How to Get a VAT Refund for Shopping Abroad
A VAT (value added tax) is similar to an American sales tax, but it is applied in most European countries to shopping purchases and automatically added into the price. Tourists and any other non-residents are often allowed to receive a 15 to 25 percent refund by holding onto their receipts. This sort of refund could save you a substantial amount of money if you are shopping abroad.
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Things You'll Need
- Receipts from all purchases made in applicable European countries
- Purchases to show to customs
Instructions
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Get a VAT Refund for Shopping Abroad
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Shop smart by keeping track of all your receipts. You will need them to determine how much of a refund you deserve, which will depend on the country you visit. Every country has different policies for VAT refunds and some are only for purchases that are a minimum of $25.
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Ask for a special VAT refund receipt or get an application for a VAT refund upon purchase. Some stores will offer an export certificate to be stamped by customs that gives the specific amount due back as a cash refund.
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Keep all items purchased abroad in a separate, easy-to-access piece of luggage. At customs, all purchases and receipts must be shown and cleared. Tourists are not eligible for VAT refunds for meals, entertainment and lodging.
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Wait until you return home from traveling abroad to get your VAT refund. Another option is to save all stamped receipts and then mail them in to an organization that provides such refunds.
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Let your employer apply for your VAT refund, if you are a business traveler. Typically, your employer will handle all refunds upon the submittal of valid receipts from business-related expenses incurred abroad.
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Visit organizations online that provide VAT refunds or help travelers abroad receive them, such as the Global Refund Group. To process your VAT refund electronically, look for stores that will certify the Global Refund receipt before pursuing the refund online (see Resources below).
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Tips & Warnings
If you're traveling for business, travel costs and services in addition to other shopping purchases can be eligible for a VAT refund. This is not the case for regular tourists traveling abroad.
Be sure to clarify before shopping whether or not the country you are in is part of the European Union and gives VAT refunds.
Also look for some stores that participate in Europe's tax-free shopping program to avoid the refund process.
