I know I can probably find the answer in books, but I've looked for it here and haven't found it, so I'll ask here. I'm browsing hotel booking sites and they all seem to say the total cost includes some percentage of VAT. I know what that is. I'm just asking is there a way I can get that amount returned to me when I leave for the US to come home?
To get a refund you have to prove you are taking the goods out of the country--kind of difficult with a hotel room rental.
That's right...you're not eligible for VAT refunds on services, such as hotel. The beauty of building the tax right into the price of the room is that there aren't any surprises when you get the bill. If it's an 85€ room, that's what you'll see on the bill. Helps with budgeting. Here, a $100 room might end up costing you $130.
But always check closely, as there are some hotels, usually expensive, that do not include the tax in their listed prices. E.G, the Four Seasons Gresham Palace in Budapest, as noted in the Blue Book.
OK. Thx. So the VAT is a tax on THINGS. not on SERVICES. Got it.
No- the VAT is a Value Added Tax. It is on both goods and services. However, the only "refund" of the tax you can claim is on goods you are taking out of the country with you. You cannot claim the refund on your hotel room, nor the resturant bill, nor the barber's or any other service.