To get a tax-free refund (VAT) in Europe, shop at stores with "Tax Free" signs, show your passport, and request a VAT form. Purchases must typically be for personal use, exceed a minimum amount, and be exported within 3 months. Validate these forms at airport customs or kiosks before leaving the EU.
Every year, tourists visiting Europe leave behind millions of dollars of refundable sales taxes. Although you aren't entitled to refunds on the tax you spend on hotels and meals, you can get back most of the tax you pay on merchandise.
There are three easy steps shoppers need to take in order to claim a EU VAT refund:
All EU customs offices can process VAT refunds for any purchase made in the EU regardless of the country. It being a different country at worst just means it takes a little longer. It is your responsibility to make sure you have enough time to claim and your route out of the EU takes you past an open customs office.
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.
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.
the United States does not participate in the VAT tax refund, and U.S. Customs and Border Protection officers are not mandated to stamp VAT tax forms.
Main Reasons VAT Refunds Are Rejected (And How to Avoid Them)
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.
To get a 20% VAT refund in France as a non-EU resident, you must spend over €100 (incl. VAT) in one store on the same day, get a tax-free form (détaxe) from the retailer, have it stamped by French Customs (via PABLO kiosks or at the office) before leaving the EU, and present the goods and form at departure to receive your refund (cash or card/transfer) after validation within 3 months.
First, ensure your items are eligible: They must be new and unused or unworn. The idea is that the goods are for "export," not for use on your trip. 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.
Choose how to get your refund
Direct deposit: This is the fastest way to get your refund. Deposit into your checking, savings, or retirement account. You can split your refund into up to 3 accounts. Paper check: We'll mail your check to the address on your return.
Refund Percentage While the standard VAT rate in Italy is 22%, you won't get the entire 22% back as a refund. A percentage of the VAT paid, typically ranging from 11% to 15.5% of the purchase amount, will be refunded after deducting administrative fees and the fees charged by the tax refund company you use.
To request a refund, claimants must send an electronic refund claim to their own national tax authorities, who will confirm the claimant's identity, VAT identification number and the validity of the claim. The request will then be forwarded to the Member State where VAT was incurred.
AT THE CUSTOMS AND VAT REFUND OFFICES Present the Tax Free for which you want to be refunded, the passport, the flight booking or boarding card and goods purchased and follow the procedure described on the next page.
At the time of departure, you must present your passport and purchased items to customs. Please note that if you do not possess the tax-free items at the time of departure, consumption tax will be charged by customs.
These are the top ten countries for VAT refunds, along with what to expect when shopping, completing paperwork, and claiming your tax back.
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.
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.
There are many reasons why the IRS may be holding your refund. You have unfiled or missing tax returns for prior tax years. The check was held or returned due to a problem with the name or address. You elected to apply the refund toward your estimated tax liability for next year.
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)
It's simply the government returning your money that you've been overpaying them—money you could have been using all year long to pay extra on your debt. Your goal should be to have a tax refund as close to zero as possible so you'll have more money in your paycheck. Don't wait until next year to get your money back.
If you're bringing in less than 800 USD of items, you'll probably be exempt. If you bought luxury goods abroad, you must declare them at US customs to avoid confiscation, delays, and high duties.
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.
(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.)