Any foreign Tax (VAT) experts around ?

coupleuk

I dont need to - Im not debating it.

My original question related to Spanish IVA being charged on ships departing Spain but also in non Spanish waters.

It then went on to consider that UK VAT is not charged on ships departing the UK and then in non UK waters.

As all the Countries visited are in the EU, surely the same taxation rules apply throughout.

But, my question still relates to Spanish IVA.

Owain_Moneysaver

coupleuk wrote: »

I dont need to - Im not debating it.

Well, you started the thread!

coupleuk wrote: »

It then went on to consider that UK VAT is not charged on ships departing the UK and then in non UK waters.

How do you know that VAT is not charged on ships departing the UK? Because it won't be itemised separately on the pricelist if it is. That's UK law relating to the display of prices. Whether the price is shown in £ or $ makes no difference. UK prices on display must include VAT.

Owain_Moneysaver

Or it could be that the ship is doing a scam and keeping the 8% "Spanish VAT"

tooldle

Cruises from Southampton will charge VAT, if the business operating the outlet is registered for VAT in the UK. VAT is charged as long as the cruise stays within the EU. If the cruise is to go outside the EU, if only for part of the trip no VAT is chargeable on the whole trip, as I understand it.
If the company running the bars etc on the cruise ship is registered in Spain, with a Spanish VAT number, then they would be correct to charge 8% on drinks etc throughout the journey. This is I believe a reduced rate, the standard rate being 18%?
My understanding is that there is now a standardisation across the EU of these rules, to make it clearer what should be charged and where.

coupleuk

Thanks for that clearer answer.

The bars etc are owned and operated by the Cruise Company, with head office in Miami and the ship registered in the Bahamas.

iceburn

@Coupleuk what has been described to u is the answer. I will try and explain it in a different way so hopefully u can see it

over 10 years ago EU abloished the FREE duty on cruise ships whilst in EU waters. So for example no more going on a ferry between dover and calais and once out of "UK" water can get tobocca / wine without duty/vat.

Now to keep "computer systems - EPOS", display etc simple lot of cruise ships have the same price round the world. Like in your case say a bottle of coke for $2.4 That will be there base currency, and probably use the most expensive price it will cost them to provide it, (like a bottle of coke cost differently in different parts of the world.) Now as Owain said, what they do next is as follows.

when they need to charge VAT cause their initial port (and ship is registered in UK) is UK, they deduct 20% off the price after they charge u $2.4 and give that to the UK customs and excise. They have to do this no matter where that ship than goes, ie can goto France, spain, italy, etc..

Whilst for their other ship which leave initally from Spain (or registered in Spain) , they charge you 8% on top of your $2.4 and give that tax to the spainish govt.

Now u might wonder why do all that, it is to keep it simple and avoid extra accounting / EPOS costs, and also in UK situation, they do not give customs and excise the whole 20% VAT, since they do what call off-setting. Since they can claim VAT off fuel they buy at the port, stock, etc.. This is getting into complex accounting area (and reason why the shipping companies just have one price cause having what can be claim and not is bad enough, do not want to add more by changing prices.)

tooldle

A lot of on board outlets are concessions, be they retail, food and drink, spas etc.