Yes, you can claim VAT back on clothing under specific circumstances, mainly if you are a non-EU/non-UK resident visiting and exporting the goods, or if the clothing is specialized workwear/uniforms for a business. The items must be new, unused, and you must meet minimum spend requirements, usually requiring a tax-free form.
VAT can only be reclaimed if: ✔ You are self-employed or a business owner purchasing workwear for employees. ✔ The clothing qualifies as essential workwear (e.g., safety gear or uniforms).
And there is typically a minimum amount you have to spend in a store to qualify — as of November 2023, the minimum in the EU is 175 Euros. So it's usually high-ticket items, like jewelry or fine clothing, that qualify for a VAT refund, not a paperback novel or suntan lotion.
The United States Government does not refund sales tax to foreign visitors. The foreign country in which you paid the Value Added Tax (VAT) is responsible for refunding the tax.
What items are eligible for a VAT refund? Typical Recoverable Expenses are:
You cannot reclaim VAT for: anything that's only for personal use. goods and services your business uses to make VAT -exempt supplies. the cost of entertaining or providing hospitality to people you do business with (for example theatre or sports tickets)
Receipts, tax-free tags, passport, credit card, and goods must be shown at validation kiosks or counters. 85% of VAT is refunded after deducting fees; paid via cash (limit AED 35,000) or card. Goods must be unused and carried with the traveller services, food, or used items don't qualify.
VAT refunds let tourists get back Value Added Tax paid on goods they buy in countries like the EU, requiring forms from stores, proof of export (customs stamp at the airport before checking bags), and claiming the refund at airport desks, usually for unused items taken home, though the US doesn't offer this. The process involves getting an exemption form, keeping goods unused with tags on, getting customs to validate forms (often pre-security), and then processing the refund with operators like Global Blue, allowing for cash or credit card returns minus fees.
For any significant purchase, even at a boutique shop, it's always worth asking about a VAT refund. The precise details of getting your money back will depend on how a particular shop organizes its refund process. In most cases, you'll present your refund documents at the airport on the way home (explained later).
No refund is possible without a (digital) customs stamp. If you are leaving the EU via Vienna International Airport you will be issued with a digital customs stamp. After deduction of a handling fee by the tax-free provider, the refund amounts to up to 15% of the purchase price.
Whether you are selling clothes or buying clothes, you should assume that if the clothes are for adults, VAT is chargeable at the standard rate of 20%.
You can't claim a deduction for clothing you wear to work, unless that clothing is in a specific category. You can't claim the cost of buying, hiring, repairing or cleaning conventional clothing you buy to wear for work, even if your employer says this is compulsory, or you only wear it when you are at work.
Any Retail Store is not under any obligation .. They can offer a Exchange or Credit note at their discretion.. The ONLY time that a Refund HAS to be issued.. is :- If a product is faulty and cannot be replaced due to the item no longer being manufactured and therefore a replacement is not possible..
Unreimbursed Employee Expenses
For some workers, especially sole proprietors, self-employed individuals, and contractors, certain work-related clothing expenses can be tax-deductible. To qualify, the clothing must be specifically required by the employer and not suitable for everyday wear.
Standard-rated supplies charge 20% VAT, and you can reclaim VAT on purchases. Think electronics, restaurant meals, or household items. Reduced-rated supplies are taxed at 5%. Examples include home energy, children's car seats, and some building work.
Procedure upon departure from the European Union
When you leave the EU territory and prior to checking your luggage, you must present both your purchases and the VAT refund form to Customs.
Who Can Claim a VAT Refund? In the USA, the opportunity to claim a VAT refund is generally reserved for foreign businesses and tourists who have incurred VAT on eligible expenses within VAT-imposing countries. US businesses may also seek VAT refunds from their business expenses in these countries.
Goods and services used for VAT-exempt products and services
If you buy materials or services that your business then uses to create new products and services that are exempt from VAT, such as insurance services or online lottery games, then you cannot claim back VAT on those materials or services.
(You are considered an exporting tourist when you purchase goods and take them with you home, therefore becoming eligible for a refund of the VAT that you paid during the purchase.)
How much VAT is refunded in France? Although the standard VAT rate is 20%, tourists cannot get a full refund of 20% on their purchases. Only some of the VAT can be claimed back, around 12%.
There is no VAT refund in the UK, so don't buy in London or Scotland. France and the Netherlands have the same prices as they are EU countries. LV in France will give you 12% of the VAT back through Global Blue.
When it comes to claiming VAT on travel expenses, the key is knowing what's eligible and what's not. While you can reclaim VAT on things like hotel stays, car hire, and fuel for company vehicles, other costs—such as flights and train tickets—are zero-rated, meaning there's no VAT to reclaim.
Purchases eligible : goods only (clothes, cosmetics, electronics, etc.). Services (restaurants, hotels, taxis) are not refundable, and goods must be new/unused. Deadline : you must carry the goods with you outside the EU no later than the end of the 3rd month after purchase.
For a tax-refund passengers can then go to the desks of the companies authorised to carry out tax-refunds in the airport terminal, or they can choose to post the sales documentation using the pre-stamped envelope and place it in the post boxes situated beside the customs office in the extra-Schengen area after passport ...
Main Reasons VAT Refunds Are Rejected (And How to Avoid Them)