Originally Posted by
IAN-UK
Yes. But in some jurisdictions the tax is not applicable to non-revenue stays. Some hotels may not be aware of this, or wilfully ignore it.
In Lisbon none of the IHG hotels I've stayed has applied the city tax on reward stays: and it's quite clear they should not.
In KL a Hilton charged me, the IC did not. The Malaysian legislation is not crystal clear, saying in one part only revenue stays attract the tax but suggesting in another section that reward stays are liable. I guess Hilton is playing it safe; maybe the IC was willing to absorb the cost if the taxman comes calling.
I guess there's an argument that reward stays generate revenue, even though it's not received from the customer.
I've always thought the idea is that sales tax, etc. are paid by IHG for reward stays. Only city tax, etc. that are explicitly stated to be paid by the guest are charged for reward stays.