Sales Tax, VAT

Sales tax, or VAT (Value Added Tax), is 7% on all purchases. (It was briefly raised to 10% after the 1997 crash but was lowered back to 7% after a few months.) VAT is supposed to be charged for both goods and services, though in practice this varies.

On many purchases, you will find that they don't add VAT. It's either included in the price or else they aren't paying their taxes.

Many hotels and restaurants, especially those which cater to foreigners, will add both VAT and a service charge. Look at the fine print at the bottom of the menu or price sheet. Other "taxes" such as "hotel tax" are just service charges by a different name.

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