This question has been answered on this page already. Go down to White of Tiptree's entry......Wilba.
Nobody seems sure on this matter but it is my belief that the cruise section together with the port charges etc are outside the remit of British VAT and therefore there was no VAT charged. The only bit where VAT is chargeable is on the agents commission and that when you think about it is not huge so taking 2.1% off that and redistributing it is going to cost more than the refund so I don't think that you will see anything. Just sit back and be grateful that cruise prices are coming down during this recessionary period and don't worry about the small beer from the Chancellor. I must add that this is only a personal view and I could be wrong, it has happened before. .......Neil.
If you look down about 10 questions you'll find there is already a thread about this question......
Come on people look before posting.
Leaving aside the issue of whether and to what extent UK VAT is chargeable on the elements of a cruise holiday package (and that may depend upon whether cruise is within the EU), where the 'tax point' is before 1.12.08, VAT will be charged at the old rate of 17.5% regardless of holiday date. The 'tax point' can be triggered by several things but, within the context of this question, the most relevant will be the payment of any part of the holiday cost, e.g. a deposit. So, any deposit paid before 1.12 will include VAT (if any) at 17.5% and whatever is paid on or after 1.12 will be subject to the 15% rate. But the operator might not give a discount equivalent to the VAT reduction if the overall price is treated as fixed. My suggestion is just to wait and see what reduction, if any, might materialise and you might find it enough to buy one more expensive drink on board!
Effectively, there will be no refunds!
The answer from Fred Olsen re a cruise from UK is: Thank you for your email but VAT is only payable on fly cruises so you would have paid no VAT at time of booking.