Money & Exspenses

The unit of currency in Italy is the lira. There are bills of 500,000 100,000 50,000 10,000 5,000 2,000 and 1,000 lire. Coins are 1,000 500 200 100 and 50 lire.
At press time, the exchange rate was about 1,700 lire to the U.S. dollar.
Italy's prices are in line with those in the rest of Europe, with costs in Rome comparable to those in other major capitals, such as Paris and London. Depending on season and occupancy, you may be able to obtain unadvertised lower rates in hotels; always inquire. If you want the luxury of four- and five-star hotels, be prepared to pay top rates, though.
When you make hotel reservations, ask explicitly whether breakfast is included in the rate. By law, breakfast is optional, but some hotels pressure guests to eat breakfast on the premises--and then charge a whopping amount for it. Find out what breakfast will cost at the time you book, or at least when you check in, and if it seems high, avoid misunderstanding by clearly stating that you want a room without breakfast.


ATMs

Cash Advances: Cirrus, Plus, and many other networks that connect automated teller machines operate internationally. Chances are that you can use your bank card, MasterCard, or Visa at ATMs to withdraw money from an account or get a cash advance.


Exchanging Currency:

For the most favorable rates, change money at banks (unless the lines are too long; it may not be worth wasting precious time to gain a few hundred lire). You wont't do as well at xechange booths in airports or rail and bus stations, in hotels, in restaurants, oe in stores. Exchange agencies in Rome may be competitive with the banks.


Costs

Admission to the Vatican Museums is 15,000 lire. The cheapest seat at Rome's Opera House runs 25,000 lire; a movie ticket is 12,000 lire. A daily English-language newspaper is 2,400 lire.
A taxi ride (1 mile) costs 10,000 lire. An inexpensive hotel room for two, including breakfast, is about 170,000 lire; an inexpensive dinner is 38,000 lire, and a 1/2 liter carafe of house wine, 4,000 lire. A simple pasta item on the menu runs about 12,000 lire, a cup of coffee 1,200-1,400 lire, and a Rosticceria lunch, about 14,000 lire. A McDonald's Big Mac is 4,800 lire, a Coke (standing) at a café is 2,200 lire, and a pint of beer in a pub is 7,000 lire.


Taxes

Hotel

The service charge and the 9% IVA, or VAT tax, are included in the rate except in five-star deluxe hotels, where the IVA (13% on luxury hotels) may be a separate item added to the bill at departure.

Restaurant

A service charge of approximately 15% is added to all restaurant bills; in some cases the menu may state that the service charge is already included in the menu prices.


VAT

Value-added tax (IVA) is 12% on clothing, 20% on luxuries. On most consumer goods, it is already included in the amount shown on the price tag, whereas on services, it may not be.
To get an IVA refund, when you are leaving Italy take the goods and the invoice to the customs office at the airport or other point of departure and have the invoice stamped. (If you return to the United States or Canada directly from Italy, go through the procedure at Italian customs; if your return is, say, via Britain, take the Italian goods and invoice to British customs.) Under Italy's IVA-refund system, a non-EU resident can obtain a refund of tax paid after spending a total of 300,000 lire in one store (before tax--and note that price tags and prices quoted, unless otherwise stated, include IVA). Shop with your passport and ask the store for an invoice itemizing the article(s), price(s), and the amount of tax. Once back home--and within 90 days of the date of purchase--mail the stamped invoice to the store, which will forward the IVA rebate to you. A growing number of stores are members of the Tax-Free Shopping System, which expedites things by providing an invoice that is actually a Tax-Free Cheque in the amount of the refund. Once stamped, it can be cashed at the Tax-Free Cash refund window at major airports and border crossings.

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