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Italy City Taxes for Hotel rooms

Greetngs all!
We are headed to Italy on a RS tour in April, and have been planning some extra day stays in Rome/Florence - All the Hotels
advise us a of a cash only tax for the rooms. I understand this is a new city tax, but was wondering if anyone knew why it is only collected in Cash by the Hotel, and can't be added to your Hotel Bill?

Thanks
Nate

Posted by
1059 posts

This tax was introduced in 2011. When I stayed in Rome a couple of years ago before a RS tour it was added to my bill. How much it was depends on if it is on the "starage" of the hotel: its usually 2-3 Euro per night for a maximum of 10 days. If they insist on cash payment, get a receipt and make sure your hotel bill doesn't include the tax.

Posted by
16583 posts

There is actually a reason why hotels charge for that tax separately and they want cash for it. This was (and still is) object of debate in Italian newspapers.

The legislator introduced this tax to finance costs associated with tourism (mainly art restoration and tourism facilities), however the law was not clear and hotel operators have interpreted this way to avoid problems with it.

First let's analyze why hotels bill separately for it. Basically, as the law is written, if included in your hotel invoice (which is a form a copy of which goes to the Italian tax authorities) it would subject the hotel to the payment of VAT (a sort of sales tax) on that amount. So if for example the hotel collects 5 euro for that tax from you, (if included in the bill) the hotel would need to pay the government another 1 euro in VAT (21%), since the entire amount in the bill is subject to the VAT. The tax in our example would then become 5 euro tourist tax for you+ 1 euro VAT for the hotel=6 euro. But that was not the intention since the tourism tax should not be subject to VAT.

Second let's analyze why hotels want cash (not credit card for it). The reason in this case is because if they let you pay the 5 euro tourist tax with a credit card, the hotel would need to pay a 4% commission to the credit card company for an amount that is not hotel revenue, but rather a tax that the hotel will need to fully give back to the government. Of course 4% of 5 euro is not much but if you multiply times many days for each hotel room it would be quite a commission fee for the hotel to pay for an amount that does not represent a revenue or income to the hotel.

So lacking better instructions in the law, hotels charge separately in cash to avoid paying VAT and/or credit card commission fees on that tourism tax.

Posted by
23785 posts

I am sorry I missed it. Was the rant aimed at the US govt or the Italian govt? Isn't it a bit arrogant on your part to think that all Italians should be bilingual in English for your convenience? How is your Italian?

Posted by
11613 posts

Spend the tourist tax on bilingual info signs/branding rather than art/architecture? Who goes to Italy to see the Info sign/brand?

Posted by
7737 posts

How odd to revive a six-month old thread this way, and with your very first post.

Posted by
163 posts

Excuse me..but it is thier country and thier tax laws.. i think if yu go you pay what they ask.. plenty of ppl in Italy spoke English and other languages.. it is we Americans that are stupid.. never go to another persons home and tell them how to do things

Posted by
4535 posts

Maybe the info signs could be in perfect English and with great photos of the sites so I can then skip seeing the sites, avoid the pickpockets and catch the next train out of Italy so I don't have to pay the outrageous tourist tax...

Posted by
23785 posts

The posting is very odd. Besides being a first posting and attached to a six month old posting, the web site, no-tax.it, is not a valid. Obviously the poster hasn't been back so am not sure the purpose of the posting other than to do a little venting.