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"CRUISE firms operating in Europe must include value-added tax for on-board sales even if they have a non-European port of call in their itinerary, according to the European Commission."
This will be a HUGE downer for all those mini trips to the Channel Islands, and for Med Cruises. It used to be Malta, and now it is La Goulette, Tunisia.
I can see many lines changing their itineries to include a 2nd non- European Port. This is daft & will be detrimental to the cruise business for European [EU] Ports, not a bonus for the VAT coffers imho.
What do others think? I cannot find this on the EU website yet, it will probably appear sometime.
Pam
Almost as non-sensical as our Jones Act, which forces the cruise companies to include a '' non-USA'' port of call when sailing from/back to US ports. Most of these stops are not necessarily an attraction by themselves and often last just a few hours anyways...and still add a cost to the itineraries that is borne by....you guessed it;; the cruising public....again !!!
CheersCG
I would love to visit Libya. All last seasons calls were suring school term times, I hope this year may be different. A cruise completely covering the Southern Med from Istanbul to say the Canary Islands would be great.. anyone listening?
In fact, MSC may already be in that situation - aren't they Swiss-based? (Switzerland isn't in the EU, of course.)
quote:Tom Burke wrote:In fact, MSC may already be in that situation - aren't they Swiss-based? (Switzerland isn't in the EU, of course.)
MSC Crociere is Italian with an head office in Naples. Its parent Mediterranean Shipping Company is Swiss with head office in Geneva.
******
Cheers
But in the case of an onboard expenditure, are you actually in the EU at the moment of the expenditure? I suppose the lines have always argued that since they definitely entered non-EU waters at some point, they'd have to split the sales into 'those occurring in the EU' and 'those not occurring in the EU', and levy VAT on the former but not the latter. This would be very cumbersome and confusing to the passengers, which is why they've probably got away with it heretofore.
What is the UK VAT treatment on holidays? I know travel is VAT-free, but I'm not sure about holidays. I suspect they're also VAT exempt. But I suppose ancillary purchases aren't.
quote:Originally posted by Tom Burke:This is why eBay, Amazon.co.uk, etc, all have to charge VAT: the expenditure takes place in the UK and the vendor is also in the UK (or another EU country).But in the case of an onboard expenditure, are you actually in the EU at the moment of the expenditure?
But in the case of an onboard expenditure, are you actually in the EU at the moment of the expenditure?
Yes, that is what the ruling is. Cruise ships at present have to charge VAT if they are sailing a round trip between EU ports; but if they call at one non-EU port, as MSC, OV, Costa, Pullmantur etc all do, they are deemd to be sailing outside the EU and do not have to charge VAT on sales for the whole cruise. Now TPTB are saying one non-EU port is not enough, and they will be deemd for VAT purposes to be sailing within EU jurisdiction. So 2 ports ex-EU will be required.
I have not been able to find the whole ruling, only going on the headline from Lloyds. No doubt something further and more explanatory will appear in due course.
I don't think you could do a 'split' it would be too onorous to carry out and 'police'.
I have no idea about holidays and I'm not going to read the VAT guides it would take forever more!
I now quit political forgive me greetings Ben.
quote:Originally posted by Tom Burke:Hmm - I wonder if it applies to US-based companies? eg, NCL.
[ 01-12-2006: Message edited by: HKcruises ]
quote:Originally posted by Maasdam:A nother stupid idea frome Brussel. It's better to quit with the EC. They are nothing thene a bunch of burocrates with nothing to do thene make the next stupid law.I now quit political forgive me greetings Ben.
I think we should leave politics aside. This is a cruising forum, not an EU bashing one.
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