Tax Free and Refunds for Non-EU Residents

Official Tax Refund website: taxrefund.it

Italy imposes a value-added tax (VAT), known as IVA (Imposta sul Valore Aggiunta) in Italian, at a rate of max 22% on most goods and services. This tax is typically included in the listed price of products and services.

Non-European Union (EU) residents who make purchases of more than € 154.95 at a single shop can claim a tax refund upon leaving the EU. However, it is important to note that this refund only applies to purchases made from stores that display a “Tax Free” sign. To obtain a tax refund, visitors must follow specific procedures and provide the necessary documentation, such as a tax-free form, invoice, and passport in the store. By utilizing this service, travelers can receive a partial refund of the VAT they paid during their stay in Italy, which can be a considerable benefit, especially for those who are making significant purchases.

The maximum tax refund amount is as follows: maximum cash refund – 2,999.50 EUR per person, maximum credit card refund – 4,999.50 EUR per person. The tax refund rates (for the same tax refund form) are as follows: 12% for purchases up to 3,000 euros; 13% for purchases between 3,000 euros and 5,000 euros; 14% to 15% for purchases between 5,000 euros and 8,000 euros.

Request Forms at the Shop

There are three tax refund companies in Italy: Global Blue (www.globalblue.com) , Premier Tax Free(www.premiertaxfree.com), and Tax Refund For Tourists. The tax refund procedures for all three companies are basically the same.

As customer, you need to inform the cashier that you want to shop tax-free. Then, they will provide you with the necessary forms to fill out.

You will need to fill out a tax refund form with your personal information, including your name, address, and passport details. REMEMBER to bring your passport during your shopping. Make sure to provide accurate and complete information.

Claim Tax Refunds at the Airport

The tax refund is divided into two cases: shopping within Italy and shopping outside of Italy. For shopping within Italy, you can choose to receive a tax refund either in the city or at the airport. For items purchased outside of Italy, you can only receive a tax refund at the airport.

Before leaving Italy, you must get your tax refund form stamped at the customs office in the airport. Present your completed form, passport, and the goods for inspection.

You can fill the form before your trip to save time.

The tax refund process must be completed before checking in your luggage. Ensure you have the purchased items with you as they may need to be verified. The officer may or may not request to check the items.

Make sure to arrive at the airport early, as the tax refund queues can potentially be quite lengthy. Sometimes, it’s a matter of luck.

Refund Options and Processing Time

Depending on the store and the chosen refund service, you can receive your refund in various ways, such as credit card reimbursement or cash on the spot.

In certain instances, an immediate refund may be provided, with a service fee depending on the refunded amount. However, the challenge lies in the fact that, the refund is typically issued in the local currency. After you come back to your home country, the local bank will take another service fee for the currency exchange.

Certainly, you have the option to opt for a credit card reimbursement. However, it’s important to note that the usual waiting period for a VAT refund ranges from 4 to 8 months and, in some cases, may extend beyond a year. Thus, if you choose credit card reimbursement, don’t cancel your credit card after your travel.