On Sunday the yet still controversial tourist tax will be four months old and hoteliers will have to start submitting their first tax audits next week to the Balearic tax department. There has been much confusion over the past few months with hoteliers adopting a variety of ways in which to collect the tax, some charging while others such as the Sol Melia hotel chain, deciding not to pass the cost on to its clients and paying the tax itself. Others are giving guests vouchers to spend in the hotel, but all have asked clients to sign over power of attorney to the hotel chain should the tax be over ruled in the Madrid courts and the hotels then liable to apply for a refund. In the meantime however, hotels, apartments and villa should have decided which of the two tax payment models they wish to use with the first declarations due next week.

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