Here's How To Get Your VAT Tourist Tax Refund When Leaving Italy
Italy is a shopping paradise. Home to the world's most famous cities for clothes shopping — and boasting everything from high-end fashion houses to local boutiques and shops perfect for buying affordable and trendy clothing — the country's style and quality can't be matched. So whether you're eyeing a designer handbag, looking to bring back some fine leather goods, or simply trying to find which Italian souvenirs you should actually buy, from Milan to Rome, the country's retail landscape has a little something for all tastes and budgets.
However, when you shop in Italy, you'll notice that prices include a Value Added Tax (VAT). Known locally as Imposta sul Valore Aggiunto (IVA), this added tax can be as high as 22% on luxury goods and is built into the price of most things you purchase. Luckily, as a non-European Union resident, you're technically not required to bear this cost, and as such, the Italian government allows tourists to reclaim VAT on eligible purchases. All of this ultimately makes your entire shopping experience a lot more affordable.
That said, getting your VAT refund doesn't just happen automatically. Afraid of the paperwork and potential hassle, some people choose to skip out on the process altogether ... only to end up missing out on the benefit. In reality, though, all it takes to get your refund is a little planning ahead and organization — including saving your receipts while shopping and ensuring that purchases meet the minimum spending threshold — as well as ensuring that you leave enough time at your departure airport to take care of the logistics.
Getting a VAT refund at the end of your trip
To get your VAT refund, you'll need to request (and fill out) a tax-free form from the store when making your purchase. Make sure you keep these forms and your receipts very safe — otherwise, you'll forfeit your refund. Once at the airport, head over to the customs office at your departure point with your unused purchases (make sure they are unused), completed forms, and passport. There, a customs officer will verify your items and stamp your forms. You can then submit these validated documents at a different refund desk (look for Global Blue or Planet) or mail them back to the retailer (this is only relevant if the retailer already reimbursed you). Certain airports can be more streamlined and have one VAT desk that does the whole process.
As a precaution, keep in mind that the refund process at the airport can take some time — let's face it, you're not the only one looking to get some money back after a holiday. That said, make sure you arrive early and won't accidentally miss your flight waiting for the lines to clear. Also, if you're planning to request a refund for items you've packed in your checked luggage, make sure you stop by customs before shipping your bags so the officers can examine your goods properly.
It's worth noting that not all purchases qualify for a VAT refund. Generally, you need to spend at least €70.01 in a single store (about $76) to be eligible. Additionally, the refund only applies to goods you're taking out of the EU — not services or items you've used or worn during your stay. Lastly, only non-EU residents can claim VAT refunds. This means that, if you're an EU citizen living outside the bloc, you'll also need to prove your non-resident status before being eligible.