The taxes and fees are based on a few factors, examples include but are not limited to local tourism and bed taxes, value-added tax, sales tax based on the full rack rate of the accommodations, maid service fees, zone surcharges, travel agency fees, federal, state, local, or municipal taxes, etc. most average only about $20 US per night.
Your cost to redeem this incentive and book the reservation is just the recovery fees for the local government taxes and tourism fees which vary by destination. The RedeemVacations Companies do not collect taxes for remittance to applicable taxing authorities. The tax recovery charges on prepaid hotel transactions are a recovery of the estimated taxes (e.g. sales and use, occupancy, room tax, excise tax, value-added tax, etc.) that the RedeemVacations Companies pay to the hotel supplier for taxes due on the hotel’s rental rate for the room. The hotel suppliers invoice the RedeemVacations Companies for certain charges, including tax amounts.
The hotel suppliers are responsible for remitting applicable taxes to the applicable taxing jurisdictions. None of the RedeemVacations Companies act as co-vendors with the supplier with whom we book or reserve our customer’s travel arrangements. Taxability and the appropriate tax rate vary greatly by location. The actual tax amounts paid by the RedeemVacations Companies to the hotel suppliers may vary from the tax recovery charge amounts, depending upon the rates, taxability, etc. in effect at the time of the actual use of the hotel by our customers.
