While on holiday in Italian resorts, tourists can reduce shopping costs by using the European VAT refund system. If you are planning not only sightseeing in Rome, Venice and Milan, but also active shopping, it is important for you to know the specifics of processing and paying Tax Free in Italy.
Tax Free System
In the EU countries, there is a Tax Free program for tourists from countries outside the European Union. It is associated with value added tax (VAT), which is included in the final value of all goods sold. VAT is directed to the development of national social programs, but since foreigners do not participate in these programs, they are entitled to a VAT refund after leaving the country.
The basic rate of this tax in Italy is 22%. VAT refunds to foreigners are carried out not by the state, but by intermediary operators who charge up to 50% of the cost of payments for their services.
Therefore, in practice, the return rate for tax free in Italy is not 22%, but much less - usually 11-13% of the purchase price.
In Italy, there are large international companies processing VAT refunds: Global Blue, Premier Tax Free and Tax Refund. Less popular operators are Innova Tax Free, Taxfreeservice and Tax Free Worldwide.
Return Policy
VAT refunds are made only for certain types of goods that are purchased in stores participating in the Tax Free program. There are more than 18,000 such outlets in Italy.
Tax Free in Italy can be issued for clothing and footwear, leather goods and accessories, textiles, jewelry, sunglasses and eyeglass frames, as well as wine and other alcoholic beverages (VAT rate 22%).
Unlike most other EU countries, Italy also carries out VAT refunds on food (meat, milk, vegetables and fruits) at a tax rate of 4 to 10%.
There are goods for the purchase of which the tax is not refundable: tobacco products, cars, gasoline, medicines, weapons, antiques, books, souvenirs. There is no refund for service fees either.
Novice travelers are interested in Tax Free in Italy from what amount starts to operate. In this country, you can apply for a VAT refund on purchases that cost at least 154.94 euros if purchased in the same store. A special certificate is issued for them.
But in Milan, in the Rinascente shopping center, even more favorable conditions have been created for tourists: here you can shop in different stores for smaller amounts, and at the end of the day issue one joint invoice (from 155 euros) at the Global Blue office located at 6th floor.
The article “When is the best time to go to Milan for shopping” will tell you more about exciting shopping in Milan.
VAT refunds also apply to goods purchased from online stores.
To obtain a tax refund certificate, you must have a passport with you. The Tax Free Program is open to non-EU citizens over the age of 18. Children are allowed to make purchases with the assistance of their parents or accompanying adults.
Refunds are paid on goods that are exported to a non-EU country. If you are traveling in Europe and after a vacation in Italy visit other countries, then VAT refunds are processed in the country from which you travel outside the Eurozone.
For example, if a Russian tourist from Italy went to Spain and from there returns to the Russian Federation, he can issue a refund of tax-free in Valencia or another Spanish city for purchases made not only in Spain, but also in Italy.
The general return policy applies to goods that can be taken out of the country in personal baggage. If the number of purchases exceeds the limits that you can take with you on board the aircraft, it is recommended to contact the customs office in advance and resolve the issue individually.
The return period for tax-free in Italy is 3 months from the date of purchase of the goods.
How the payout amount is calculated
Each tourist is interested in how much tax-free is returned in Italy in a "pure" form, that is, the exact amount he will receive after deducting the commission to the intermediary. This amount is calculated by the seller, who draws up a certificate and puts down the amount of payment.
There are different tax rates for non-food and food products. Therefore, even if you bought both in the same store or mall, one invoice is issued for things, and another for products.
The tax free amount in 2021 is refunded by international operators on a progressive scale: the more expensive the purchases, the higher the percentage will be refunded. On the official website of the Global Blue company there is a calculator with which you can calculate the approximate amount of the refund.
Where and how to apply for Tax Free
Tax-free registration in Italy is carried out in accordance with a certain procedure. Let's consider its main components.
- Select a store with Tax Free on the signboard.
- Select products. Remember that the total purchase price must be at least 155 euros (separately for industrial and food categories).
- Tell the seller that you want to issue a VAT refund. In Italian it will sound: "Tax Free, perfavore". You can also use the words: Tax Free check, Tax Free form or Il Modulo Tax Refund. This should be done before a purchase receipt is issued.
- Obtain a Fattura certificate. Since September 2021, the general electronic registration system Otello has been operating in Italy, therefore the presence of a passport is mandatory for the buyer. The seller enters the purchase amount (as in the sales receipt) and the refund amount, as well as your personal data on the Fattura electronic form, and sends the completed form to the tax office for verification. If a confirmation of the deal comes from there, the seller makes a printout of Fattura, pin up sales receipts to it and gives it to you along with the purchased product.
So, to get Tax Free, you need to have a passport, sales receipt and Fattura. The next question is how to get tax refund on purchases in Italy. This can be done in several ways.
In the town
To get your money back after filling out the Tax Free form at the store, you do not have to wait for departure from Italy. In recent years, intermediary companies have opened tax refund offices for tourists in different cities of the country. In 2021, they can be found in Rome, Florence, Milan, Venice, Bologna, Rimini and Catania.
The list of office addresses can be found on the official websites of the companies:
- Global Blue,
- premiertaxfree.com,
- taxrefund.it,
- innovataxfree.com,
- Taxfreeservice.com.
When going to get money, you must take with you sales receipts, Fattura, passport, return ticket (this is necessary for the company to transfer information about the date of your departure from the country to the customs services) and a credit card. Office staff check receipts, verify your credit card details, and pay money.
Global Blue requires you to stamp Fattura checks and certificates and mail them to the office address before leaving Italy.
Otherwise, the amount that was paid to you and the penalty for non-fulfillment of the contract will be written off from your bank card. A company envelope is issued for sending checks. They can be sent by dropping them into a special box at the airport, or by mail from Russia.
In Italy, in premium stores, VAT refunds on certain categories of goods - designer clothes, exclusive fur coats, jewelry and perfumes - can be made locally. In this case, 22% of the cost of the thing is paid immediately, without commissions. The buyer receives a special form, which indicates that the tax has already been paid.
At the airports
The most common way to receive VAT refunds for tourists is at airports. In Italy, payment points are located in the air terminals of Rome, Milan, Naples, Rimini, Verona, Bologna, Pisa.
There are usually many people wishing to receive VAT refunds at the airport, so it is recommended to arrive in advance, at least 3-4 hours before the departure time. The procedure is as follows:
- You go through the check-in procedure and receive a boarding pass. If you have already registered online, you can skip this step.
- You go to customs and take the queue. All items for the purchase of which you want to receive a VAT refund must be with you. Therefore, they cannot be checked in baggage in advance and cannot be wrapped in plastic wrap.
- After waiting for your turn, present your purchases, receipts and Fattura to the customs inspector. Items should not show signs of use. After checking, the customs officer puts a stamp on the checks.
- You go to the payment point of the intermediary company, which is indicated in the certificate. They will check your documents and checks with customs stamps, and pay the money in the form of cash euros or wire transfer. If you choose to receive cash, you will have to pay a commission - 3 euros from each form
Each company has a limit on the amount that can be dispensed in cash (usually up to 1000 euros). If you have chosen the option of payment to a credit card, then the money will be sent within 14 working days.
With the start of the operation of the Otello 2.0 electronic system, payments can be received not only in offices, but also in special machines that will be installed at airports.
Aeroporto di Fiumicino (Rome)
Passengers on flights from Russia and post-Soviet countries depart from Rome's Fiumicino airport via terminal T3. Here you can get an electronic customs stamp through the Otello system right at the Global Blue office, presenting the purchased items, passport and boarding pass.
The Global Blue Tax Free office in Rome is located next to check-in counter 330 and is open from 7.00 am to 10.00 pm. The maximum amount for cash withdrawal is EUR 2,999.50 per passenger, per card - EUR 4,999.50 for each tax-free form.
If you would like to receive Tax Free at Rome Airport in cash, please note that there is a commission charged for this. For reimbursement above 800, 01 euros, it is 1% of the payment amount.
Aeroporto di Milano
Milan Malpensa Airport was the first in Italy to switch to the Otello 2.0 electronic check-in system. You can get an electronic customs stamp at the Global Blue offices, which are located in terminal T1 near exit A and on the 2nd floor near customs control counter 12.
Opening hours - from 05.00 to 23.30. Payment terms are the same as in Rome.
Premier Tax Free and Tax Refund offices can be found on the 1st floor in the Depart area (boarding area B 12) and on the 2nd floor in the Check-in area 12. They are open from 6.00 to 24.00.
Aeroporto di Federico Fellini
At Rimini airport, the Otello electronic system has not yet been introduced. The Global Blue office is open only on Wednesdays and Saturdays before flights, it is closed on Sunday.
Money is issued daily by the ForExchange partner company from 05.15 to 20:45 - but only according to Global Blue certificates obtained in Italy. You will not receive immediate payments for purchases made in other EU countries.
Cash pick-up points are located on the second floor.
Other airports in Italy
At Venice Marco Polo Airport, you can get VAT refunds in the departure area on the 1st floor at two Global Blue offices, which are open from 06.00 to 22.00.
The Venice airport uses the Otello electronic system and has a VIP zone with expedited service.
In Naples, you can get a tax refund at ForExchange and Alisud, but only with certificates obtained in Italy.
In Verona, tax-free funds are paid by ForExchange, a partner of international operators, and it refunds tax only on Italian purchases.
In Russia
If you do not want to waste time queuing at the airport pick-up points or city offices, you can get your tax refunded at home by returning to Russia. The main thing is that all checks and forms must have customs stamps.
It is necessary to send an application for receiving payments no later than 3 months from the date of purchase.
There are banks in Russia that cooperate with European Tax Free operators. You can find a list of them on the official websites of intermediary companies.
The most popular company among Russian tourists is Global Blue. You can receive payments from this operator in Moscow in the following places:
- "New Moscow Bank" (lane Myasnitsky, building 2/1, building 1; lane Bolshoi Savvinsky, building 2-4-6, building 10).
- Energotransbank (Solyanka str., Building 3, building 3).
- Lanta-Bank (Novokuznetskaya st., Building 9, building 2; Novaya Basmannaya street, building 35, building 1; Gogolevsky boulevard, building 23).
In St. Petersburg:
- Non-commercial organization "Global Exchange" (Korablestroiteley st., 14).
- "AKB Slavia" (lane Grivtsova, building 4 / A).
- "Energotransbank" (Malaya Morskaya str., Building 23, letter A).
- "Lanta-Bank" (Karl Faberge square, building 8, lit. B)
In Kaliningrad: Energotransbank (Klinicheskaya St., 83a; Chernyakhovsky St., 3).
In Pskov: "AKB Slavia" (Sovetskaya str., Building 31).
The maximum cash refund amount is € 1,500 for each Fattura certificate. Bank transfer to credit cards - maximum 5,000 euros. When issuing money in cash, an additional commission is charged.
In recent years, the number of Russian banks that, by agreement with operating companies, carry out VAT refunds has sharply decreased. In particular, VTB-24, MDM, SMP Bank, Intesa and others stopped providing these services. Therefore, it is recommended to clarify information about the Tax Refund service on the official websites of banks.
Additional questions
Novice travelers make mistakes when using the duty-free system, because of which they have difficulties with VAT refunds. Let's consider the most common questions.
- Check Fattura certificates carefully - due to errors in filling out the form, you may be denied a VAT refund. It is recommended that you make copies of all receipts and completed forms.
- According to the rules, in order to pass customs clearance before departure, the goods for which you want to receive a tax refund must be in their original packaging and have no obvious traces of use.
- When buying any Apple technology (including iPhones), tax-free is returned only on return flight and only in non-cash form.
- Novice tourists coming to Italy often cannot understand what the tax code is, which must be entered in many cases of cashless payments. It is required when making bank transfers, buying goods online or purchasing tickets from the Trenitalia railway company. This refers to the Codice fiscale - an Italian identification number that tourists do not have. But since the "Tax code / VAT" column on many electronic forms is mandatory, and you cannot leave it blank, you can generate a code using a special program.
Duty Free
There is another place in the country where you can buy goods without VAT. The duty-free zone in Italy is Duty Free shops, which are located at airports, on cruise ships and ferries that run between countries. Passengers of international flights who have already passed registration and border control can buy goods in them.
Unlike Tax Free, the services of Italian Duty Free shops can be used not only by tourists from third countries, but also Italians, as well as citizens of other EU countries.
The price tags of goods sold in Duty Free indicate the cost excluding VAT. Shopping here is more profitable than under the Tax Free system, because the tax is deducted from the price of the item in full.
In Duty Free in Milan and other cities of the country, you can buy branded clothing, shoes, accessories and perfumes (Armani, Boggi, Furla, Gucci, Hermès, Camiccissima, Bvlgari), watches and glasses (Armani, Gucci and D&G), wine.
A large duty-free complex, popular with Russians, is located in Bergamo, the airport from which low-cost airlines fly.
Conclusion
Shopping in Italy is popular with Russians. Prices for branded goods in this country are often lower than in Moscow, besides, tourists from the Russian Federation can take advantage of the duty-free shopping system. Shopping at Tax Free shops allows you to save up to 11-13% on the price of each item. Even more favorable conditions are provided by Duty Free shops at airports, where the price excluding VAT is 22% lower.
