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US VAT: In the US there is no federal sales tax. US sales tax is instead set by state and local authorities, and most charge both a sales tax (2.9%7.25%) and some form of bed tax, occupancy tax, lodging tax or hotel sales tax (0%20%).
Lodging taxes are levied by your state or local government and can go by different names, including sales tax, transient tax, hotel tax, room tax, occupation tax, and many more. Guests are required to pay these taxes on top of the cost of their accommodations.
File a signed copy of your tax return (with all attachments, forms, and schedules, including Form 8689) with the Islands Bureau of Internal Revenue, 6115 Estate Smith Bay, Suite 225, St. Thomas, VI 00802.
Although the name transient occupancy tax is specific to California, similar lodging taxes are in effect across the United States. You pay these taxes when you rent a room, bed or other space. Its the lodging operators job to collect the tax and pay it to the government.
Two statesAlaska and Californiahave no statewide taxes that apply to accommodations. These rules only apply to statewide taxes. Individual municipalities in any of these states may also levy taxes on accommodations, and their rules for federal employee exemptions may be different than the states.
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(1) Every guest of a hotel as defined above shall pay to the Government of the United States Islands a tax to be collected and remitted to the Government by the hotelkeeper or innkeeper at the rate of 12.5 percent of the gross room rate or rental.
INDIVIDUAL INCOME TAX Individuals who are bona fide residents of the Islands file Form 1040 with the Islands and pay tax on their worldwide income to the Islands.
Tourist tax has long been the norm in several countries in Europe, and in the US. But its not imposed in every country. Below, we explore some of our most popular destinations, and their associated tourist taxes.

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