Yes, you can often get VAT (Value Added Tax) back on services, but it depends entirely on whether you are a business or a tourist. Businesses can usually reclaim VAT on services used for operations, while tourists generally cannot get refunds on services like hotels, meals, or transport.
VAT is applied to most goods and services but if you're planning on international travel, there's a good chance you can get a refund on at least some of your VAT payments.
You can reclaim VAT paid on goods or services bought before you registered for VAT if you bought them within: 4 years for goods you still have or goods that were used to make other goods you still have. 6 months for services.
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).
🛠 Step-by-Step Guide to Claim Your VAT Refund in the USA
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. Some countries won't refund after the fact, so check with the Foreign Embassies & Consulates office of the country you visited.
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.
(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.)
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.
What items are eligible for a VAT refund? Typical Recoverable Expenses are:
The Value Added Tax (VAT) or Goods and Services Tax (GST) are broadly based consumption tax assessed on the value added to goods and services. It applies to all goods and services that are bought and sold for use or consumption in foreign tax jurisdiction.
Navigating VAT obligations can be particularly complex for online businesses, especially those selling across borders. Common mistakes—such as failing to register in the correct countries, applying the wrong VAT rates, or missing important filing deadlines—can lead to serious financial and legal consequences.
VAT-Exempt Sales: Your sale is VAT-exempt if it falls under Section 109 of the Tax Code, such as sales of certain residential properties, agricultural food products, educational and medical services. You do not charge VAT and cannot claim input VAT credits.
Tourists in Dubai can reclaim 5% VAT paid on eligible purchases by validating receipts and goods at departure points like airports or borders. To claim VAT refund in UAE tourist should ask for a tax-free tag during purchase, validate goods at departure, and choose cash or card refund.
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.
Healthcare: Medical services, hospital care, and the supply of certain medical products may also be exempt from VAT. Financial services: Many financial services, like insurance and banking, are VAT-exempt. Charitable activities: Donations and activities carried out by registered charities may be exempt from VAT.
As a VAT -registered business, you must charge VAT on the goods and services you sell unless they are exempt. You must register for VAT to start charging VAT .
To get the product VAT free your disability has to qualify. For VAT purposes, you're disabled or have a long-term illness if: you have a physical or mental impairment that affects your ability to carry out everyday activities, for example blindness. you have a condition that's treated as chronic sickness, like diabetes.
What can you reclaim VAT on? You can only reclaim VAT on goods and services that were exclusively used for your business. You can't reclaim VAT on goods and services that are for non-business use or are for client entertaining. You also can't claim for services that are exempt from VAT, such as insurance.
When compared to the standard VAT rates of other countries within Europe, the countries where you pay the lowest VAT rates are Switzerland, Luxembourg and Turkey. For this reason, the VAT rate for your purchases from these countries will be low. This will mean a reduction in the VAT fees you receive back.
Purchases in the checked-in baggage
Common purchases where VAT exemption can apply include, but are not limited to, materials, equipment, services (construction, engineering, base operations support, utilities, communications, administrative, rental vehicles, leases), and fuel.