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VAT on hotel rooms ?

We're in the process of making reservations for next year's trip to Italy. One hotel is adding on a 10% VAT (Value Added Tax). I realize that we can request VAT refunds at the airport when leaving, but i don't recall seeing any other hotel on previous trips add a VAT - is this customary in Italy?

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In many hotels, VAT is buried in the hotel rate per night, so you probably paid it without noticing it.
Bad news, unless you are on business you can't be refunded the VAT tax for hotels as it is considered as being purchased and consumed onsite.