Croatia offers one of the highest tax refunds for tourists in Europe, with a 25% VAT rate leading to potential refunds of up to 17.12%. Other top countries for high refunds include Hungary (27% VAT), Denmark, Norway, and Sweden (all 25% VAT). However, the actual refund amount depends on service fees, which often make the final amount lower than the VAT rate.
European Countries with the Highest and Lowest VAT Rates
These are the top ten countries for VAT refunds, along with what to expect when shopping, completing paperwork, and claiming your tax back.
Tax-free shopping is currently available in the following countries: Argentina, Armenia, Australia, Austria, Azerbaijan, Belgium, Bulgaria, China, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Guernsey, Greece, Hungary, Iceland, Indonesia, Ireland, Israel, Italy, Japan, Korea, ...
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.
Italy's 7% tax rule is a special flat tax regime for foreign retirees who move their tax residency to small towns in Southern Italy, allowing them to pay a flat 7% on all their foreign-sourced income (pensions, rentals, dividends, etc.) for up to ten years, instead of standard progressive rates, as an incentive to revitalize southern regions. To qualify, you must not have been an Italian tax resident for the past five years and meet relocation criteria, with benefits including exemption from wealth taxes on foreign assets and simplified reporting.
In Germany the amount paid for merchandise includes 19 % value added tax (VAT). The VAT can be refunded if the merchandise is purchased and exported by a customer whose residence is outside the European Union.
At the time of purchase, the retailer will give you an VAT refund form, which must be signed by both the retailer and you. Obtain a tax-free form from the store, known as Formulaire de Détaxe, and have it stamped by customs before leaving the EU.
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).
States with highest average tax refunds
There is a minimum spend for a tax refund in Hungary. In order to be eligible for a VAT (Value Added Tax) refund, you must have spent a minimum of 17500 HUF, which is approximately €50 euros. You must get a Customs export validation stamp before the end of the 3rd month, after the month of purchase.
Among European OECD countries, the average statutory top personal income tax rate lies at 42.8 percent in 2025. Denmark (55.9 percent), France (55.4 percent), and Austria (55 percent) have the highest top rates. Hungary (15 percent), Estonia (22 percent), and the Czech Republic (23 percent) have the lowest top rates.
Luxembourg has currently the lowest VAT rate with a VAT rate of 17%. Each EU member state decides on the percentage of VAT (Value added tax) tax on the of goods and services. This tax is meant to be applied on the added value that the specific business adds to the service or goods.
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.
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.
For instance, you can expect a higher VAT refund in Hungary because the country currently has the highest VAT rate in Europe with a standard rate of 27%4. Conversely, Luxembourg has the lowest standard VAT rate, which is at 17%5. So, you might see a smaller VAT refund percentage in Luxembourg.
You can get back part of the VAT paid in France as a non-EU tourist. 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.
France: 20% Italy: 22% Spain: 21% Luxembourg: 17% (the lowest in the EU)
To be eligible for a VAT refund in Germany, your purchase need to total at least €50 in a single transaction.
How much VAT is refunded in Italy? Although many products hold a VAT as high as 22%, tourists will not receive a full refund of 22% on a given good. There are administrative fees, and the actual refund amount or percentage may differ case by case.
To qualify for a VAT refund in Portugal, your purchases need to total at least €50 in a single transaction. This threshold ensures that the tax-free process is utilized for substantial purchases.