Cashback, also known as “State cashback,” has become a reality in Italy as well. Many are wondering, “What is cashback, how does it work?” Here’s what you need to know.
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From the days before Christmas 2020, cashback has also become a reality in Italy.cashback.This is a government initiative to encourage the use of electronic currency for purchases in order to combat tax evasion.
It starts with the Christmas cashback and will then continue with a semi-annual cashback.
What is cashback
Cashback is a sort of benefit for consumers who use electronic currency (credit cards, debit cards, apps, etc.) which translates into a refund of part of the money spent (10%) provided certain conditions are met. The maximum allowed refund is 150 euros. Experimentally, cashback began in the Christmas period of 2020 and will be permanently introduced in the short term. Specifically: the cashback is a sort of benefit for consumers who use electronic currency (credit cards, debit cards, apps, etc.) which translates into a refund of part of the money spent (10%) provided certain conditions are met. The maximum allowed refund is 150 euros. Experimentally, cashback began in the Christmas period of 2020 and will be permanently introduced in the short term. Specifically: the Christmas cashback will be active from December 8th to 31st. The semi-annual cashback, on the other hand, will begin on January 1, 2021. The semesters defined so far are:
- from January 1 to June 30, 2021
- from July 1 to December 31, 2021
- from January 1 to June 30, 2022.
How cashback works
To take advantage of cashback, you must have the SPID or the Electronic Identity Card (CIE). You also need to use the IO APP.
SPID: where to get it and how much it costs
SPID must be requested on the website of the Agency for Digital Italy. It is a tool that allows access to online services of the Public Administration and participating private entities with a single Digital Identity (username and password) usable from computers, tablets, and smartphones. Requesting SPID is free.
Electronic Identity Card
The Electronic Identity Card is issued by the municipality of residence. Not all Italian municipalities are able to provide the electronic card, but it is becoming increasingly widespread.
Where to download the IO App
TheAPP IO is free and available for download in the App Store (Apple) and Play Store (Android). You need to indicate the IBAN of your current account in the IO App where reimbursements should be sent.
Cashback: spending reimbursement
The cashback system is very simple: you are entitled to a 10% reimbursement for payments made using cards and apps. The maximum annual reimbursement limit is 300 euros, obtained on a basis of 150 euros per semester. However, electronic payments must be at least 50 euros for each period (semester). In the case of Christmas cashback, given the short timeframe (December 8th to 31st), the minimum purchase amount is 10 euros. The mechanism provides that reimbursements do not exceed 15 euros per transaction. Therefore, even for purchases exceeding 150 euros, the reimbursement will never exceed 15 euros. The 100,000 most virtuous buyers and users will also benefit from a bonus of 1500 euros per semester.
Cashback: online purchases
Reimbursement is not provided for purchases made via e-commerce. The government, as can be inferred, is interested in regulating electronic payments with purchases made in traditional stores. The purpose, as we have said, is to combat tax evasion, which in online purchases, it is clear, especially with electronic payment, is almost entirely eliminated as everything is tracked.
Cashback: where to buy
Except for online purchases, therefore, cashback reimbursement is possible if you shop at local stores, supermarkets, as well as bars, restaurants, plumbers, professionals, etc.
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