Upvote:2
Don't pay this. The split billing is normal where a VAT registered entity is involved. The insurers pay the repairers the cost of repair. The repairers bill the owners for the VAT portion of the bill. The VAT registered owners then reclaim the VAT as part of their normal VAT accounting process.
If Sixt get paid by you they can still reclaim the VAT elsewhere and thus get paid twice.
Note: This is the way it works in the UK. I couldn't find a specific reference to this scenario, but this page covers VAT reclaim under Additional Costs. It is possible that the system is different in Italy, but VAT regulations don't differ much, and if it is different then the insurers should deal with it.
Upvote:5
Do I have to pay this?
Yes you do, a VAT-able service was provided.
Being a U.S. citizen, can I get reimbursed for this VAT?
No, only goods presentable at the point of exit of the EU can have VAT refunded - you cannot claim a VAT refund on a service provided during or after your stay.