Originally Posted by Dona March
Can you get good deals on Prada handbags or shoes in Italy?
You can reclaim part of the VAT tax by filing forms and making purchases at specific retailers. Note: the exchange rate at banks will pay $1 Euro for $1.60 US, exchange offices will charge a flat fee and reduced exchange rates. Credit Card companies will charge around 3% service charge on top of exchange rate.
Value Added Tax is extra!!!!!!
In most cases, VAT is 20%.
There are reduced rates of VAT of 4% and 10% on basic products.
VAT is charged on assets and services in Italy as well as on imports into Italy.
VAT returns are made monthly. In certain cases, it is possible to make a return once a quarter.
An annual VAT return must be filed once every year on March 15.
If you want your rebate, you must file VAT doc's at custome prior to departure from Italy.