For those unaware and yet to visit Verona, there is a nightly tourist tax when staying in local accommodations. Its a small charge, ranging from a euro to a few euros a night, and is supposed to be paid directly to the city by the innkeeper. This is very common in all of Italy, and what’s also very common is for the innkeepers to not report stays, and instead pocket this tax themselves. However, Verona is now cracking down on this, and with pretty great success.
As reported on Friday, April 5th, significant progress has been made in the collaborative project eight months ago between the Municipality of Verona, involving the Tax Office, financial police, and local police, to combat tourist tax evasion.
Through meticulous data extraction, comparison, and anomaly identification, 29 accommodation facilities came under scrutiny, the project has already achieved significant milestones:
- €100,000 in Unpaid Tax Recovered: Authorities identified 29 accommodation facilities evading taxes and recovered nearly €100,000 in owed tourist tax.
- Uncovered Revenue and VAT: Investigations revealed over €500,000 in undeclared income and €70,000 in unpaid VAT.
- Illegal Workers Identified: Eight individuals were found to be employed illegally.
These achievements were presented by councilors Stefania Zivelonghi (security), Luisa Ceni (taxation), and Marta Ugolini (tourism), along with representatives from the financial police, local police, and the Municipality of Verona. Andrea Elifani from the Municipality highlighted the significant increase in tourist tax collection from €5.5 million in 2019 to €6,185,147 in 2023, crediting collaborative efforts with the local police and municipal departments.
“The first objective, is to protect and enhance those who work in this sector, which is crucial for the Veronese economy”
-councilor Stefania Zivelonghi
The projects reach goes beyond just tax collection as well. It also uncovered:
- Building Code Violations: Non-compliance with building regulations in several facilities led to reports being filed with the judicial authorities.
- Possible False Residency: A suspected case of fictitious residency in a tourist location was identified and reported to the relevant authorities.
Regarding municipal taxes, Palazzo Barbieri clarified that the Tax Office ensured the regularity of tourist tax payments by accommodation providers, issuing executive assessment notices to recover unpaid taxes and imposing legal sanctions. Additionally, comparisons and checks were conducted to verify the accuracy of quarterly tourist tax declarations submitted by managers, enabling the recovery of evaded taxes through assessment notices and legal penalties.
So basically, innkeepers and AirBnB owners in Verona are on notice! And while nobody enjoys paying more taxes, keep in mind that these were taxes being collected by hosts under the guide of it going to the city, but just keeping it for themselves instead. Tourism is a major part of the Veronese economy, and councilor Zivelonghi is right, the first priority needs to be protecting the economy for those doing the right thing.
