Yes, diamonds on points still have to pay the VAT. I am here right now and it has been a miserable stay. The A/C is broken and it is extremely hot in my room and all over the hotel. They have no estimated time on when it will be fixed and they will not move us to another hotel. I cannot wait for my stay to be over which is a shame because we have been looking forward to this trip for a long time. No compensation has been offered either. They are basically saying that "stuff happens" sorry.