Italian VAT Refund: How to Recover VAT in Italy

Which Italian VAT refund route applies to your business?

Your refund route is determined by where your business is established and whether you are already VAT-registered in Italy. Choosing the wrong route usually means delay, rejection or duplicated VAT reporting. For businesses with no local Italian VAT registration, working with a fiscal representative in Italy can simplify the process.

EU businesses: 8th Directive refund through your home-country portal

EU-established businesses that are not established in Italy normally recover Italian VAT under the 8th Directive, now governed by Directive 2008/9/EC. Italy implements this route through Article 38-bis2 of DPR 633/1972.

The claim is filed electronically through the tax portal of the Member State where the business is established. The home tax authority forwards the application to the Italian Agenzia delle Entrate, which processes the refund.

The filing deadline is 30 September N+1. For VAT incurred in 2025, the application must therefore be filed by 30 September 2026.

A business must also meet the negative conditions of the regime. During the refund period, it must not have had an Italian fixed establishment involved in the transactions and must not have carried out taxable supplies in Italy, except for limited cases such as reverse-charge supplies or exempt transport-related services.

Non-EU businesses: 13th Directive refund with reciprocity

Non-EU businesses use the reciprocal refund route under the 13th Directive and Article 38-ter of DPR 633/1972. This route is not open to every third country by default: Italy requires reciprocity between Italy and the applicant's country.

Where the route is available, the application is filed with modello IVA 79 to the Centro Operativo di Pescara. The deadline to claim Italian VAT is 30 September N+1.

A fiscal representative is not a blanket requirement for every Article 38-ter refund. Representation or local VAT identification may become relevant where the business carries out taxable operations in Italy, but the refund procedure itself must be assessed country by country, with reciprocity and the actual Italian footprint first.

UK businesses after Brexit

UK businesses are treated as non-EU applicants, not as EU applicants. The key point is reciprocity: Agenzia delle Entrate Resolution 22/E/2024 confirmed the Italy-UK reciprocity agreement for VAT refunds under Article 38-ter, with effect for eligible transactions from 1 January 2021.

That means a UK business can claim Italian VAT through the reciprocal non-EU refund route when the other conditions are met.

Minimum amounts and refund periods

Italian VAT refund claims must meet minimum thresholds. The standard minimums are:

• EUR 400 for an interim claim covering at least three months;

• EUR 50 for an annual claim or the remaining part of a calendar year.

The refund period cannot exceed one calendar year and is normally at least three months, unless the claim covers the final remaining period of the year.

Processing times: four months can become six or eight

For EU 8th Directive claims, the Italian tax authority normally notifies its decision within four months after receiving the application. If it asks for additional information, the timeline can extend to six months or eight months depending on the sequence of requests.

For non-EU Article 38-ter claims, the decision or refund timeline is generally six months, extendable to eight months where additional documents or information are requested.

In practice, you should budget for document checks and questions from the tax authority. A late or incomplete answer can block the file and may affect interest on late refunds.

The invoice decides the refund: fattura, not scontrino

A complete fattura is the core document for an Italian VAT refund. A simple scontrino or till receipt is not sufficient, even where it shows VAT.

A usable invoice should normally show:

• the supplier's full details and Italian VAT number;

• your company's legal name, address and VAT or tax identification number;

• the invoice date and invoice number;

• the taxable base, VAT rate and VAT amount;

• a clear description of the goods or services;

• enough information to prove business use and deductibility.

For EU electronic refund claims, invoice data is entered in the portal. Scanned invoices may be requested above the standard thresholds of EUR 1,000 per invoice or EUR 250 for fuel, depending on the portal and the authority's request. For non-EU claims, supporting documents must be prepared with particular care because the file is handled directly by the Italian office.

Deductibility: no universal 100% recovery rule

Italian VAT is refundable only to the extent it would be deductible under Italian VAT rules. The relevant framework includes Articles 19, 19-bis1 and 19-bis2 of DPR 633/1972.

Some costs are often recoverable when they are professional, properly invoiced and linked to taxable business activity. Typical examples include hotel accommodation, business meals, tolls, trade fairs and certain services. Vehicle and fuel VAT requires closer analysis: recovery can be full for exclusively professional or commercial vehicles, but restrictions may apply to passenger cars or mixed-use vehicles.

Do not apply a flat recovery percentage to every invoice. The correct answer depends on the nature of the cost, the business use, the type of vehicle if relevant, and the applicant's own right of deduction in its country of establishment.

Italian VAT-registered businesses: ordinary refund route and Visto di Conformità

If your business is VAT-registered in Italy, VAT is normally recovered through Italian periodic settlements and the Italian VAT return. If the Italian position shows a structural VAT credit, the business may request a local refund under the ordinary Italian rules.

The Visto di Conformità issue belongs here. For significant Italian VAT credit refunds above EUR 30,000, Article 38-bis may require a compliance visa or, in some cases, a guarantee. This is different from saying that every non-resident 8th or 13th Directive claim needs a Visto di Conformità.

Practical checklist before filing

Run this check before submitting an Italian VAT refund claim:

• confirm the correct route: 8th Directive, 13th Directive or ordinary Italian VAT return;

• verify that the applicant has no incompatible Italian establishment or taxable operations for the period claimed;

• check reciprocity for non-EU applicants;

• confirm the deadline: 30 September N+1 for both EU and eligible reciprocal non-EU refund claims;

• make sure the claim reaches EUR 50 annually or EUR 400 for an interim period;

• collect full fatture, not scontrini;

• review deductibility under Italian rules before estimating the refund;

• prepare invoice scans where required, especially above EUR 1,000 or EUR 250 for fuel;

• keep the claim out of Italian VAT returns if it is filed through a non-resident route.

I'm Jim, VAT Specialist at Eurofiscalis. I help French and international companies secure their operations across Europe. For a full picture of Italian VAT, see our VAT in Italy guide and our complete guide on VAT rules in Italy.

See also: import goods into Italy