The currency of Italy is the Euro (€). US dollars are not accepted.
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While there are no standard rules like in America, if you've received exceptional service, a 5-10% tip max is appreciated. Otherwise, a few euro left on the table when you leave is also fine for good service.
What is the rule for tipping in Italy? There is no strict rule about tipping in Italy. Leaving a tip is a courteous gesture that shows the person who provided a service to you, that you appreciated their help. As such, leaving a tip is entirely up to you and, in many cases, it will not be expected, albeit appreciated.
If you can, it's always best to leave your tip in the local currency, not on a credit card or in U.S. dollars. There are several countries in Central and South America where the tip is included in the price of the bill, or culturally it is uncommon, so there's no need to tip.
You don't need to tip French waitstaff because they get a living wage and benefits. Unless a restaurant is hiring workers illegally, its waitstaff is being paid a living wage and has benefits, as well. So tips aren't a crucial part of a server's income in France.
It is important to remember that everything is a give and take. Spoiler: Tipping is close to non-existent in Italy. A few euros here and there. That said, don't expect your waiter to stop by and ask you how things are going every 45 seconds and to refill your water every time you take a sip.
At bars in Europe, tips are not customary, but leaving change or a few euros is always appreciated, if not expected. For takeaway food or drinks, counter dining, or stand-up service, tips are also not customary.
U.S. dollars are not accepted. Please be sure to have the correct currency on hand or be prepared to exchange your dollars for pounds upon arrival. In Scotland some banks print their own notes, which can be used in Scotland; it is a better idea to use pounds throughout the UK, you can not go wrong.
But in some countries, tipping isn't expected at all and might even be considered rude. In many parts of Asia, tipping is not part of the culture. Adding something to the bill will cause confusion and imply the worker is not paid a fair wage, which is considered an insult.
The short answer is yes. Drinking water from the tap in Italy is considered safe. Tap water in the major cities and towns around Italy is safe for consumption, and there are thousands of old-style water fountains dotted around cities, like Rome, where you can fill up water bottles.
Tipping is not considered etiquette by French people in French restaurants, but if you enjoyed your meal, it's nice to leave 5 - 10%. If you really enjoyed the meal, or plan on returning to the restaurant and want the wait staff to like you, 15% is a generous tip.
TAXIS. Again, a tip is not expected by taxi drivers in Italy. If you really enjoyed the ride, you can round up your fare. If the trip was particularly long, you can round up to the nearest ten Euro.