IVA (VAT) is European value added tax. The rate in Spain is 21% and this figure is added to the deposit of the charter and the final balance. This applies to the charter fee and fuel. This is a tax that must be paid and there are big fines and penalties for those who try to avoid these payments. It can also affect your insurance cover should anything go wrong, so it is always best to pay the IVA. Certain items such as basic food and drinks are 10% rated and there is also a 4% rate for basic foodstuffs.