Vat Refund in Italy
In Italy Vat or Value added tax is known as ‘IVA’. In Italy the standard Vat rate is 20%.
In Italy VAT is refundable in the following cases as per Italian VAT law (n.633/1972) based on Community provisions:-
♦ If EU non-resident travellers purchase goods in Italy for personal or familiar use
♦ The foreign companies dwelling in a EU country - if eligible for VAT in their own country - can refer to Italian Tax Authority to retrieve the VAT paid on expenses such as:
♦ booth rental and furnishings for participation in trade shows,
♦ other trade show-related expenses such as electricity, air and water supply, flowers, booth attendants and interpreters,
♦ participation fees for training courses or conferences,
♦ advice fees,
♦ oil and toll costs, especially for International Transportation Companies,
♦ expenses for installations and assemblies. Only under particular conditions
♦ Hotel accommodation expenses.
♦ If any entrepreneur, resident in every Country of the UE and also in Switzerland and Norway, purchases or imports of movables and/or carried out services in Italy.
♦ The entrepreneurs resident or domiciled in an extra-UE country may also apply for VAT refund appointing a TAX Representative in Italy.
♦ The goods are utilized for personal or familiar use and are personally carried in the baggage;
♦ The overall value of goods surpasses 154,94 Euro (VAT included);
♦ The purchase is certified by an invoice containing the description of goods, the personal data of the traveller as well as the particulars of his passport or of any such equivalent document;
♦ The goods leave the EU territory within three months after the end of that when the purchase was made;
♦ The goods go through some special customs formalities;
♦ The invoice is returned to the Italian seller within four months after the end of that when the purchase was made.
The minimum purchase amount required is €154.94 for reclaiming a VAT refund in Italy.
The amount should be less than €25 if the claim is made annually. On the other hand the claim should not be less than €200 if the claim is made quarterly.
Deadlines for claims.
All the documents required for making a refund claim should be submitted by 30th June of the year following the invoice date to the concerned tax authority in Italy. If any claim is submitted after this period, the claim is subject to cancellation.
The competent Tax Authority will disburse the refund no later than 6 months from the date the claim is submitted, by means of a direct bank transfer to the account held by the applicant.
Vat can not be claimed on hotel accommodation; restaurants, food and drink; taxis, agencies travel; the acquisition or hire of passenger motor vehicles, aeroplanes, pleasure boats and motor cycles; petrol, diesel or other fuels for the above transport.