Planning to do some shopping in Italy? Be sure to learn how to get your Italy VAT Refund to save some money.
If you’re heading to Italy and planning to spend any money (haha), then you’ll be paying sales tax in Italy. You may want to learn how to get some of that money back! If you’re not an EU citizen, you’re eligible to get an Italy tax refund on many of your purchases.
Many visitors will make use of this for buying higher-priced items like designer bags or shoes, and most higher-end stores will provide the form for you, but be sure to ask. Read on to learn more about how to do this.
What is the Italy VAT Tax?
When visiting Italy, you might encounter sales tax, known as “VAT” (Value Added Tax). The VAT in Italy also referred to as “IVA” (Imposta sul Valore Aggiunto), is a consumption tax applicable to most goods and services. As of my last update in July 2023, the standard VAT rate in Italy was 22%, with reduced rates for specific items like food and non-alcoholic drinks, and hotel accommodations.
If you are a non-EU resident, you could be eligible for a VAT refund on eligible purchases made during your stay. Look for stores displaying “Tax-Free Shopping” or “Global Blue” signs to claim the VAT refunds. These stores participate in the VAT refund scheme, and you can request a VAT refund at the time of purchase.
How to get the Italy VAT Tax Refund
To initiate the VAT refund process, request a Tax-Free Form (VAT refund form) from the salesperson and fill it out with your details. Be sure the information provided is accurate. To be eligible for the VAT refund, a minimum purchase amount is usually required in a single transaction from the same store, so check the specific requirements.
When claiming the VAT refund, you will need the following documents:
- Original, fully completed Tax-Free Form.
- Receipt/invoice for the purchased items.
- Passport to prove your non-EU residency status.
Before departing Italy, you must get the Tax-Free Form validated by Customs. Locate the Customs office at the international airport or border crossing and present your purchases, the Tax-Free Form, and your passport to the Customs officer for validation. Remember that each Tax-Free Form is specific to a single purchase and store, and Customs validation is required for each form.
After Customs validation, you have a couple of options for the VAT refund:
- Instant Refund: Some airports and shopping centers offer VAT refund desks where you can receive an immediate refund in cash or through a credit card. Please note that this option may involve deducting a handling fee.
- Mail Refund: If you don’t choose the instant refund option, you can mail the validated Tax-Free Form to the VAT refund company using the provided envelope. The VAT refund will be processed via credit card or bank transfer after deducting any applicable handling fees.
Italy VAT Refund Calculator
To help you figure out your VAT refund amount, I recommend using a VAT Refund Calculator. This is the one I like to use to calculate my refunds.
For more information about the Italian tax free refund process, please visit the official websites of the tax authorities or VAT refund companies. Remember that tax regulations and procedures may change, so it’s always best to stay updated with the latest information when planning your visit to Italy.
To Recap:
- Understand the VAT: VAT, known as “IVA” (Imposta sul Valore Aggiunto) in Italy, is a consumption tax applied to most goods and services. The standard VAT rate in Italy is 22%. As a non-EU resident, you may be eligible for a VAT refund on eligible purchases made during your stay.
- Eligibility: To be eligible for a VAT refund, you must be from a non EU country and meet certain spending criteria. Generally, there is a minimum purchase amount that you need to reach in a single transaction on eligible goods from the same store. The minimum purchase amount can vary, so check with your store.
- Tax-Free Shopping: Look for stores displaying “Tax-Free Shopping” or “Global Blue” signs. These stores participate in the VAT refund scheme. When making a purchase, inform the salesperson that you want to claim a VAT refund.
- Get a Tax-Free Form: The salesperson will provide you with a Tax-Free Form (also known as a VAT refund form). Fill out the form with your personal details, and make sure the information is accurate.
- Document Requirements: In general, you will need the following documents to claim a VAT refund:
- Original, fully completed Tax-Free Form approved
- Receipt/invoice for the purchased items
- Passport (to prove you are a non-EU resident)
- Validation at Customs: Before leaving Italy, you need to get your Tax-Free Form validated by Customs. Look for the Customs office at the international airport or border crossing. Present your purchases, the Tax-Free Form, and your passport to the Customs officer for validation. They may ask to see the items, so keep them easily accessible.
- VAT Refund Options: After Customs validation, you have a couple of options to get the VAT refund:
- Instant Refund: Some airports and shopping centers have VAT refund desks where you can get an immediate refund in cash or through a credit card. This option might deduct a handling fee.
- Mail Refund: If you don’t choose the instant refund option, you can mail the validated Tax-Free Form to the VAT tax refund company using the provided envelope. The refund will be sent to you via credit card or bank transfer after processing, minus any applicable handling fees.
I hope this helps you figure out your VAT rates, understand the exact amounts of your refunds, and smoothly receive your Italy refund tax.
Looking for more help planning your trip to Italy? Be sure to check out our Italy Travel Planner.
