Getting a VAT Refund in Italy: What to Do

If you're heading to Italy and are planning to do a bit of shopping, you may need to pay something called a VAT (or Value Added Tax).

What many travelers don't know is that, in some cases, the VAT you pay can be refunded to you.

While the hassle might not be worth it for small purchases, if you're making larger purchases while abroad, it definitely can be.

In this guide, we're going to take a look at:

• What Italy's VAT is.
• How it works.
• How to request a refund.

Italy's VAT is a consumer tax

While it isn't the same thing exactly, a VAT is often compared to a sales tax, something American shoppers are more familiar with.

VAT, short for Value Added Tax, is the term used in Europe. In Italy specifically, the tax is called Imposta sul Valore Aggiunto, or LVA. If you see LVA, know that it's the same thing as VAT. We will use the term VAT in this article for consistency.

Like true for many countries, Italy's VAT has different rates depending on the type of good you're buying.

That said, Italy's standard VAT is 22%.

There are lower rates, too, though. For instance, food, jewelry, and alcohol are taxed at 10%. Food is typically 5%-4%.

You do still have to pay

If you're buying goods when traveling through Italy, you are going to have to pay VAT.

However, some shoppers are exempt from paying VAT. Even though this is the case, they will still be required to pay it. However, they are also eligible for a refund.

While uncommon, this is the case in the US as well.

For example, Oregon doesn't have a sales tax. So, when Oregon residents travel to another state, like Washington, they are technically exempt. While they do have to pay it at the time of their purchases, they can go through a refund request process later.

When shopping in Italy, just know that you will need to pay the tax, but that doesn't mean it can't be refunded later (for those who are eligible, anyhow).

Who can get a refund

In Italy, there are a few conditions that need to be met in order for you to be eligible to request a VAT refund.

You must:

• Not be an EU resident (and be able to prove that). This means that you live outside the European Union.
• Meet a 70 euro spend minimum threshold.

How to get a refund

If you're eligible, requesting a VAT refund in Italy is straightforward, but it does involve a series of steps you will need to take.

In the European Union, VAT is handled country-by-country, not at an EU level. This means that the processes for requesting (and receiving) refunds can differ depending on which country you shop in.

In order to be able to request a VAT refund, you need to:

• Ask for a Tax Free/VAT refund form at the store while shopping/paying.
• Fill out the form(s). (Make sure you meet the €70 minimum payment threshold.)
• Do not use your new items. It is so tempting to put on that new outfit, but once you use the item, you are no longer eligible for a tax refund. The items must be unused, with tags on.
• Make sure your new items are easy to access in your packed bag. At customs, before completely leaving the EU, you must declare your goods and present your completed tax refund form. Customs must stamp this form. If your form does not have an official stamp received in Customs, you will not be able to submit it for a refund.
• Return your completed and stamped tax form. There may be an official third-party company assisting. Either way, the tax form should indicate where to return it. Sometimes, companies have kiosks where you can hand in your form. Other times, you may need to mail it. The form will have directions on how you can submit it.
• Receive your refund!

FAQs about Italy VAT

Do you have to pay VAT in Italy?

Is there a minimum spend for a VAT refund in Italy?

What is Italy's VAT rate?

Is there a time limit to receive a VAT refund?

Who is eligible for an Italy VAT refund?