1. How long does it take to receive a VAT refund in Italy?

Processing times for Italy VAT refund can vary. Businesses reclaiming a VAT refund in Italy can expect it to take anywhere from a few months to a year, depending on the claim complexity and submission accuracy.

2. What is the standard deadline for submitting a VAT refund application in Italy?

An Italy VAT refund application should be submitted before 30 September of the year following the year in which the VAT in Italy was incurred, for a VAT refund in Italy under both the 8th Directive and 13th Directive. VAT refunds in Italy can be made quarterly and annually, however the claiming periods for Italy VAT refunds are not allowed to overlap with one another.

3. Can businesses still reclaim VAT in Italy if the VAT has been charged incorrectly?

If VAT in Italy has been charged incorrectly on an invoice, the entity would generally not be entitled to include the invoice in an Italy VAT refund. The entity would need to contact the supplier that charged the incorrect VAT in Italy and request a refund of the VAT in Italy that was incorrectly charged. This is something that VAT IT will be able to assist with. We can contact the supplier on your behalf and request a refund of the incorrectly charged VAT in Italy.

4. Is there a claim minimum applicable for VAT refunds in Italy?

Quarterly Italy VAT refunds under both the 8th Directive and 13th Directive should exceed EUR 400.00. Annual Italy VAT refunds under both the 8th Directive and 13th Directive should exceed EUR 50.00.

5. How can a business apply for a VAT refund in Italy?

An Italy VAT refund claim under the 8th Directive should be submitted electronically through the portal managed by the claimant’s Member State of Establishment. An Italy VAT refund claim under the 13th Directive should be submitted physically by sending the hard copy documents to the Italy VAT Authority. VAT IT will be able to assist with submitting your VAT refunds in Italy.

6. On which goods or services are the reduced VAT rates applied in Italy?

VAT in Italy is charged at various rates. In addition to the standard rate of VAT in Italy of 22%, there are also reduced VAT rates of 4%, 5% and 10% which are applied to certain foodstuff, water, pharmaceutical and medical products and passenger transport, amongst others. Expenses that are typically eligible for a VAT refund in Italy will be charged at the standard VAT rate, except for Accommodation which is charged at 10% and Food, drink and restaurant services which are also subject to VAT in Italy at 10%.