to back with the first Med cruise (when offered) will purchase souvenirs the first leg to avoid the VAT on their second wholly Med cruise.