In order to plan a budget for an Italy trip, I need to know if the VAT tax is generally included in the price or if it is added to the purchase price, especially hotels, etc. Also are there any fees or other taxes added to hotel bills? As this will be my first solo trip, I'm hoping to eliminate as many unpleasant surprises as possible. I will appreciate help from more experienced travelers. Thanks for reading this question.
Unlike the US, all taxes are buried or included in the quoted price whether it is a hotel, restaurant, etc. The small exception is that a tourist tax of 1 or 2E. per night, is being added to hotel bills in some areas. This is a recent change and is not wide spread at the moment.
Many American hotels, like Hilton, the Holiday Inn range, DoubleTree, InterContinental, Hyatt, etc., have to be watched carefully. I have found that while they will quote with the taxes included (and usually breakfast not included) in most European locations, when it is a tourist area like London,Paris, etc., they quote "plus taxes". Sometimes different hotels in the same chain in the same city will do it differently. Also, with the same ones, watch out for a room for two quoted as a particular price plus so much more for "each additional adult, starting with the second adult". That means take the price quoted, add another $$ for the second person you thought was already in the quote; then you may have the VAT on top at some.
All I can really offer is to read very carefully. The Inter-Web is a wonderful thing.