Originally Posted by
Gaucho100K
If you are being billed for your stay (ie. not paying with points), then VAT is always payable. Even if the hotel chooses to give you a discount thats equivalent to the VAT surcharge, you will be billed and will pay VAT (unless the hotel takes cash and does not issue a valid tax invoice, but thats another story).
Yes, what you say is definitely the case.
Cornroaster, however, did ask about "VAT based on the rack room rate", and VAT based on the rack room rate in Buenos Aires is unusual because it's not usually VAT based on the
rack rate for it's always VAT based on the
actual room rate being paid for by the guest. There can be and usually is a big difference between paying 21% on
rack rate and 21% on the
actual rate paid for by the guest. For paid stays, fortunately it's 21% of the actual rate paid for by the guest rather than 21% of the rack room rate which may well be much more expensive than 21% of the actual room rate; and fortunately no VAT payments on award stays are due from guests staying at the mentioned hotels in Buenos Aires.