Milan, Italy: Tax Free Shopping is available!  In all of Italy, non-EU residents can enjoy traveling and saving on purchases made during their visit to Milan and Italy. Whether you like petite luxury boutiques, mega shopping malls or love the deals found at designer outlets,  tax-free shopping offers extra value for any fashionista.

In this guide, we will answer the following questions:

Tax free shopping is when the customer is exempt from paying certain taxes on the items that they purchase from a store. This type of transaction only takes place at stores that have been registered as having tax-free privileges under EU laws. In Italy, visitors who are permanent residents in non-EU countries can shop and get reimbursed for the taxes.

There are thousands of stores in Milan and around Italy offering tax-free shopping. Stores like these are more common in the center of larger towns and cities in Italy.

FAQs: Tax Free Shopping in Italy

Shopping in Italy

Unlike many countries where items are priced and then you get to the till to find, you must pay more for tax, in Italy, the tax is already added to the price tag.

So, for example if you find a €700 euro bag at the Fendi outlet store, which had been discounted to €350, the €77 IVA tax has already been added to the price. By requesting a tax rebate, you get an even greater bargain!

The more you shop, the more you save.

Just think of how much you can save by asking a rebate on all the tax-free shopping you do in Milan!

When is the best time to go shopping in Milan?

The best time to go shopping in Milan largely depends on what you’re looking for. If you’re interested in high-end fashion, the best time is during the biannual sales periods, which typically occur in January for the winter collections and July for the summer collections. During these times, you can find designer items at significantly reduced prices.

However, if you want to experience the city at its most vibrant and see the newest collections, consider visiting during Fashion Week, which usually takes place in February/March and September/October. Design Week, usually held in April, is also a good time to see what’s trending. Please note that the city can be quite crowded during this time, so be prepared.

Is Italy expensive for shopping?

Depending on where you go and what you buy, the cost of shopping in Italy can vary widely, making it difficult to provide a universal estimate. A higher price tag is usually attached to the high-quality of Italian goods and designer items for which the country is known. However, if you are willing to shop around and negotiate, you can find some excellent deals.

The cost of certain items, such as those from high fashion labels or the highest quality of electronics, may be significantly higher in Italy. But there are also many budget-friendly choices, particularly for staples like food and homewares. In addition, you can save money by shopping at discount stores and outlets.

While the overall cost of shopping in Italy may be higher than in other countries, savvy consumers who are prepared to do their homework can find excellent value for their money.

Tax Free Shopping in Italy

What is Tax-Free shopping in Italy?

Sales tax in Italy is referred to as IVA (Imposta sul Valore Aggiunto) or VAT (Value added Tax).

The standard VAT rate is 22% and is applied to goods such as fashion, textiles, leatherwear, jewelry, glassware, sunglasses, wines and other alcohol.

Some items have lower tax rates such as:

•  4%, food, beverages and agricultural products
•  5%, for some foods
• 10%, for the domestic electricity and gas supply, medicines, other goods and services.
  
  An extensive table of items and tax rates can be found on the Italy Department of Finance website:  def.finanze.it.

Tax free shopping offers a tax refund to non-EU residents on goods bought with IVA tax within 3 months prior to departure. Only non-European residents may benefit from a tax refund.

As of its EU-exit date, residents of the UK can now also benefit from Tax Free shopping in Italy.

• Meals or food eaten during your stay
• Entrances to museums
• Even if new, items of clothing or accessories that have been worn
• Petrol
• Purchased automobiles

In short, you will not be refunded for the Ferrari you just bought, the Swiss chocolates you have already eaten or the designer sunglasses you are wearing!

What’s the difference between Tax-free and Duty free shopping?

Duty Free vs Tax free

Duty free shopping is different than Tax free shopping. Duty free goods are free of excise tax applied to the retail price, whereas on Tax free goods the buyer pays the tax and then is reimbursed.

Duty Free, refers to areas where import, sales, value-added, or other taxes do not apply.

Generally, these areas are found in airports, cruise ships, military schools or particular geographical areas. 

In the most common case of airports, the sale under the Duty Free regime is accessible in Europe in the so-called Non-Schengen area, i.e. after passport control and only if the customer has a direct ticket outside the EU area. In this case, the customer will be able to buy the items at a fully determined price.

Who is eligible for Tax Free Shopping in Italy?

Anyone over 18 and a permanent resident in a non-EU country is eligible for tax-free refunds on shopping in Italy.

Shoppers eligible for VAT / Sales Tax Refund from Italy:
Non-EU residents

Currency:
Euro (€)

VAT rate:
22%

Minimum spend:
€ €70.01 Euro

Time limit for customs approval:
3 months from the time of purchase

How do I prove I am eligible for tax free shopping in Italy?

You must present your passport or an id document with your date of birth and residential address, in-store when purchasing the goods.

Where can I shop Tax Free in Italy?

Stores displaying a “Tax Free Shopping” emblem. Boutiques in the historical center of Milan offer tax-free shopping. Shopping centers, department stores, and malls offer the benefit of tax-free services.

Pro tip: If you do not see a tax-free shopping emblem, always ask if the service is offered, the sign might be hidden or not very obvious. Always ask before you pay.

However, the best savings and return on your purchases will come from shopping at outlets.

The Serravalle Designer Outlet located just an hour from the city center offers 70% savings on retail prices plus provides visitors with tax-free shopping. In partnership with Global Blue tax free shopping solutions, visitors can collect refunds on the sales tax they paid on purchases at Serravalle Designer Outlet.

Cash refunds are issued right there at the end of your shopping day! You just need a stamp to validate it once you get to the airport.

Go home with designer clothing from Italian designer brands and international labels such as Gucci, Prada, Valentino, Celine, Givenchy, Dolce & Gabbana and many more. Shop for jewelry, shoes and accessories from Fendi,  Borsalino, Calvin Klein, Adidas, and Swarovski to name a few.

I’m a student living in Italy can I shop tax free while I am living here?

No, not the entire time you are in Italy. If you are planning to return to your home country, for example for summer or holiday break, any items you buy in the 3 months prior to departure are eligible and you may request a tax refund on those items purchased in that period.

Can UK residents ask for a tax refund?

Yes! As of its EU-exit date, residents of the UK can now also benefit from Tax Free shopping in Italy. The British government has clarified the UK withdrawal from the EU.

I am an EU citizen,l but live in a non-EU country, can I benefit from Tax-Free shopping in Italy?

According to the EU visitors taxation webpage, (ec.europa.eu/taxation) in some countries, you may also qualify as a ‘visitor’ if you are living in an EU country for a defined period of time for a specific purpose, but your permanent home is outside the EU and you are not intending to return to the EU in the immediate future. EU citizens permanently living in non-EU countries are also eligible for the VAT refund.

Example: Paola is an Italian citizen but lives permanently in Canada. Once a year, she returns to Italy to visit her parents. Paola is a ‘visitor’ and can apply for a refund on a basis of her Canadian residence card.

How to Shop Tax Free in Italy

1. Go shopping (and fill out the form)

2. Validate your purchases

3. Get a tax refund

How to Shop Tax Free in Italy: STEP 1 – GO SHOPPING (and fill out the Form)

When you go shopping in Milan or anywhere in Italy, ask the sales assistance if they offer tax free benefits for visitors. Tax free shopping is available for purchases of a minimum of € €70.01 euro.

Usually, the minimum of € €70.01 are per each receipt, but receipts can be accumulated to reach the minimum amount if the purchases were made on the same day and in the same store.

Pro tip: Always ask BEFORE you pay. They cannot apply the tax free service if you have already paid.

Get the Form

At the check-out or boutique cashier, the shop assistant will ask you to provide proof that you are a visitor to the EU. You will need to show your passport or other identity document proving your residence outside the EU.

You will be asked to fill in a form with the necessary details. The shop assistant will fill in the shop’s details on the form.

In some cases, you may be asked to show your ticket as proof that you are leaving the EU within the required time; for Italy this period is within 3 months of purchase date. This is more common at airports and train stations than in city shops and boutiques. Have a copy of your ticket and documents on your mobile, just in case.

Pay

You will be asked to pay the full amount of the goods and taxes. Paying the pre-deducted tax-free price at shops is not possible.

On the receipt, there may also be an administrative fee for tax-free shopping services (which will be later deducted from the refunded amount), many but not all stores apply this fee. Ask before paying what administrative fees may apply.

There are services in Italy for tax-free shopping in Italy; Global Blue, Premier Tax Free, Planet Payment and others. By pre-registering with one of these services, your personal details will automatically be filled out on the Tax Free Form making check-out quicker.

How to Shop Tax Free in Italy: STEP 2- VALIDATE YOUR PURCHASES

At the airport, port or station of departure, go to the Customs desk and present your completed Tax-Free Form, passport, receipts and purchases to get a stamp on your form validating your purchases.

Goods should be kept available for customs officer inspection. Items should be new, unused and with the original receipts. Don’t check-in your luggage before getting the customs stamp, unless otherwise instructed.

Without validation you cannot get a refund.

How to Shop Tax Free in Italy: STEP 3 – GET YOUR REFUND

How to get a tax refund on tax free shopping items in Italy

At the airport, port or station, go to the nearby desk or office displaying a Tax-free refund logo. In some cases this may be a currency exchange office.

Present your stamped, completed Tax-Free Form and your travel passport to receive the refund in cash or to your credit card. There is an additional fee of up to €3 euro per receipt for cash refunds.

If you shop at Serravalle Designer Outlet, there is a refund office on the premises. You get a cash refund, and you will only need the customs stamp – this speeds things up at the airport.

Will I get all the IVA back?

Italy has one of the highest refund rates in the EU for large purchases, at up to 15.5%.

The rebate will be paid as a percentage of the VAT minus service fees. The refund rate in Italy ranges from 11.6% to 15.5% of the purchase amount, with a minimum purchase amount of  €70.01 EUR per receipt.

Purchase Amount	Percentage
Less than 1,700 EUR	11.6% – 13.2%
1,700 EUR – 3,000 EUR	13.2% – 14.1%
3,000 EUR – 5,000 EUR	14%
5,000 EUR – 8,000 EUR	15%
More than 8,000 EUR	15.5%

^{Source Upon IVA calculator}

Pro Travel Tips on Tax Free Shopping in Italy

• Always ask before paying if the store offer tax free purchases. You cannot apply for a refund after payment has been made.
• Pre-register for a tax-free service such as Global Blue or Planet Payment to make check out quicker.
• Keep all receipts, scan or photograph them.
• Get to your point of departure early to have time for the refund procedure.
• Have goods available for inspection, do not check in your luggage until you have gotten your validation stamp.
• If you are getting a credit or bank refund, keep a copy (scan or photo) of your validated form in case you need it for proof of purchase.

Shopping at Serravalle Designer Outlet, Milan Italy – Save up to 70% on designer fashion brands

Serravalle Designer Outlet is just an hour from Milan and is accessible by shuttle bus service.

Getting to Serravalle Outlet from Milan. The best way is to take one of their comfortable shuttle buses, which depart from Central Station. Busses stop for pickups in other locations in Milan; see the timetable and book tickets here.

For small groups, a private luxury van service is available. By car, take the A7 highway and follow the signs for Serravalle Scrivia.

There is a combo train+bus ticket to “Serravalle Outlet” available on the Trenitalia website; however, the shuttle bus or driving is easier and quicker from Milan.

This guide is brought to you by Serravalle Designer Outlet
For more info: mcarthurglen.com

Article by Celia Abernethy, Milanostyle.com
Featured image: Stylish Woman at Milan fashion Fashion Week/ Depositphotos

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