claim VAT back on taxis in Italy

Taxi in Italy falls under transport costs

VAT paid in Italy for a taxi ride during a business trip can in principle be included in a refund request. Transport is one of the ten cost categories that fall under the EU refund scheme, along with for example fuel, tolls, hotel accommodation, meals and trade fair participation. A taxi ride that is demonstrably made for business purposes — to a client, a trade fair or between airport and hotel — fits into that category.

Whether the Italian tax authority actually grants the VAT on a taxi receipt is a different question than whether the cost category is theoretically eligible. Each EU country is namely entitled to set its own limits on what it accepts or excludes per cost category, and those limits differ from country to country. For Italy specifically, this is set out in the Requirements list that the Tax Authority maintains per refund country; that list is the place where any special conditions for transport costs in Italy can be found, separate from the general classification into cost categories.

Source: Directive 2008/9 and the Requirements list

The general classification into cost categories and the right to claim back foreign VAT via the Tax Authority's portal follows from Council Directive 2008/9/EC