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VAT exemption issue with Advance Purchase rates

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VAT exemption issue with Advance Purchase rates

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Old Dec 7, 2017, 10:58 pm
  #1  
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Join Date: Aug 2011
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Angry VAT exemption issue with Advance Purchase rates

There's a holiday sale AP rate I booked with Hilton Buenos Aires. However, the rate I was charged included VAT (21%!), even though Hilton's site explicitly stated that foreigners are exempted from VAT. The phone rep offered to cancel the res for me but said if it's an AP rate, I'd be charged VAT. This is a Hilton system shortcoming that contradicts AR government policy. Basically Hilton is illegally charging me VAT. Is there any recourse to this? Dispute with my CC with documentation?
savekenny is offline  
Old Dec 8, 2017, 12:19 am
  #2  
 
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Before getting too worked up, is this really a system issue or the interpretation of the benefit?
Here, https://turismo.buenosaires.gob.ar/e...-accommodation it states

The new VAT rule covers hotel stays and other forms of accommodations, and includes VAT imposed on breakfast services if they are part of the cost of lodging. Other hotel services are excluded and must be billed separately.

The rebate system is available to visitors who can prove with a valid passport or identification card that they live abroad, and who pay for their accommodation with a non-Argentine credit card or via bank transfer from another country. The process is completed at the time of billing, with no need for any extra paperwork.
While it states at the time of billing the Tax is removed, it similarly states guests must prove foreign citizenship and pay using a foreign credit card. You can certainly do the latter but not the former. You booking as a foreigner does not mean you will be staying and I guess the exemption requires a physical check during the stay. I am not sure if the tax can be refunded after showing up and proving your foreign nationality but I also understand why it's not waived upfront for prepaid stays.
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Old Dec 8, 2017, 8:26 am
  #3  
 
Join Date: Apr 2016
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I booked a AP rate and then made a BRG claim. They said they can't refund me now, but the hotel will refund me at the time of checkout to my credit card. I'm wondering if this would be a possible option for you, since PayItForward says you'll need to physically prove that you're staying at the hotel.
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Old Dec 11, 2017, 3:42 am
  #4  
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Originally Posted by zappy312
I booked a AP rate and then made a BRG claim. They said they can't refund me now, but the hotel will refund me at the time of checkout to my credit card. I'm wondering if this would be a possible option for you, since PayItForward says you'll need to physically prove that you're staying at the hotel.
I'm afraid the hotel will tell me the payment transaction is between me and Hilton AP, and they only get reimbursed by Hilton AP, so would not be able to refund me anything...
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Old Dec 12, 2017, 12:48 am
  #5  
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Originally Posted by savekenny
I'm afraid the hotel will tell me the payment transaction is between me and Hilton AP, and they only get reimbursed by Hilton AP, so would not be able to refund me anything...
I thought it was only US Hiltons which charge advance purchase rates centrally
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Old Dec 12, 2017, 7:55 pm
  #6  
 
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Originally Posted by savekenny
I'm afraid the hotel will tell me the payment transaction is between me and Hilton AP, and they only get reimbursed by Hilton AP, so would not be able to refund me anything...
I don't really think you will have a problem..two recent examples..we prepaid for a hotel in Israel where Vat was required until documentation at check-in proved we were foreigners. The prepay rate was no t actually charged until we got to the hotel and tax was removed with no issue. Reservation had been made 3 months before. So check you card to see whether you have actually been charged. Even though its prepaid, ive found its not charged until checkbin. Second example...just stayed in BA last month ..not on prepaid, but no issues with vat excluded...also the vat exemption on goods is also in force and for pretty low amounts..the stores provide the receipts and easy to get back at the airport. Be sure to have your passport number with you..you don't need the passport but the merchant needs the number to provide the tax receipt..
worldiswide is offline  
Old Dec 13, 2017, 3:41 am
  #7  
 
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Originally Posted by worldiswide
I don't really think you will have a problem..two recent examples..we prepaid for a hotel in Israel where Vat was required until documentation at check-in proved we were foreigners. The prepay rate was no t actually charged until we got to the hotel and tax was removed with no issue. Reservation had been made 3 months before. So check you card to see whether you have actually been charged. Even though its prepaid, ive found its not charged until checkbin. Second example...just stayed in BA last month ..not on prepaid, but no issues with vat excluded...also the vat exemption on goods is also in force and for pretty low amounts..the stores provide the receipts and easy to get back at the airport. Be sure to have your passport number with you..you don't need the passport but the merchant needs the number to provide the tax receipt..
Same experience in Santiago, Chile. Prepaid, not charged, adjusted at check-in.
tkelvin69 is offline  


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