HELP ! 10% VAT for hotels in Italy ?
 

What is "VALUE ADDED TAX" called in Italy? I'm trying to figure out whether a 20% discount for paying cash is a deal to be considered. Is it true that the VAT is only 10 percent for hotels in Italy? Anyone still has an Italian hotel bill to help me figure it out?

Hi! I work at a hotel reservations center, so I checked out Italy property. The VAT is only 10%.

Hi todor,

>I'm trying to figure out whether a 20% discount for paying cash is a deal to be considered.<

Of course it is, irrespective of the VAT.

A 20% discount!! Geez, what's there to think about??

I'd say there is quite a LOT to "think about" in terms of the hotel's location, amenities, etc. Of course, saving 20% on a rathole can soften the pain a bit.

You might be better off asking about the hotel itself by name.

What I meant was if todor has already chosen a particular hotel becuase it meets his/her needs, and a 20% discount is being offered for paying cash, then why not take it?

I wouldn't pay in advance though.

Thank you all for your responses. I'm hesitating because I feel that skipping VAT is supporting a crime that the hotel owner is commiting. Yes, 20 % off the euros certainly helps, but I want to know whether I'm only skipping VAT or any other tax. I'm still curious if VAT is still called VAT in Italy or is it written on a hotel bill as something else?

Thanks for that update, I can understand you position now. If you think the owner is doing shady things, I see why you are concerned.

Upon a recent check-out from a family run hotel in Sorrento, I was offered a substantial discount for a cash payment rather than using my credit card.

Yes----I gladly gave her the cash. At that point, her bookkeeping was not my concern.

Yes---I would surmise that she was not going to report the room income--but, that was her decision to make.

I was given a receipt for my room payment, so I had no reason for concern that I was doing anything inappropriate.

We also recently booked a farmhouse stay north of Florence, and no credit cards are accepted. As long as we get a receipt for the monies paid for the lodging, it is the proprietor's responsibility to handle the appropriate Italian tax documents.

Just because you are paying a discounted rate on a hotel does NOT mean you are "skipping VAT." Why? because the VAT will be charged on whatever final rate you pay and the hotel will be expected to pay that VAT charge to the government and believe me, they aren't going to allow you NOT to pay it to them, discounted room rate or not.

VAT is called IVA in Italy.

If you pay by credit card, the hotel has to pay a commission to the credit card company, and will not receive payment for several weeks. If you pay cash over the counter, they should be able to offer you a discount. A 20% discount seems a very good deal and suggests their full price is excessive.

Isn't there still an imposto di soggiorno imposed by many municipalities, in addition to IVA?

Are you sure the offered discount for cash is 20% and not 2%? We have often been given a 2% discount for cash payment, which is the equivalent of their fee to the credit card company/ies. The only time we've been offered a larger discount is on long-term stays of two weeks or more, with cash paid on arrival and on one occasion (a few years ago) in U.S. dollars.

Twenty percent seems high to me but I discovered that had we booked our Rome hotel directly rather than through venere.com they would offer a 10% discount for cash. It seems to me that there are two things going on here. One is that the credit card companies take a cut of a few percent. The other is that cash offers the opportunity of tax reduction (i.e. evasion) for the hotelier. My guess (and that's all it is) is that when the discount gets above 5% there must be a tax fiddle involved.

>... had we booked our Rome hotel directly rather than through venere.com they would offer a 10% discount for cash.<

They save the commission to venere and they save the commission to the CC company. Sounds perfectly legal.

You will also find small hotels offering a discount if you stay a full week.

((I))

Thanks everybody!
I feel more prepared to take the 20% cash discount now. In general it's better for me to take the high road when dealing with a crafty individual as he seems to be, unless I'm well prepared for other tricks he may have. It'll be awkward to climb my way up once I've stooped down to his level especially if I'm staying in his hotel. You've all given me enough info, just in case the owner tries to add VAT or "other" surcharge tax after the 20% discount. It's Italy and it'll be our first hotel when we arrive.