Going to Spend Big Money in Italy? Here's How to Get a VAT Tax Refund!

7/14/2016

Note the "IVA" indicated in the circle--the tax is included in the purchase price

When shopping in Italy, or any country in the EU, you will always be paying the VAT (Value Added Tax), or, as it's called in Italy, the IVA. Look at the bottom of your Italian shopping receipt and you'll see the tax line item for the IVA. Keeping track of these receipts--and the tax you paid for your purchases--could save you money the next time you travel in Italy. All European Union have a VAT that they levy on purchases, with each country setting its own rate. The VAT rate in Italy is currently at 22%, and will rise to 24% in 2017. The tax is applied to travel expenses, meals, and merchandise. As you can see, that 22% can really start to add up. The good news is that if you are not a resident of the EU, you can get some of that VAT money back. You see, tourists aren't obliged to pay the tax, but because the VAT/IVA is incorporated into the price of nearly everything you purchase, the tax is simply part of the purchase price... the only way to get it back is filling out forms, and following the somewhat complex rules.

What Purchases Qualify for a VAT Refund in Italy?

First, you cannot get a refund on the tax on accommodations or food in Italy. There is an exception when traveling for business in Europe, but we won't get into that here. Any other purchases you make in Italy where you see the “IVA” added, are eligible for a VAT refund at the end of your vacation, including souvenirs, ceramics, clothing, jewelry, leather and even some services.

Keep in mind that there’s a minimum amount required in order to claim an IVA/VAT refund--currently in Italy the minimum purchase amount to submit a VAT refund is €154.94--all spent in one store at one time. So, for instance, if I want to buy an Italian guitar while in Italy, this would fit right in. It would also work when buying ceramics in a single shop Vetri Sul Mare on the Amalfi Coast--a town with many ceramics craftsmen (but won't work if buying a few things in several different shops). There are many interesting and unique shops in Rome, Venice or Florence that have a wide array of gifts perfect for the Voyager--either for yourself or gifts for loved ones back home. Planing your shopping sprees in shops that have a wide array of products is a great way to make purchase in one shop beyond the €154.94 minimum.

Other rules also need to be followed:

Anything you bring back out of the EU is for personal use only (how would they know?)
Purchases must be able to be exported (carried) in your personal luggage (If packed in your check-in luggage, you must open them at customs).
Items must be reported and go through customs.
Items must leave the EU within three months of the date of the purchase.

There are actually many merchants that will instantly remove the IVA tax as soon as you show them your Non-EU passport. Use your passport as leverage, making them believe you won't make the purchase if they won't remove the tax amount. This is one way to circumvent the entire refund process. But many vendors simply don't want to bother with the paperwork on their end. Keep in mind, however, that even if the merchant is willing to take the VAT amount off the purchase price, you’ll still need to get the receipt stamped at customs before you leave the country. Keep your receipts with each item purchased.

How to Get a VAT Refund in Italy

Here's why many people don't even bother about getting a refund--it can be a real hassle.

First, you need to ask the vendor about getting a VAT refund before leaving the shop. They need to give you a separate receipt--a copy known as a fattura--in addition to the one that comes out of the cash register. The fattura should include your name (use your passport as I.D.) and the amount of the IVA/VAT tax for the purchase. If there are blanks on the “fattura” for you to fill out, ask what information you need to fill in. Keep all forms and receipts, including the additional “fattura” receipts, in a secure place.

Ok... now part requires extra time at the airport when leaving Italy:

Gather together all your purchases (a soft, collapsible duffle works well for smaller carry-on purchases that might be fragile or valuable), along with their respective receipts and forms and then bring them to the local customs office at the airport.

When it’s your turn at the front of the special customs line, you’ll present all your receipts (and your purchased goods for inspection, if that’s required) and they’ll stamp everything. You then need to get those stamped receipts back to the merchant where you initially purchased the items. Yes--believe it or not. Many bigger stores work with companies with branches at airports and other international gateways in Italy (Global Refund and Premier Tax Free are two of the most common), which means you’ll need to take your stamped receipts to the appropriate agency’s office in the airport in order to get a refund on the VAT. You’ll either get a refund in cash right then, or they’ll refund your credit card. They take a small cut of the total amount. If, on the other hand, the merchant from whom you made your purchase doesn’t work with one of those in-airport agencies, then you’ll need to mail your receipts back to them directly, either from the airport before you leave or from home.

I know what you're thinking... That you may never hear from the merchant again and never see a refund anyway. This is possible, but many shops are fairly honest and will honor the request for a VAT refund. You might get a refund sent to you in Euros, requiring a fee for converting to dollars again. Complicated, right? This is why many people forget about VAT refunds. It is a real hassle. Of course, this is even more incentive to use your Passport as leverage when making the original purchases... try really hard to get them to take the VAT off voluntarily, or you won't buy. It does work.

How Do I Avoid All This Hassle?

The best way to avoid the hassle is to shop in stores that display a Tax Free Shopping or Euro Tax Free sign in their window. There are enough shops with this logo displayed in the larger Italian cities to satisfy your shopping needs.

In these Tax Free Shopping stores, you’ll need to show your passport when you make your purchase, and they will give you a check for the VAT amount along with the receipt for the goods. When you get to the airport, you’ll need to go to the line at the customs office for VAT refunds and have your receipts stamped, and then take the receipts--along with the check the merchant gave you--to the “Tax Free” booth in the airport where they’ll give you cash for that check. These booths are typically near the airport’s Duty-Free Shop. That's a bit easier, right?

Steps & Tips for Getting a Refund

Look for stores displaying Global Blue Tax Free Shopping signage in the window.
When paying for your purchases ask the shop staff for a Tax Free Form.
Tax Free Forms are available in three versions: one blue, one white and one similar to a credit card receipt. Fill in all the required fields in block letters, using the Latin alphabet.
Receipts can be accumulated to reach the minimum amount if the purchases were made on the same day and in the same store.

Remember: Incomplete Tax Free Form = No refund

At the airport, allow enough time for the refund process before your flight departs.
Before you check in for your flight, go to the Customs desk and present your completed Tax Free Form, passport, and purchases to get a stamp on your Form.
The goods have to be sealed and unused. Don’t pack them away in your check-in luggage as you will need to show them to the Customs Officer.

Remember: No Customs Stamp = No Refund

Go to a Refund office displaying the Global Blue logo.
Present your stamped and completed Tax Free Forms to receive the refund in cash or to credit card.
You may also opt to mail your stamped completed Tax Free Forms to the address of the Processing Centre and receive your refund on your credit card .
Please observe that at some airports a cash handling fee per "Form" will be charged should you require an Immediate Refund in cash.

The refund you receive is the VAT minus Global Blue’s service fee.

Refunds are paid on all goods that are exported in the traveller’s personal luggage.
If goods are too large to be carried in hand luggage, it is recommended to contact the Customs in advance.
VAT is not levied on books and therefore refund cannot be obtained. The purchase amounts for books are counted to reach the minimum purchase amount if the books are bought at the same time as other VAT qualifying products.

Additional Tips

The post delivery is free of charge from all the world if you use the Global Blue prepaid envelope provided by the shop. Note that it is sent by regular post.
If you have not received the prepaid envelope you can use a standard envelope (at your expense)
In order to prevent a possible loss of the documents, we recommend you to use secured mail service (e.g. registered mail or courier- at your expense)
Before sending the documents, please make a copy of them or write down Tax Free Form number (DOC ID) of each Form for your reference.
In order to assure smooth processing of your refund send us just Tax Fee Forms filled in completely and correctly

LINK: Guide to VAT refund for visitors to the European Union

Tax Free Shopping Card... No need to fill in paperwork in shops!

Ok, so after going through all of the above, here's an even simpler way to do some tax free shopping in Italy...

Whether you’re a frequent international shopper or planning a special trip abroad, you can easily save both time and money when you shop tax free with the new Shop Tax Free Blue Card. Membership is free!

The Shop Tax Free Blue Card allows you to claim your tax savings without the hassle of filling in Tax Free Forms by hand in busy shops each time you buy something. With a swipe of your card all your details will automatically be filled out on your Tax Free Form which is then printed out for you by the sales assistant. In this way, language communication problems and mistakes are avoided and you save time and money for a more convenient and enjoyable Tax Free Shopping trip.

Global Blue works with around 270,000 stores worldwide so you can enjoy the benefits at participating shops and take advantage of member only promotions.

LINK: Shop Tax Free Blue Card sign-up

There's an App for Tax Refunds

The Global Blue App from Google Play (for Android) and iOS (for iPhone and iPad) connects travelers to the world of Tax Free Shopping with just one click. Global Blue’s app will guide travelers to the very best stores in many European cities, with full contact details and interactive maps. You can search the app for stores by location, product or brand.

The Global Blue App also helps a shopper to figure out their savings with the Tax Refund Calculator and step-by-step instructions on how to complete the Tax Free Shopping service. A re-engineered Refund Tracker is coming soon. Do a search in your favorite app store on Global Blue.

So, there you have it... a fairly intensive introduction to getting your VAT taxes refunded in Italy. For more information: Global Blue Q&A

--Jerry Finzi

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Copyright Jerry Finzi/Grand Voyage Italy - 2016

10 Comments

Kathy Schwab

11/23/2017 01:58:16 pm

I purchased some leather goods in 2 different shops in Florence, Italy in September. Both shops gave me a form to fill out and take to the airport to have the Customs Agent stamp and then mail. I was able to leave one of the forms with a person near the Duty Free shops, but the other one had to be mailed, and I think it was to somewhere in Ireland. Unfortunately I never recorded any of the numbers from these forms. I just checked my MasterCard statement, and as of November 20th, I have now been charged $141.91 CDN with a line that says "Tax Refund Rejected Premier Tax FIRL 91.73 EU".

One receipt was from a shop called Leather Florence near the Duomo totalling $573.00 CDN ($379 EU) and the other receipt was from a shop called Ashkevari Arash totalling $331.00 CDN ($331 EU).

I'm not sure if there's anything I can do to retrieve this amount back.

Kathy Schwab
Richmond, BC Canada

Felix

4/3/2018 01:23:04 pm

Kathy,
On my way back to the US from Italy (Florence). Unfortunately, I think that if you decided to pursure this, it will take so much time, that it will not be worth the effort.
This entire system of VAT refund, I do believe has the consequence of tourist buying more when in the EU. I do think that it is much more complicated than it needs to be. There are 3rd party companies that get involved (many with different requirements and different systems.. to make it worse, these systems and requirements even vary by airport!). I do believe that the VAT being at 22% is high. But when I go shopping in Italy, I try to make my decisions on paying this tax. If I get it back, I consider this a bonus. Consider the fact that the EU countries state that the 22% VAT tax does not apply to tourist. Yet, only 12.5% or less is actually refunded. Probably less than this when you consider ALL the fees that can be involved for the process. For example, for each receipt, you can be charged anywhere from 2 EU to 6 EU. And, if you want your money back sooner, be careful to do this at a official “Global Blue” or “Premiere” booth at the airport. Many smaller airports such as PISA have no official booths. Yet, you will see signs at Exchange booths that say Global Blue or Premiere. If you go there, they will be happy to give you your money on the spot, but you have to do an exchange with them which will cost you and additional 11.9% for this service. 11.9% of the refunded amount. Really?

Jerry

4/4/2018 11:08:34 am

Kathy,

Thanks for that great first hand perspective on this. It does seem overly complex and that's why when we travel, we never even consider shopping for things we can easily find at home anyway. (Never understood people--for instance--going to a place like Sorrento and shopping in international name brand shops). Instead, we should look for unique items that are made by local craftsman that can't be purchased at home.

Again... thanks for the insights! I'm sure this will help other Voyagers that are considering the Global Blue deal.

Ciao!

--Jerry

http://www.slickcashloan.com/ link

6/13/2018 05:39:52 pm

Thank you very much for keep this information.

Mike link

9/20/2018 10:58:27 am

I was in Sienna on a bus tour with my wife. She purchased a purse from a a high end shop. Unfortunately we both left our passports back at the hotel. The vendor told us to just show the tax refund office at the airport the receipt and we could fill out the paperwork to get the VAT back. No such luck. They told us we needed the paperwork from him. Is there any other way I could submit a form to the government for a refund

Jerry F.

9/20/2018 03:25:29 pm

Mike,

It sounds like all you had was the cash register receipt and not the "fattura" which you needed to get from the retailer, and fill out some information at the time of purchase. You might be out of luck, although I have read about people who have brought their paperwork (receipts, fattura) to an Italian Embassy or Consulate (in a big city near your location) after returning to the States to get stamped. They will charge a hefty fee to do this... I think about $30-40. Even then, IF you have all your paperwork, it might take months to get the refund. It might not be worth the hassle. Good luck!

Laura KRIAUCIUNAS

9/24/2018 03:06:58 pm

Dear Jerry,
I was a at the Pisa airport on Sept. 23rd and I was told by the customs officer that a stamp is no longer required. They made copies of my passport, travel documents and tax refund receipt. I mailed off my receipt in the prepaid envelope. However, as of today, I am unable to find any documentation as of this new change. I did take pictures of my receipt. Please advise. Thank you, Laura

Gail Udemans

8/13/2019 03:18:54 am

I spent Euro 340 on shoes at Gilardini in Florence which included Euro 61.31 in tax and Global Refund Portugal only refunded Euro 42-00 from which they deducted a Euro 3-00 service fee so I only received Euro 39.00.

What a rip off - in future I will negotiate with the stores direct to deduct the tax and reduce their prices accordingly.

Claudio and Mary Cavalieri

10/25/2019 11:49:56 am

Hi we live in Canada and we purchased some items. We received the Global Blue envelope when we were in Italy but we do not have a form to fill out. We do have all our bills. The envelope says to write our credit card number and mail it. However I don't have a form. What should I do?

10/27/2019 05:08:38 am

Mary,
Unfortunately, you will not be able to receive a refund without a form.
I know this, because I once purchased some clothing items from a Ferrari shop in Italy, assuming I could take care of this later. I discovered that I needed this Vat Form the following day. I returned to the store the following day with my receipt asking for the form. I was told that this was no longer possible. I should have informed the cashier that I needed this form at the time of purchase.
So, this is what I think is going on.
1. VAT Tax deals are considered an incentive for tourists to spend money in Europe.
2. Merchants often advertise VAT Tax exemption to entice tourists to purchase.
3. Salespeople consider the VAT tax documentation a pain in the ass.
4. “if” the tourist shows up at the register with items all ready to purchase, without needing any enticement to purchase, the salesperson of course will prefer to complete the transaction without the hassle of the VAT documentation. Remember, by law they are required to go through a few steps to verify that you are indeed a tourist. Ie check your passport, which you ”should“ be required to show the cashier And list the items you purchased on this form.
Initially I thought the merchant had some financial burden regarding this VAT refund. But the fact is, they can use it to encourage tourists to spend more, however, given the added “hassle” for them to document the VAT refund transaction, they decide to “not” remind tourists if the tourist has already made up their mind to purchase.

My advice, shopping in Europe.
Consider the VAT refund process and benefit as never guaranteed.
I do a Risk Adjusted Refund (RAR)
Ie I look at the Maximum advertised refund at 17%.
And the probability of getting all of this 17% as about 65%.
Therefore, RAR is .65 x 17% = 11%.
If you do this correctly.
However, at this point, “in my opinion”, you will not get your refund.

And yes, it is somewhat a scam.
Because the government has chosen to involve many third parties such as Global Blue to verify the tourist status of customers, you can imagine the hundreds of millions of dollars involved.
However, consider this to be somewhat of an ok thing.
Because, Global Blue will only get paid when you get your refund.
However, it looks like they get about 5% or more of your 17% refund. Ie 5/17 = 29.4% of your refund.

Imagine Global Blue getting 29.4% of the hundreds of millions of dollars of VAT refunds.
And they are a private company.
There are other companies that handle refunds aside from Global Blue.

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Going to Spend Big Money in Italy? Here's How to Get a VAT Tax Refund!

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