Yes, it is generally worth getting a VAT tax refund when traveling, as it can save you 10%–25% on purchases of goods like clothing, electronics, and jewelry. It is highly recommended for high-ticket, luxury items or if you make several purchases over the minimum threshold, although the process requires presenting receipts and goods at the airport/border upon departure.
How to get paid a VAT refund. By completing your VAT Return online, HMRC will automatically calculate if you're due a VAT repayment for that accounting period. Once you submit your VAT Return, HMRC usually repays any VAT within 30 days.
When you, as a tourist, buy something and take it out of the country, you're not consuming it locally--so the country allows you to reclaim the tax you paid. In short: You don't live there, and you're not using the product there--so you shouldn't have to pay the tax. Governments offer VAT refunds to: Promote tourism.
Some countries won't refund after the fact, so check with the Foreign Embassies & Consulates office of the country you visited. Also. 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.
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).
You can try to get your VAT refund through the mail but the process takes much longer and can be unreliable. Most people submit their requests at the airport on their way home.
VAT rates vary by EU country, typically set above a minimum of 15%, and can include reduced rates for certain goods and services. Implications for U.S. Consumers and Businesses: American travelers pay VAT included in listed prices in Europe but can reclaim it on certain purchases when leaving the EU.
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.
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.
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.
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.
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.
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)
Actual refund is 10–15% of the total price, due to how VAT is calculated and fees. Spend more than €100.01 to qualify for a VAT refund. Validate your tax-free form at customs before departure. Use our VAT refund calculator to see how much you can claim.
What items are eligible for a VAT refund? Typical Recoverable Expenses are:
Stamped by Customs must show all goods purchased if ≥ 5,000/person on departure date.
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.
Americans do not pay VAT in the United States because the U.S. doesn't have a value added tax. However, Americans pay VAT when traveling in countries with a value added tax.
Examples of VAT exempt goods and services
The goods must be taken out of the EU within 3 months of their purchase. The tourist must provide a stamped VAT refund document proving this. The value of the goods purchased must be above a certain minimum (set by each EU Member State). Retailers can either refund the VAT directly or use an intermediary.
You should contact the retailer or refund agent about claims for refunds of VAT. Revenue does not administer the Retail Export Scheme or give refunds directly to tourists. Retailers or refund agents can direct enquiries to their Revenue office.
Understanding VAT Refunds. A VAT refunds occur when the amount of VAT paid on purchases and expenses exceeds the VAT collected from sales. Businesses can claim a refund from HMRC if they have a VAT credit balance at the end of their reporting period.