For Americans, Italy is a tax-free shopping paradise

According to a report co-signed by Global Blue, a leading Tax Free Shopping company, and Lybra Tech, it emerges that Americans vacationing in Italy are the country's top tax-free shoppers, given also the significant flow of tourists visiting the country and a significant impact on overall spending. The opportunity to buy without being charged VAT is an advantage for non-EU travelers, making Italy an increasingly attractive destination for international shoppers and mass tourism. As usual, the most luxurious and renowned seaside resorts capture most of the international tourist flows, sometimes creating culture clashes that show up on social media but mostly turning into international luxury shopping hubs where mainly Americans and Arabs arrive each season spending increasingly astronomical amounts of money.

Tax-free purchases: how they work

The system of tax-free purchases allows tourists from non-EU countries to obtain a refund of VAT paid on purchases made on Italian territory. The procedure is relatively simple: when the tourist makes a purchase in a store participating in the tax free scheme, he or she must request a special form at the time of payment. This form, called the Tax Free Form, certifies the amount of the expense and the VAT paid. Upon departure from Italy, the tourist must present himself at the airport or border crossing customs, show the goods purchased, his passport and the completed Tax Free Form. After a verification of the information, the form will be validated and the tourist can apply for a refund of the VAT paid at authorized counters or by bank transfer.

The largest tax-free expenditures in Italy

Among the top five tourist destinations in Italy, Capri shows a remarkable recovery in tax-free purchases, with a 197 percent recovery rate from 2019 and a 165 percent recovery rate for transactions. Americans are confirmed as the main buyers, accounting for 54 percent of purchases and stay searches. Arabs, on the other hand, almost double their spending (11 percent) with an average receipt of 2,036 euros (+9 percent), while tourists from Southeast Asia show a 10 percent growth, with an average spend of 2,685 euros. In second place, Portofino records a tax-free spending recovery rate of 118% and a 134% increase in transactions. Again, Americans lead in purchases with 42%, followed by Arabs accounting for 16% while tourists from Northeast Asia stand out with a high average spending of 3,383 euros. Eighty percent of purchases are concentrated on clothing, fashion and accessories, both luxury and non-luxury. Finally, Porto Cervo saw a 156 percent recovery rate for tax-free spending and 166 percent for transactions. Again, Americans virtually doubled their presence here, followed by Arabs who tripled their weight and now make up 18% of tax free purchases. Average spending in Porto Cervo is the highest in all of Italy, with an average receipt of 2,095 euros. Here, too, a large proportion of purchases involve fashion and everything around it.

At the bottom of the ranking we have Forte dei Marmi, which ranks fourth with a recovery rate of 89 percent for tax-free spending and 91 percent more transactions than in 2019. While Taormina comes out as the destination with the best recovery rate for tax-free spending, reaching 313% over 2019, with a 149% increase in transactions. This time it is the British and not the Arabs who are the main buyers in this location-after, of course, American tourists. Average spending in Taormina, on the other hand, rose to 1,628 euros.