If you plan to spend big on a new purse, it’s important that you know what your budget is. Milan Buy skincare now! a Parisian pharmacy, shopping is often a highlight of a trip to Europe—especially with the handy VAT refund. They’ve become just as strategic as they are with sample sales. Sales tax in Europe is staggering at 22%, compared to the US’s average of 7.5%. Wait—don’t get sticker shock just yet! Tax-free shopping is available in all 27 member states of the European Union (EU), but there are some conditions.
The VAT refund program allows you to recoup money at the airport or on the spot. First, there is a mandatory minimum spend in all places except Spain. (Due Brexit, United Kingdom doesn’t qualify—Northern Ireland, however, does.) Second, you must claim your refund Before you begin, please read the following: The EU is leaving. After the basic information is out of the picture, you can learn how to use the VAT refund to earn cashback on your next European shopping spree.
This article was updated after its initial publication date.
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What is VAT?
In Europe, unlike the United States, the Value Added Tax is already included in the price. You won’t have to pay an additional percentage. VAT varies from country to country in the EU—typically falling between 17% and 27%—and international travelers can claim the VAT back on items they’re bringing back home.
Who is eligible to receive a VAT rebate?
Any non-EU resident can claim a refund of VAT on purchases made within Europe. This includes citizens who have a permanent residence outside the EU. When you’re departing, you’ll need to show customs the stamped VAT refund documents, the physical goods in your personal luggage (to show you’re taking the items out of Europe), and prove that you’re a non-EU resident with your passport or residence permit—and it must be within three months of the purchase.
How can I get my VAT refund?
The VAT refund process varies from country-to-country in the EU. However, here is a general overview.
Step 1: Spend the minimum amount
Nearly anything bought for personal use, from clothing and jewelry to cosmetics and skincare, qualifies for a VAT refund—as long as you meet the country’s minimum spend per transaction. Sorry, but vintage items and finds from flea markets do not qualify. Spain is the only nation without a minimum, but it’s not always high. In Germany, Greece, and Portugal, it’s €50; Switzerland’s minimum amount is the highest, at 300 CHF (around $385), but it’s also one of the countries with the lowest VAT—a mere 8.1%.
Step 2: Fill out the form to request a refund of VAT
The paperwork is usually available at department stores and luxury retailers. Ask the salesperson or cashier for it if shopping in smaller boutiques, or even pharmacies. You’ll have to show them your passport Some will only accept the physical ID and not a photo or copy.
Step 3: Fill out the refund form—and keep receipts of your purchase
Often, the retailer will do the heavy lifting by filling out the form and stamping it or signing before attaching your receipt. Before signing, double-check that all the information is correct, including your personal details, date of purchase and item descriptions. Take your shopping bills, receipts and/or refund forms with you when you go. airport—you’ll need to present or scan the forms at customs or a VAT refund counter when leaving the EU.
Step 4: Stamp your tax refund form
If you are leaving the EU or flying home, follow the signs for the customs office. You can also find out more about us on our website. It is usually near the check-in desks in departure terminals. The last step to claiming your refund is the most important—a stamp from customs or electronic validation at a kiosk. While some stores may be able to provide onsite tax refunds, you’ll still have to validate your forms by scanning or stamping them at the airport or train station—proof you’ve taken the items out of the EU. You can still be charged for the credit card even if the store gave you a refund in cash.
Step 5: Claim your refund
After your forms have been stamped or electronically verified, depending on the airport you may need to go to another counter for a VAT refund. You’ll want to have everything ready to show customs agents—forms, boarding pass, passport, the unused goods—so keep the items in your carry-on.
Step 6: Get your refund
Choose between an immediate cash refund (which could come with a higher fee) and a credit card refund, which can take up to a few days. Keep all of your forms together just in case. Tax-free services such as Zapptax let you track your VAT refunds in the app. This can be especially helpful during busy travel seasons like the summer and holidays.
How to claim a refund of VAT in France
If you spend more than €100 at the same store on the same day (now’s the time to snag your dream Chanel bag or shoes!If you spend over EUR100 in the same shop on the same date (now is the perfect time to grab your dream Chanel bag! France. Request a tax-free form (also known as a formulaire de détaxe) that both you and the retailer will sign—and be sure to keep the receipt with it. In department stores like Le Bon Marché Rive GaucheYou can get a tax refund the same day, or within 2 calendar days. (You’ll have to present your passport). Before checking your luggage At the airport, you can either get your form stamped by the customs officer or electronically on a PABLO Kiosk (usually located near the customs department). After your form is approved, you may request a bank deposit or get reimbursed immediately.
How to claim VAT back in Italy
You can shop in ItalyYou can get a tax exempt form from any designer shop, such as Gucci or Prada, to a luxury department store like Rinascente, as long as you’ve made a purchase of more than €70 at the same shop on the same day (since the tax-free system is now digital, you can show a copy of your passport). You can take your passport and receipts to the Agenzia delle Dogane when you leave Italy. Keep the tags on the items in case the customs officers inspect them. Get your forms stamped prior to heading to a counter for a VAT refund.
How to claim a refund of VAT in Spain
Making a purchase is easy. SpainYou can request a tax-free electronic refund document (DER/DIVA), which will be valid at a DIVA kiosk counter or customs when you arrive at the airport. Spain has no minimum threshold for tax refunds, and the stamped forms are valid for 4 years. You can receive an “early refund” in cash (in euros) or on your credit card at any Global Blue or Planet refund point—including airports and even fashion outlets—if you provide a credit card guarantee and leave the country within 15 days.
What if you are not leaving the EU?
It’s no problem. If you have shopped within the EU but are leaving, you cannot claim your refund. Paris But are returning to home MadridYou’ll need to validate your forms in Spain. It’s the same for the items you need to bring: the goods that are unused, the stamped VAT reimbursement form, passport, and boarding card. If you are traveling to the UK via Eurostar from Paris you will need to validate the forms at the PABLO kiosks in the Eurostar terminal, Gare du Nord. Unlike the airport or some shops, you won’t have the option for a cash reimbursement—refunds are automatically credited back to your bank or credit card.
Travellers’ Tips
- Bring your physical passport while shopping (not all retailers accept a copy or photo) and always ask for a VAT refund form—and make sure it’s stamped or signed.
- If you make multiple purchases, you may not receive the full refund.
- You may be required to show your receipts at US Customs.
- Keep the items that you haven’t worn separate from the ones you are wearing and be ready to present them during the VAT refund.
- You’ll need to declare all purchases over $800 to US Customs. Duty-free shopping in Europe does not necessarily mean duty-free products back home.
