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Vat Tax

I am confused about the Vat tax. We are renting a car in Spain and there is a vat tax that is exluded from the given rates. I don't want to be paying more than I want to when I pick my vehicle up, is the 16% Vat tax just 16% of the total price? And what is necessary to receive a Vat tax refund? Thank you!!

Posted by
23626 posts

The VAT tax is a complicated game. I pretty sure that the VAT is NOT refundable on items consumed in the country such as meals, hotel rooms, etc. Only on items you carry out of the country. Unless there is a special exemption for car rentals, I would assume that tax would not be refundable.

Posted by
4555 posts

It's a charge upon the rental of your car and whatever else you include, like extra insurance, car seats, extra driver charges, etc. Since a car rental is a service, it's not eligible for any VAT refund.

Posted by
3313 posts

I don't think I would rent from a company that does not include the VAT in their basic rates. CDW is a legitimate separate charge, but the VAT is an inescapable cost. So it shouldn't be excluded from a rate offer. As the other posters said, when you rent a car, you're using the services in Europe. You can't get a refund of the VAT.