Do rates for hotels include taxes already?

I have never had to pay more than the stated price for goods and services in Italy. I've never looked into it but perhaps, because VAT is an EU wide tax, it's like the UK where it is the law that prices have to be inclusive of any taxes? Maybe if you book through a US site they split out the tax element?

Generally when you make the reservation, hotels will quote you the total price including VAT. Most hotels seem to show price including VAT in their posted rates.

There are certain websites and hotel chains that will show rates exclusive of VAT when they initially quote the price; however, it usually clear if they are not including VAT in quote. For example, if you look at the Holiday Inn or the Millenium hotels website for a hotel in London, the rates indicate that they are exclusive of VAT; I have no idea why they do this. However, before you confirm, they show you the total with VAT.

Pay attention to Uncle Ed, Linda.

It's called the sucker trick. Lots of american sights do it with car rentals as well. Low price in big letters at so much per day, then when you get right down to it, the total price for a week is a lot more than the first price times seven. It's the ameerican way.