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Tax Free

Administers and controls the tax-free products program in support of all U.S. and NATO Forces in Italy. Products managed in this program include gasoline, diesel fuel, heating fuel (gasolio and LPG), lubricants, tobacco, and alcohol.

Location: Building 401, NSA Naples Capodichino Site

Hours: 0800 - 1130, 1200 - 1530, Monday - Friday

Contact Us: Phone: 081-568-5439 - Fax:081-568-5317 (DSN 626-)


As delegated by Government of Italy, American Embassy Rome and by higher U.S. and NATO Military organizations, the NAVSUPPACT Naples Tax-Free Products Administrator, administers and controls the tax-free products program in support of all U.S. and NATO Forces in Italy. This includes International Military Headquarters, their assigned military and civilian personnel and U.S./ NATO personnel on TAD or TDY in Italy in support of military operations. Products managed in this program include: gasoline, diesel fuel, heating fuel (gasolio and LPG), lubricants, tobacco, and alcohol.

The Tax-Free Products Administrator:

  • acts as the single point of contact with the Government of Italy, U.S./NATO Base Commanders and overseas agencies for Tax-Free products.
  • conducts periodic audit inspections jointly with the Italian Ministry of Defense at U.S./NATO Military activities to ensure compliance with established procedures.issues uniform policies implementing International and Diplomatic agreements.
  • negotiates with Italian Government officials various tax-free programs on behalf of U.S./NATO Forces.

Scope of Operations:

The Tax Free Products Officer administers and controls:

  • approximately $70,000,000 of various taxes not collected by the Italian Fiscal Authorities.
  • approximately 80 U.S./NATO commands receive Tax-Free bulk fuel.
  • approximately 16,000 U.S./NATO privately owned vehicles and official vehicles are supported with Tax-Free gasoline/diesel/lubricant coupons.
  • approximately 33,000 U.S./NATO personnel are supported in the tobacco and alcohol Tax-Free Program.
  • approximately 6,000 U.S./NATO families are supported in the tax-free home-heating fuel program (gasolio and LPG)

Frequently Asked Questions

1. Why do they ration gasoline in Italy? Italy does not ration petroleum products and there is no shortage of fuel. What is strictly controlled is the privilege of purchasing tax-free fuel.

2. Why did the Government of Italy and the US establish the Tax-Free Fuel Program? With most US active duty and civilian personnel stationed in Italy not living on base, it was felt that permitting them to purchase a limited amount of tax-free fuel for home to work travel would improve military readiness.

3. Why is my ration card held by my local coupon sales point? The tax structure in Italy is very different than in the United States, remember Italy even has a tax police, the Guardia di Finanze. Every quarter the US Government estimates how much tax-free fuel it will require and asks the Italian Ministries of Finance and Defense to set aside that quantity of fuel. Control of tax-free fuel is so tight that each internal customs district’s allotment of tax-free fuel must be identified, i.e. Naples, Sigonella, Aviano, etc., and your ration card is tied to the customs district where you work and your car is registered. Obviously if you are using your vehicle for home to work travel there is no need to purchase gas coupons some place else.

4. Why can I purchase fuel only from Agip/ENI stations in Italy? Every three years the Defense Energy Support Center awards the tax-free coupon contract to an Italian petroleum company. Agip now has the contract. As a matter of interest, Agip has over 4,329 outlets in Italy.

5. If I have two cars, one gasoline powered and one diesel powered, why can’t my ration be divided between the two products? The Italian Government only recognizes the white plated AFI vehicle, your primary vehicle for home to work travel, as eligible for receiving tax-free fuel. To split the allowance would bring into question the entire purpose of the program "home to work travel to maintain military readiness".

6. Why is the amount of tax-free fuel I can purchase regulated by the definition on the size of my engine? The graduated horsepower tables has proven successful in meeting the fuel needs of the US Forces. It is of continuing importance since this allocation mechanism also reduces the potential for an individual with a small vehicle to blackmarket excess coupons.

7. Why can't I draw my full gas allowance as soon as I file my application for registration? Strictly speaking the Government of Italy does not recognize a vehicle as eligible to receive tax-free fuel until it is officially registered, i.e. AFI plated. A temporary ration arrangement has been created to bridge the gap between applying for registration and receiving the plates. It is a limited ration set at half the maximum ration to ensure the quarterly set aside (see question 3) is not exceeded.

8. Who besides U.S. forces have this or a similar privilege? NATO member troops stationed in Italy and certain Italian military and civilian employees attached to International Headquarters. (The Italian nationals in the program have a much reduced allowance).

9. Where do I go if I have questions about my tax-free fuel privilege? The NSA Tax-Free Products Administrator on the top floor of Building 401 Capodichino or call DSN 626-5439.


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