IVA (VAT) is European value added tax. The rate in Spain is 21% and this figure is included in the deposit of the charter and the final balance. This applies to the charter fee and fuel. Attempting to avoid IVA carries heavy penalties and may affect insurance cover, so it is always best to pay the correct IVA. Certain items such as basic food and drinks are 10% rated and there is also a 4% rate for basic foodstuffs.