Italy VAT on online house sharing services

Thu 29th Sep 2016

The Italian government has confirmed that online markets for short-term house rentals are liable to charge VAT on their booking and brokering services.

The VAT liability covers non-resident intermediaries operating in Italy, and now obliges them to Italian VAT register and make monthly payments of VAT collected on B2C transactions. B2B transactions may be simplified under the reverse charge mechanism – meaning no VAT being charged by the non-resident service supplier.