Tax-free shopping: the minimum threshold has been reduced to 70 euros.

Changes to the VAT on the supply of goods to travellers not resident in the European Union will be effective from February 1st. . With the Budget Law 2024, the minimum purchase threshold necessary to request a refund of VAT is lowered from the historical 300,000 lire (equivalent to about 154.95 euros) to 70 euros.

What is the process for getting a refund
Non-EU citizens can claim a refund for the VAT paid on consumer goods purchased at affiliated stores that display the words ‘Tax Free Shopping’. The retailer gives the customer both the purchase invoice and the tax refund model in this instance.

To date, Italy has the highest minimum amount of expenditure planned in Europe. Many other Member States have already reduced or even eliminated this threshold, using the system as a tool to attract flows outside Europe, particularly targeted at shopping tourism.

What is the new legislation providing for?
With the reduction of the minimum expenditure threshold, the new provision encourages purchases made by non-EU tourists, intended for personal use and to be transported in their luggage outside the customs territory of the European Union. Non-EU travelers cannot be charged VAT by the shopkeeper, but they can ask for a refund of the VAT they paid at customs. The aim of the legislation is to promote the recovery of the national tourist industry and increase the appeal of Italian tourism overseas.

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