Rumor of 12% VAT to foreigners on Galapagos tour bookings

Sydney, Australia
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Rumor of 12% VAT to foreigners on Galapagos tour bookings
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Hi guys,

I have been made aware of the following situation by my tour operator; just wondering if anyone else is across this:

"There is currently a big rumour that the Ecuadorian Government will next year start charging 12% VAT tax to foreigners on tour bookings - at the moment only Ecuadorians pay this tax. All of the prices that we offer you now DO NOT include this tax because we do not want to charge it now because this information is not 100% confirmed. However we do want you to be aware of this possibility because in the case this law is approved the operators will add an extra 12% to their fee and thus we will also unfortunately have to charge you this difference. The silver lining to this situation is that foreigners can in theory reclaim the iva from the government – there is a stand at the airport when you leave the country to help process these reclaims. This is a new process so I cannot say if the process is easy or the % chance of success, but the government should refund your tax. We are sorry that this is a little confusing – our aim to always to be as transparent as possible with our clients so that you avoid any hidden charges / nasty surprises after booking – for this reason we wanted to let you know before you send us any money. The change will affect all travel agencies in Ecuador – most are not communicating this risk to their clients but it does not mean that they will not charge the tax if/when it comes."

Cheers

Edited: 6 years ago
Langley, Canada
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41. Re: Rumor of 12% VAT to foreigners on Galapagos tour bookings
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We are just on our return flight from our fabulous trip to Ecuador including Galapagos and Amazon. We did not have to pay vat on any of our prepaid fees including Galapagos cruise and Amazon stay all of which had final payments made a number of months ago.

Fort Lauderdale...
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42. Re: Rumor of 12% VAT to foreigners on Galapagos tour bookings
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Does this rumor is real? you mentioned that you did not pay for having paid the bills months ago. Can you clarify since 12% is a big amount of money. Thanks.

Toronto, Canada
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43. Re: Rumor of 12% VAT to foreigners on Galapagos tour bookings
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Our agent provides an option regarding this 12%VAT:

We will pay the ship 100% (inclu 12% VAT) and the agent will refund us the 12% portion.

We booked Sept trip and paid the deposit last year.

Anyone else has this option?

Ottawa, Canada
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44. Re: Rumor of 12% VAT to foreigners on Galapagos tour bookings
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Before paying any 12% tax, I would certainly want to receive evidence that it is required. There is a chance that some less scrupulous agents may be asking for it when in fact it is not yet required by law. I am booking people now on various ships via ship owners directly, and no one has yet indicated to me that tax is due. I would suggest that you ask you agent to put you in touch directly with the ship owner for confirmation.

Warmest regards,

Heather Blenkiron

Toronto, Canada
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45. Re: Rumor of 12% VAT to foreigners on Galapagos tour bookings
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This is received from our agent:

Dear Customers:

Yours sincerely all those who satisfied "Galapagos Journey Fleet". The reason of this is to inform urgently the new tax regulations established by the Ecuadorian Government through the Internal Revenue Service IRS.

According to tax regulations issued by the Internal Revenue Service of Ecuador (Art. 56 Internal Taxation Act), we inform you that from the day January 1, 2015, all invoices issued for Galapagos Cruise Yacht SEAMAN-JOURNEY, will be recorded with 12% VAT rate on the confirmed price. This will apply to all sales are those already confirmed, paid or new reserves.

We thank you very much for your understanding and reminding them that this decision by the authorities and is completely out of our jurisdiction.

Greetings.

Walter Luzuriaga.

Product and Sales Manager Galapagos

GALAPAGOS JOURNEY FLEET

Dear Customers:

Yours sincerely all those who satisfied "Galapagos Journey Fleet". The reason of this is to inform urgently the new tax regulations established by the Ecuadorian Government through the Internal Revenue Service IRS.

According to tax regulations issued by the Internal Revenue Service of Ecuador (Art. 56 Internal Taxation Act), we inform you that from the day January 1, 2015, all invoices issued for Galapagos Cruise Yacht SEAMAN-JOURNEY, will be recorded with 12% VAT rate on the confirmed price. This will apply to all sales are those already confirmed, paid or new reserves.

We thank you very much for your understanding and reminding them that this decision by the authorities and is completely out of our jurisdiction.

Greetings.

Walter Luzuriaga.

Product and Sales Manager Galapagos

GALAPAGOS JOURNEY FLEET

Fort Lauderdale...
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46. Re: Rumor of 12% VAT to foreigners on Galapagos tour bookings
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thanks for your tip. where are you located? I plan to travel to Ecuador and the islands in June. I won't book anything online since I wish to see the ship/boat and deal directly with the owner. how can I contact you?

Burnley, United...
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47. Re: Rumor of 12% VAT to foreigners on Galapagos tour bookings
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Just back. We didn't have to pay %12.

Rockville Centre...
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48. Re: Rumor of 12% VAT to foreigners on Galapagos tour bookings
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>> I won't book anything online since I wish to see the ship/boat and deal directly with the owner.

That's going to be a tough call. Presumably, each ship is in one of the harbors waiting to receive passengers, and you won't be able to see it (except from a distance) until you have booked space. Also, the owner may be anywhere -- perhaps on one of the inhabited islands, perhaps on the mainland.

Fort Lauderdale...
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49. Re: Rumor of 12% VAT to foreigners on Galapagos tour bookings
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Well, now I really do not know if I would to visit the islands. The trip itself is expensive adding all taxes and fees in out of the islands and now with that new burden, it becomes exorbitant to be there. I met a lot of travelers skipping the islands and visiting only the mainland.

Kansas
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50. Re: Rumor of 12% VAT to foreigners on Galapagos tour bookings
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Seliyakim - skipping the islands and staying on the mainland would be the equivalent of staying in New Jersey and skipping NYC.

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