Key Aspects:
- Norwegian reminds guests about onboard taxes based on where cruises start and sail, including VAT and sales tax.
- Spain and Italy have strict tax rules, with up to 22% VAT on retail and 10% on food and drinks.
- Passengers have reported surprise charges, prompting the cruise line to post reminders on ships.
Passengers setting sail with Norwegian Cruise Line in Spain and Italy in the coming months may want to take a closer look at their onboard purchases.
The cruise line has issued a notice reminding guests and travel advisors that Value Added Tax (VAT) and sales tax may apply to some items during sailings, depending on where a ship is located and where the cruise begins.
The tax charges will primarily affect food, beverage, and retail purchases made onboard in countries like Spain and Italy, but the reminder also includes sailings in US ports.
The cruise line noted that VAT is not added to the total cost of pre-purchased beverage or dining packages. Instead, it’s charged per item consumed – but only when required by local laws.
“VAT is something you might see applied during your cruise, but only when you enjoy food or drinks on board in specific destinations,” Norwegian Cruise Line stated in a letter dated August 5, 2025.
The cruise line is asking travel partners to communicate this information to guests so they aren’t caught off guard by added charges.
The notice follows complaints from passengers who didn’t know a VAT was in place until it was time to settle their accounts.
Said one passenger, “Just came off mine, Barcelona to Barcelona. $511 tax bill. We weren’t informed until boarding.”
How VAT and Taxes Apply
Value Added Tax is a consumption tax and unlike a single sales tax is collected as the product moves through the supply chain, with customers paying the final cost.
VAT is governed by national tax authorities, which is why Spain and Italy have different rules than say, France. Spain, for example, is known to have some of the strictest VAT rules.
This is why tax rates and rules for VAT and certain taxes vary based on embarkation port, destination countries, and whether a sailing remains within the European Union (EU) or leaves its boundaries.
If a cruise starts in Spain, for example, and includes at least one port outside of the EU, a 10 percent VAT applies to food and beverage purchases while the ship in in Spanish ports or sailing within Spanish territorial waters.
However, if the cruise begins in Spain and does not leave the EU, two different VAT charges apply throughout the entire voyage: a 21 percent VAT is added to all retail purchases made onboard, and a 10 percent VAT applies to food and drink orders and remain in place for the full cruise.
But if guests are on a cruise to Spain that originated from a port outside of Spain, a 10 percent VAT is applied on food and drink while in Spanish waters or docked at Spanish ports.
Read Also: How to Save Money on a Cruise: Cash-Savvy Spending Tips
In Italy, guests on cruises that stay within the EU will be charged a 22 percent VAT on retail purchases for the duration of the sailing.
Meanwhile, in the US, standard sales tax will be applied to food and beverage purchases made while the ship is in US ports or territorial waters.
For passengers with purchased packages such as the “More at Sea Beverage Package,” the taxes aren’t added upfront.
Instead, VAT is applied individually to each drink or meal item consumed during times and locations when the applicable tax is in effect.
If this sounds extremely confusing, it is. Which is why Norwegian Cruise will now display signage and daily reminders when taxes are being added.
