VAT with Points

[Planit123]

Can someone tell me if I should have to pay VAT (as an Israeli citizen) at a hotel when I book the stay with credit card points? I stayed recently at the Kings and they charged me VAT, that was the first time that's happened to me. Thanks

[davidd75]

thats strange as I would think vat tax on $0 is $0 unless the are deeming a cash value to the points booking?

[AMH]

Can someone tell me if I should have to pay VAT (as an Israeli citizen) at a hotel when I book the stay with credit card points? I stayed recently at the Kings and they charged me VAT, that was the first time that's happened to me. Thanks

Its like when you book through booking.com the hotel will charge you TAX credit card points are the same they are like an agent so if you didnt book directly with hotel points they can charge you Tax

[Shaya E]

 I'm assuming you used a bank travel portal. As far as the hotel is concerned it is a cash booking. It's the bank that's paying cash and letting you use their points to reimburse them.

If you are referring to hotel points for award nights, that is indeed strange.

[davidd75]

Can someone tell me if I should have to pay VAT (as an Israeli citizen) at a hotel when I book the stay with credit card points? I stayed recently at the Kings and they charged me VAT, that was the first time that's happened to me. Thanks

how exactly did you book the hotel?

[gross5g]

When you use hotel points or free night certificate (Hilton Marriott etc) then those points make the room charges $0 so vat on 0 is 0 .
When use a cc points chase amex etc then the credit card is basically using the points to pay for the room for you but the room charge is still there so you'd have to pay the vat.

[Planit123]

Thanks everyone
I booked this using Chase credit card points through the Chase portal, so I guess it does make sense that they charged me the VAT.
In the past, I booked at the Plaza the same way and they did not charge me the VAT. I suppose that was just an oversight?

[tavster]

Thanks everyone
I booked this using Chase credit card points through the Chase portal, so I guess it does make sense that they charged me the VAT.
In the past, I booked at the Plaza the same way and they did not charge me the VAT. I suppose that was just an oversight?

Yes - when you use the chase portal the hotel treats it as cash booking
When you use hotel points, like HH at the Waldorf they treat it as award do no tax

[Planit123]

Is there any way to convert Chase points into hotel points?

[Aviw]

https://www.dansdeals.com/points-travel/ultimate-guide-bank-points-transfer-airline-hotel-partners-plus-breakdown-long-transfers-take/

[Shaya E]

Is there any way to convert Chase points into hotel points?

Yes. Hyatt, Marriott and IHG. Hyatt is practically always a great choice and the two others are typically terrible options (unless there is a major transfer bonus going on and/or for a niche redemption).