claim VAT back on hotels in Italy

Hotel accommodation falls under the refund scheme

VAT on a hotel stay in Italy is one of the cost categories eligible for refund via the Tax and Customs Administration portal. Lodging is on the list of ten EU cost categories for which a Dutch entrepreneur staying in Italy for business purposes can claim back the VAT paid there, together with, for example, fuel, tolls and trade fair participation. This applies to stays that are demonstrably business-related, with an invoice that meets the requirements of the refund country.

Whether a hotel invoice qualifies in full or in part for refund is determined by Italy itself. Some EU countries exclude certain cost categories or restrict them, and these rules differ per country and can change year on year. For lodging in Italy, the invoice must be in the name of the business and contain the usual details — the supplier's VAT number, date, amount and VAT amount shown separately. Without a correct invoice, a claim cannot be substantiated, even if the stay was clearly business-related.

Basis: Directive 2008/9 and the Requirements list per country

The right to claim back foreign VAT on business expenses derives from Council Directive 2008/9/EC, which provides the framework for refunds to entrepreneurs not established in the refund country. Which cost categories Italy actually allows and under what conditions is set out in the Tax and Customs Administration's Requirements list per refund country and in the Taxes in Europe Database of the European Commission, which maintains the VAT rules of each Member State. These sources together determine whether a hotel invoice from Italy is suitable for a claim, and on which parts thereof.