New Italian VAT rules on short term house rentals

The Italian government has confirmed that North American companies offering online services for short-term house rentals are liable to charge VAT on their booking services. The new VAT liability applies to all non-resident organizations operating in Italy, and now requires them to register for VAT in Italy, collect VAT from the private individual customers, and make monthly payments to the Italian tax authorities of VAT collected on the B2C transactions. No VAT generally needs to be charged to company customers since they will be simplified under the “reverse charge mechanism.” Please contact our VAT experts for further details.

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