The United States does not have a national Value Added Tax (VAT), but purchases from the USA are subject to VAT when imported into countries that have one, such as those in the EU or the UK. VAT is applied at the destination country's rate on the imported goods' value.
If you're importing goods from the USA, there's no requirement for VAT-registered businesses to account for VAT. If you're importing something from the US, the US sales tax will not be added, but rather, the UK tax rate (usually 20%) will be paid upon import.
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.
The United States does not have a Value Added Tax (VAT) at either the federal or the state level. Sales and use taxation in the US is operated independently by each of the 50 states and the District of Columbia. Sales taxes are administered by every state except Alaska, Delaware, Montana, New Hampshire, and Oregon.
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.
At the Merchant
Note that you're not supposed to use your purchased goods before you leave Europe. (Some retailers, particularly those in Scandinavia, will staple and seal the shopping bag to keep you from cheating.) If the store ships your purchase to your home, you won't be charged the value-added tax.
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.
(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.)
VAT (Value Added Tax) and GST (Goods and Services Tax) are fundamentally the same type of consumption tax, levied on goods and services at each stage of the supply chain, but the terms are used in different countries and can have structural differences, with GST often being a unified, simpler system replacing multiple taxes (like VAT, sales tax, excise duty) into one, as seen in India and Canada. Both ensure the final consumer pays the tax, while businesses get credits for tax paid on inputs, but specific implementation, rates, and administration vary by country (e.g., EU uses VAT, India uses GST).
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.
Shipping your purchases home directly from the retailer is another way to avoid paying VAT, but the added cost may outweigh any savings. 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.
The Tourist Refund Scheme (TRS) allows Australians and overseas visitors to claim a refund (subject to certain conditions) of the goods and services tax (GST) and Wine Equalisation Tax (WET) paid on goods bought in Australian and then taken out of Australia.
Here are 7 of the best ways to do just that—and start taking control of your importing expenses.
Examples of VAT exempt goods and services
For imports, VAT is based on the customs value of your goods. The United States does not currently charge a VAT tax on imports, but you will likely have to pay this tax if you import goods into the European Union.
The U.S. does not operate a VAT system. Instead, it applies sales tax at the final point of sale, which is collected by the seller and remitted to the appropriate state or local authority.
claim in person by showing your passport, boarding pass, goods and original invoices to the TRS Facility on the day of departure:
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.
Right off the gate, if you're wondering whether you can claim the VAT portion on international expenses, the answer is a resounding yes! However, to successfully claim foreign VAT, there are a few critical things to keep in mind. First off, look at what foreign VAT reclaim is precisely.
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.
Does the U.S. Impose a VAT? The only major economy without VAT is the United States. This is because each state in the U.S. has its own sales tax regime, with some cities or counties additionally levying a sales tax, rather than a federal sales tax.
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.