VAT refund in Italy: A complete guide to tax-free shopping in Italy for tourists

Whether you are making a break for Milan’s luxury shopping or Rome’s ancient photo ops, Italy is an excellent place for your next holiday. From Gucci to Prada, Italy’s luxury goods are regarded as the best in the world, even for London’s posh. In this article, you’ll learn how to offset your holiday expenses by reclaiming VAT upon exit from Italy.

So before you board your flight to Milan, home of fashion, fine wine, and the famous dessert called Panettone, take note of how to claim a VAT refund in Italy. It’s a sweet deal!

How much is VAT in Italy?

First off, in Italy VAT is called Imposta sul Valore Aggiunto (IVA). Non-residents of the European Union can sometimes reclaim a percentage on this VAT when exiting Italy with the goods stored in their baggage.

Italian VAT is divided into four different rate:¹

• The standard rate of 22%, which applies to several goods and services, especially luxury goods,
• The reduced rate of 10%, which applies to the goods and services that people generally access daily,
• The reduced rate of 5%, which applies to services meant for the elderly, disabled, and vulnerable,
• And the super-reduced rate of 4%, which applies to staple foods such as bread, books and newspapers, and certain medicines.
• There are also zero-rated goods, including those delivered to embassies and consulates or to recognised international organisations such as the United Nations. This last class of goods does not inflict VAT.

Here’s a table to help you understand the break-down:

Tier	Rate	Applicable goods
Standard rate	22%	Luxury goods and other goods
Reduced rate	10%	Foods, beverages, home-delivery, public transportation, some pharmaceuticals and medical devices, hotels, theatrical performances and other artistic services
Reduced rate	5%	Services provided to the elderly, disabled, immigrant, and vulnerable, as well as certain herbs for cooking
Super-reduced rate	4%	Food staples and the press
Zero-rated products	0%	Exports destined for countries outside of the EU and services linked to global transportation

How much VAT is refunded in Italy?

Although many products hold a VAT as high as 22%, tourists will not receive a full refund of 22% on a given good. There are administrative fees, and the actual refund amount or percentage may differ case by case.

However, there’s a piece of good news. Whereas prior to 2023, the minimum purchase amount for eligible goods was 154.95 EUR, this amount has shifted down to 70.01 EUR.² The shift brings considerable opportunities for tourists and for the Italian tourism industry alike! So if you have an eligible purchase with a total price tag higher than 70 EUR, then you will easily claim back some of your investment before your departure from Italy.

Who is eligible for tax-free shopping in Italy?²

Someone who habitually resides outside of the EU (termed a “visitor”) is eligible for tax-free shopping in Italy. In some cases, you may have been living in an EU country for a period of time and for a specific purpose but still meet the criteria. For example, you may still meet the criteria if your permanent home listed on your passport is outside the EU and you are not intending to return to the EU anytime soon. European Union citizens who now live permanently in a non-EU country may access a VAT refund at departure from Italy.

How do you get a VAT refund in Italy?³

Receive a tax exemption form

While you are in the store, purchasing your items, you must request a tax exemption form from the seller. You should check to make sure the information entered by the store personnel is accurate, down to the spelling of your name and the house number of your home address.

You must not wear or use the goods you purchase, and you must keep all tags on the products.

Have the forms stamped

Before you check your bags or board your flight home, you must follow the directions provided here to successfully reclaim your VAT. In many cases, you may only make your claim at customs 5 hours before the set departure time of your flight. You can do this at any exit port, such as an airport or a harbour.

You should claim your refund before exiting the European Union, at the last port within the European Union during your travels.

Obtain a VAT refund

Customs will inspect your items to ensure that they are new and carry out additional security checks where necessary. In some cases, you will need to visit the specific company providers/operators of your invoices, whose offices are inside the VAT Refund Area. Operator stands are stationed as such for travellers leaving Rome through Rome-Leonardo da Vinci Fiumicino International Airport.

The process for claiming VAT is different if you are storing the purchased items in hold luggage than if you are storing the purchased items in hand luggage. You must research the process specific to your local port and enter the VAT Refund Area, if required.

Contrary to popular belief, reclaiming VAT at exit ports throughout Italy is not a big hassle. You must be attentive to detail when completing the forms, and you must not remove tags from or tarnish your purchased items. Then, at the exit port, you must comply with the port’s customs procedures, providing ample time to complete security checks before the departure of your flight.

To make matters even simpler, you might consider a Wise debit card, which can help you minimise the costs on your VAT refund. You can receive your refund conversion fee-free with a Wise debit card if no currency conversion is involved. Or, even if a currency conversion arises, Wise only charges a small fee and converts at mid-market rates without markups. This card allows you to hold 40+ currencies including GBP and EUR so that you can receive your refund in EUR and keep your EUR stashed for a future visit to Italy.

Get your card now

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

---

Sources used for this article:

1. Agenzia delle Entrate: Business - General VAT rules and rates - General VAT rules and rates
2. Agenzia delle dogane e dei Monopoli: Rimborso IVA
3. Rome Fiumicino "Leonardo da Vinci" Airport: Find out how to get a VAT refund

Sources last checked on 2-May-2024.