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VAT tax on house rental through www.vrbo.com

We may rent a house (U.S. owners) in Umbria next year, owners have added 21% VAT tax to cost of rental...is this type of VAT tax refundable? Thanks.

Posted by
492 posts

No, it's not. I am surprised that the owners are separately stating VAT since prices in Italy are quoted inclusive of VAT not like here at home. Technically, the only time a portion of VAT is refundable is for purchases taken out of the country without being used, parallel to our laws here in California, out of state that is.

Posted by
931 posts

In Jan., VRBO (and its sister org Homeaway) sent us a notice letting us know that thieves have been grabbing VRBO Emails, and providing ficticious adresses and info for rental funds. The only way to combat this is to call the renter directly, and verify any Email info that you receive. Caveat Emptor. If this tax does not seem correct, how does the total price compare to other comparable rentals? Have you also searched for comparable rentals on Homeaway, and Homelidays? Do they add on VAT taxes? We rented a huge self contained apt in the owners farm house in Umbria and couple of years ago (Agritourisimo Frallarenza), and could not have been more happy. It was only $75 EU/nite, and they had a pool. They also had another apt that was much larger, with more bedrooms. It was easy to vett this agritourisimo because there were numerous reviews on sites like Trip Advisor.