Can anyone tell me if the 20%VAT that I see priced on things like rental cars and hotels is avoidable? How common is the VAT? Any info. would be great. Thanks.
If you purchase goods that are consumed outside the country you can usually get most of the VAT back. To get the VAT back the store must participate in teh VAT refund policy, you must purchase more than 150 euro at the store in one transaction. There is special paperwork that must be filled out.
You cannot get a refund on things you use while in the country - like rental car, hotel, restaurant meals. You may be asked to show the items you purchased - so make sure you don't wear/use them yet. If the tags are off it's a giveway that you've already used them and you could be denied!
Thank you for the reply on the VAT in Italy. I understand that I can only apply for a VAT refund if I am taking the items(over150 Eu.) purchased outside the country. Does anyone know if the VAT is negotiable for large ticket items like rent-a-car? Also, does anyone know what regions of Italy use the VAT? Thanks!
The VAT is not negotiable and it's applied all through-out a country. It's not something imposed by the business, it's imposed by the government. It would be the same as trying to avoid paying sales tax in the US. It just won't happen. If there is something you want to purchase, you pay it. That's all there is to it.
Thanks for the information folks! I guess I'm just gonna have to suck it up and pay the 20%! It just sounded like a lot to me. I'm a bargain hunter so I'll make do.