{"id":28550,"date":"2016-03-30T10:00:51","date_gmt":"2016-03-30T15:00:51","guid":{"rendered":"http:\/\/selectitaly.com\/blog\/?p=22550"},"modified":"2021-01-19T20:16:31","modified_gmt":"2021-01-19T20:16:31","slug":"vat-refund-how-to-claim-vat-refund","status":"publish","type":"post","link":"https:\/\/selectitaly.com\/blog\/tips-travelers\/vat-refund-how-to-claim-vat-refund\/","title":{"rendered":"VAT Refund 101: What is it and How to claim your VAT Refund \u00a0"},"content":{"rendered":"

<\/u>The Dollar to Euro exchange rate has been very favorable for visitors to Italy over the last couple of years so you get much more Amalfi Coast or Roman holiday for your money than you used to. But did you know you could be saving even more if you take advantage of the tax-free shopping, too? It could be as much as 20% off your bill. That\u2019s because Italy, just like its European neighbors, charges VAT (value added tax) on many of the things you\u2019ll spend money on while on vacation. And the good news is that if you\u2019re a non-European resident, you don\u2019t have to pay the tax. It\u2019s not quite as easy as just knocking off 20% at the checkout counter, but claiming your VAT refund<\/strong> should definitely be added to your holiday to-do list. Here\u2019s everything you\u2019ll need to know about\u00a0tax-free<\/strong> shopping in Italy<\/strong>.<\/p>\n

What is VAT?<\/h2>\n

Value added tax (VAT) is a state tax applied to food, accommodation and consumer goods. It\u2019s charged at varying levels across different European countries since each territory sets its own VAT. Italy\u2019s VAT or IVA (Imposta sul Valore Aggiunta)<\/em> rate is around 20% depending on what you\u2019re buying.<\/p>\n

But because the VAT or IVA is incorporated into the price tag of pretty much everything you buy, you could end up leaving quite a bit more money behind in Italy than you need to unless you request a VAT refund.<\/p>\n

Tax-Free Shopping for Tourists<\/h2>\n

So if you\u2019re planning a shopping trip to Milan<\/strong> for its world-renowned fashion, or fancy\u00a0a unique Murano glass sculpture<\/strong>\u00a0as a souvenir, there are a couple of ways that you can shop tax-free.<\/p>\n

First, look for the \u201cTax-free shopping<\/strong>\u201d sign. Shops displaying it are already set up to make your spending simple and easy. Very occasionally, the shop will deduct the VAT at the checkout counter if you present a non-EU passport, but this really is an exception.<\/p>\n

Even if you don\u2019t strike it lucky with an immediate discount, the process is pretty simple: all you need to do is ask for a fattura<\/em> from the shopkeeper when you pay. This is a separate invoice from the receipt, and should include your name (so keep\u00a0your non-EU passport with you) and the details of how much IVA you\u2019ve paid. It\u2019s a little bit of bureaucracy, but will ensure your documents are correct when you come to claim your VAT refund.<\/p>\n

You also need to ask for a blank, tax-free form from the shop keeper since you\u2019ll need to complete one and take it to Customs at the airport when leaving the European Union.<\/p>\n

And even if you don\u2019t spot a\u00a0tax-free shopping sign, you can still shop tax-free. Just make sure you tell the shop assistant that you want to reclaim your VAT, and keep your receipt and the fattura.<\/em><\/p>\n

Tax free tip:<\/strong>\u00a0before you leave the shop, make sure you have four things \u2013 your purchases (obviously!), your cash register receipt, the fattura<\/em> invoice and, where available, the tax-free form.<\/p>\n

Who and what qualifies for a VAT refund?<\/h2>\n

VAT is charged on a range of goods and services including food, accommodation, gas, clothing and jewelry. But not all the VAT is refundable and not everyone is entitled to claim it so here are the key points to remember for a successful VAT refund:<\/p>\n