Objective: Currently, there are some 95,000 people in Europe suffering from upper-limb impairment. Rehabilitation should be undertaken right after the impairment occurs and should be regularly performed thereafter. Moreover, the rehabilitation process should be tailored specifically to both patient and impairment. Approach: To address this, we have developed a low-cost solution that integrates an off-the-shelf Virtual Reality (VR) setup with our in-house developed arm/hand intent detection system. The resulting system, called VITA, enables an upper-limb disabled person to interact in a virtual world as if her impaired limb were still functional. VITA provides two specific features that we deem essential: proportionality of force control and interactivity between the user and the intent detection core. The usage of relatively cheap commercial components enable VITA to be used in rehabilitation centers, hospitals, or even at home. The applications of VITA range from rehabilitation of patients with musculodegenerative conditions (e.g. ALS), to treating phantom-limb pain of people with limb-loss and prosthetic training. Main Results: We present a multifunctional system for upper-limb rehabilitation in VR. We tested the system using a VR implementation of a standard hand assessment tool, the Box and Block test and performed a user study on this standard test with both intact subjects and a prosthetic user. Furthermore, we present additional applications, showing the versatility of the system. Significance: The VITA system shows the applicability of a combination of our experience in intent detection with state-of-the art VR system for rehabilitation purposes. With VITA, we have an all-purpose experimental tool available, which allows us to quickly and realistically simulate all kind of real-world problems and rehabilitation exercises for upper-limb impaired patients. Additionally, other scenarios such as prostheses simulations and control modes can be quickly implemented and tested.