Auto Rental News
MenuMENU
SearchSEARCH

Hefty VAT for Car Rentals in Europe

Customer charged 22 percent value added tax in Croatia.

by Staff
February 20, 2008
2 min to read


A customer who contracted with CarRentals.com for an auto rental in Croatia was charged more than $170 in additional fees, including a 22 percent value-added-tax (VAT), an airport location fee and an extra rental day, according to Linda Burbank’s travel column in USA Today.

The CarRentals.com Web site clearly states that its prices include "all known rates, taxes, fees, surcharges and applicable drop off charges that you must pay." Its rental quotes list daily rates and estimated taxes and fees separately, with a detailed breakdown of the latter. If you book a car on CarRentals.com, the actual rental-car company will charge you directly.

Ad Loading...

When Kenneth F. Oehrle booked the reservation with Sixt in Croatia through CarRentals.com, the booking confirmation stated the estimated taxes and fees were zero, but the total charge to his credit card was $171 beyond the original agreement. This should have been a red flag, Burbank says, since VAT is added onto car rentals in most of Europe. It can raise estimated rental costs significantly: Croatia's VAT rate is 22 percent. VAT charged on services such as rental cars or hotel stays isn't refundable, and it's unavoidable.

Sixt had just started working with CarRentals.com. Oehrle’s estimated fees came up empty because Sixt's full fee details had not yet been loaded into CarRentals.com's system, according to site founder and chief technology officer David Morton. Therefore, Sixt cars in Croatia should not have been bookable at that time.

Burbank says Oehrle's credit card company bowed out of the dispute, since his bill was correct even though it went against CarRental.com's full-disclosure policy. CarRentals.com investigated Oehrle's claim and apologized for the glitch, then sent Oehrle a check to cover the undisclosed extra fees.


More Rental Operations

plane, palm trees, car rental sign
Rental Operationsby Chris BrownSeptember 15, 2026

Palm Beach Airport Code Change Creates Car Rental Distribution Gap

A test of rental searches under the old PBI and new DJT airport codes returned largely different sets of brands and vehicles, highlighting a potential distribution problem for rental operators.

Read More →
Team members of U-Save's new franchise
Rental Operationsby StaffSeptember 15, 2026

U-Save Continues Dominican Republic Expansion with Launch in Punta Cana

The new franchise location builds on U-Save’s existing Santo Domingo operation and will begin taking reservations for October 2026.

Read More →
A traveler searches for rental cars with an AI bot
Rental OperationsSeptember 14, 2026

When AI Books the Rental Car, Who Controls the Sale?

As AI moves from comparing rental rates to completing transactions, operators need to understand how travelers find, interpret, rank, and ultimately see their offers. (Part 2 of 2.)

Read More →
Ad Loading...
map of europe and summer car rental rates
Rental OperationsSeptember 11, 2026

European Booked Car Rental Rates Fell 5%, Results Varied by Country

Ireland, Cyprus, and the United Kingdom saw steep declines, while booked rates rose in Poland and Hungary.

Read More →
thumbnail of Chris Brown and Mike DeLorenzo with title Time to Rethink Rental Categories?
Rental Operationsby Chris BrownSeptember 8, 2026

Is It Time to Rethink Rental Categories?

As traditional economy and compact cars disappear from the market, longtime rental operator Mike DeLorenzo asks whether the industry’s familiar vehicle categories still make sense — and what operators need to rethink along with them.

Read More →
Woman receiving car rental rates on computer from AI agent
Rental OperationsSeptember 1, 2026

Who Owns the Rate? AI Is Creating a New Distribution Problem for Car Rental

Generative Engine Optimization asks whether AI can find a rental company, but operators also need to know whether the agent inspected enough of the market, compared equivalent offers, and presented a rate the traveler can actually book. (Part 1 of 2)

Read More →
Ad Loading...
map of globe with regional corporate car rental rates
Rental Operationsby StaffAugust 25, 2026

U.S. Business Travel Car Rental Rates Forecast to Rise Up to 2%

Improved fleet supply should limit pricing gains in 2026-27, while insurance, repair costs, and softer residual values continue to pressure rental operations, according to Amex GBT.

Read More →
Sixt H1 financial results
Rental Operationsby StaffAugust 14, 2026

Sixt Revenue Tops $2.4 Billion in First Half of 2026

Sixt’s first-half revenue surpassed $2.4 billion for the first time as demand outpaced fleet growth, lifting utilization and earnings despite weaker consumer sentiment in North America.

Read More →
Bobby Klyce in memoriam image
Rental Operationsby Chris BrownAugust 13, 2026

In Memoriam: Bobby Klyce, Avis Licensee Legend

The longtime Birmingham Avis operator and 2018 Auto Rental News Impact Award recipient was remembered as an advocate for independent licensees and the broader car rental industry.

Read More →
Ad Loading...
Vibe coding webinar promo image
Rental Operationsby StaffAugust 12, 2026

How to Build Custom Fleet Tools With AI and Vibe Coding [Webinar]

A new Automotive Fleet webinar explores how fleet managers are using AI and vibe coding to automate routine work and create simple operational tools without traditional programming skills.

Read More →
Ad Loading...