traveller vat refund

How to get your maximum VAT refund when traveling abroad

While a European vacation is undoubtedly an unforgettable experience, it can be expensive.

That's why savvy travelers have various strategies in place to save money on flights, hotels and rental cars (hopefully by reading some of TPG's great money-saving advice ).

One of the most overlooked ways travelers miss out on saving money is by forgetting to apply for a VAT refund.

VAT is a Value Added Tax . Let's say, for example, you just went on a shopping spree in Rome or splurged on gifts at the El Corte Ingles department store near Las Ramblas in Barcelona. You more than likely paid VAT on your purchases, but the good news is that visitors to the European Union can often get a refund on that tax. Think of it as the traveler's tax break.

Despite the obvious savings that can come with VAT refunds, the amount of money Americans leave on the table each year in unclaimed refunds is estimated to be in the billions. Don't be one of those travelers.

Getting your VAT refund is worth the time and effort it takes, especially if you're traveling within the EU .

The rules surrounding VAT refunds have somewhat changed in recent years, so it's important to read up on the latest rules (including the U.K.'s discontinuation of VAT refunds for international visitors since Brexit). Here's everything you need to know about getting your maximum VAT refund when traveling in Europe.

What is a VAT?

VATs and goods and services taxes (GSTs) are common worldwide; more than 160 countries have them.

In the EU, the VAT is similar to the sales taxes imposed in the U.S., but there are also some big differences. One of the biggest: VAT rates are much higher than those you pay in state and local sales taxes in the U.S.

The EU's minimum standard VAT rate is 15% — far more than the combined state and local sales tax rates you'll find anywhere in the U.S. However, the average standard VAT rate in the EU currently sits around 21%. All EU countries have standard VAT rates above the 15% threshold; Luxembourg has the lowest rate at 16%, and Hungary has the highest at 27%.

"The VAT is a major income revenue for the tax authorities in Europe," said Britta Eriksson, a VAT expert and CEO of Euro VAT Refund , a Los Angeles-based company that helps companies manage VAT in their overseas operations. "[VAT] represents almost as much as the income tax in terms of revenue for the government."

Many EU countries offer lower VAT rates on certain goods. Sweden, for example, has a standard VAT rate of 25%. However, for some food items, restaurant services and even hotels, a reduced VAT of 12% is offered.

France has reduced the VAT on certain agricultural products and even some cultural events to 5.5%. In other nations, items such as books, newspapers, and bike and shoe repairs receive a reduced VAT rate of only 6%.

As you can see, these "special rates" vary from country to country, so make sure you do your homework before your trip. The EU also exempts some goods and services from VAT; some exemptions include educational services, financial services and medical care.

What are the refund rules?

Prices in the EU always have the VAT included. If you're visiting an EU country, you'll generally have to pay the price of an item, VAT and all, and get your refund after the fact.

There are several requirements to follow to claim your refund. For instance, you must take your new item or items home within three months of the purchase. VAT refunds are not available for large items like cars. EU visitors also cannot get a VAT refund for services like hotel stays and meals.

Some countries require that your purchase exceeds a certain amount to be eligible for a VAT refund. Like the VAT rates, this minimum purchase amount varies from country to country.

For example, in France, the minimum amount is now 100.01 euros (about $107) for the total amount of purchases you buy on the same day in the same shop. In Belgium, the minimum is 50 euros (about $54); in Spain, there is no minimum purchase amount to claim a VAT refund.

One important thing to note is that you can only claim a VAT refund on new items. Your merchandise must be new and still in its packaging when you leave Europe. The goods can't be unpacked, consumed or worn. If you want to claim your refund, you should pack away whatever you purchase and wait until you get home to open it.

Getting your refund

Thousands of European stores do what they can to accommodate tourists seeking refunds and will usually have signs in the window reading "tax-free" or "VAT-free" shop.

As you pay for your item, inform the clerk that you're an EU visitor and intend to get a VAT refund. The store will have some paperwork for you to fill out. Have your passport ready to prove your visitor status. You may also need to show your airline ticket as proof you're leaving Europe in the allotted time in order to claim a VAT refund.

Some stores will refund your VAT, but in most cases, you'll likely have to take your refund forms and get your refund processed elsewhere.

Many stores work with third-party agencies, such as Global Blue or Planet , to process VAT refunds, and these agencies usually have facilities in major cities where you can take your completed forms and get your refund.

When purchasing your items, check to see if your merchant is partnered with these agencies.

On departure day, be sure to take your receipts, the refund forms the shops filled out, the items you bought and all your other travel documents with you to the airport so that you can present everything to customs.

If you're touring multiple EU countries during your trip, you'll complete this process at the last EU country you visit. That means if you visit France and Italy before ending your trip in Spain, you will apply for the VAT refund on your purchases in Spain.

Customs may inspect your purchases, so make sure they're available and not in your checked baggage. Also, make sure the goods are unused and unworn.

If all goes well, the customs office will stamp your refund forms. If either the store or one of the third-party refund agencies has already given you your refund, you'll have to mail this stamped form back to them to prove you left Europe within the mandated three-month period. Otherwise, you risk having your refund canceled and your credit card charged for the VAT you owe.

If you haven't done so already, you can also get your refund at the airport. The big refund agencies have facilities at all the major EU airports, sometimes at a currency exchange. Just show them your stamped customs forms and your passport to get your refund, minus a fee.

No VAT refund in the UK

Before we share some advice on getting your VAT refunds, we want to remind everyone that the U.K. no longer has VAT-free shopping for international tourists. In fact, Great Britain is now the only European country that doesn't offer the savings opportunity for international visitors.

The VAT retail export scheme was eliminated when the U.K. exited the EU in 2021. It resumed briefly before being axed, supposedly for good, in 2022.

Although there's some optimism that VAT refunds could return to Britain in the future — the U.K.'s tourism industry is lobbying for its return — it's not an option for now.

While VAT refunds are no longer available in England, Scotland and Wales, you can still claim refunds if you're visiting Northern Ireland. There are also several exceptions and rules to know; for example, it doesn't apply to services like hotel bills. You can find the list of restrictions here . You should also be aware that some merchants and refund companies in Northern Ireland charge a fee for using tax-free shopping. Still, if you're planning a visit, you could save some money on your shopping.

Tips for maximizing your savings with a VAT refund

Here are some do's and don'ts for getting your VAT refunds.

Research the country

Before your trip, look up the VAT rules for the country you're visiting and check the standard and reduced VAT rates, as well as the minimum purchase points.

As we mentioned earlier, the rates and rules of what qualifies for a VAT refund can vary depending on where you visit, so make sure you're aware before you get there.

Remember that many countries outside the EU also charge a VAT, and their refund policies can differ greatly from what you'll find in Europe.

Research the store

Stores aren't required to provide VAT refund assistance of any kind.

"If you have a store that doesn't have this program, then getting a refund is very complicated," Eriksson warned.

Keep an eye out for stores displaying "tax-free" or "VAT-free" signs. Ask the store employees which third-party agencies they partner with for refunds. Also, ask how they process refunds and what fees they charge. As we noted above, some retailers in some countries may charge a fee to visitors using tax-free shopping.

Allow extra airport time for your refunds

Don't expect to be the only traveler at the airport seeking a VAT refund before heading home. Expect to wait in line for a bit. Plan ahead and give yourself extra time at the airport, as the line can be long.

If you're strapped for time after leaving customs, some agencies will let you drop your stamped forms in one of their mailboxes, and they'll issue your refund later.

Consider shipping your purchases home to avoid VAT entirely

If you don't want to deal with any of this stuff, Eriksson suggests another option.

"You can also have the store ship [your items] to you directly," she said. "Then, they won't charge you VAT."

But there's a catch.

"You still have to pay for the freight," Erikkson added.

Shipping costs from Europe to anywhere in the U.S. can get wildly expensive. So, you have to weigh that shipping cost against the VAT and the time and effort it would take to get your refund to decide if it's worth it.

Make sure the refund is worth the trouble

"If you buy expensive clothing and china, then it's absolutely worth it," Eriksson said.

While many VAT countries have purchase minimums for refunds, in others, any purchase a visitor makes qualifies, no matter how small. So, you should ask yourself if it's worth applying for a VAT refund for that cheap tchotchke you bought as a souvenir.

Bottom line

All this talk of forms, looking for signs, standing in line and getting stamped can take the impulse out of your impulse buy. However, it could save you a lot of money in the long run.

If you pay attention and budget your time wisely, you might get back enough money through VAT refunds to help pay for your next visit across the Atlantic.

Related reading:

• When is the best time to book flights for the cheapest airfare?
• The best airline credit cards
• What exactly are airline miles, anyway?
• 6 real-life strategies you can use when your flight is canceled or delayed
• Maximize your airfare: The best credit cards for booking flights
• The best credit cards to reach elite status
• What are points and miles worth? TPG's monthly valuations

This Travel Hack Can Help You Save Hundreds of Dollars While Shopping Abroad

Go ahead . . . buy that expensive european designer bag. you may get some cash back thanks to this handy travel tip..

• Copy Link copied

When it comes to VAT refunds, the more you spend, the more you can get back.

Photo by AboutLife/Shutterstock

If you’ve never heard of the VAT refund, get ready to see some serious financial returns the next time you go shopping abroad. If you’re looking for the best price on a high-end item, you might be able to save thousands of dollars by waiting to buy it overseas. (Discount luxury shopping: It’s not an oxymoron.) Here’s the breakdown on how to save money with VAT.

What is VAT?

VAT—sometimes redundantly called VAT tax—stands for value-added tax. This tax is associated with shopping in the European Union, though more than 160 countries around the world use value-added taxation. It’s a sales tax paid by consumers (not businesses), and it doesn’t exist in the United States. Only visitors—including U.S. tourists—are able to qualify for a VAT refund.

Keep in mind, VAT is often factored into the price of a product (so a €100 dress with a 20 percent VAT rate might have a price tag of €120). Other times, it is listed on the receipt. Ask a sales associate wherever you’re shopping if it’s unclear.

The rate of VAT in Europe varies depending on where you’re visiting and shopping, and it ranges from 7.7 percent in Switzerland (technically not an E.U. country, and it’s set to increase its VAT to 8.1 percent in 2024) to 27 percent in Hungary. The average VAT rate in the E.U. is 21.3 percent , and the minimum in the E.U. is 15 percent. Deloitte provides a very useful country-by-country breakdown .

But rates can also vary depending on what you’re buying. For example, food and pharmaceutical products are typically taxed at a lower rate than leather goods like shoes and handbags.

Can you get a VAT refund in the U.K.?

It depends: Travelers were allowed to do so throughout the U.K. up until December 31, 2020, but Brexit put an end to VAT refunds. Currently, the only country in the region that offers VAT refunds to overseas visitors is Northern Ireland.

If you’re hoping to buy luxury goods in Europe—good news. You could qualify for a VAT refund.

Courtesy of Ira Komornik/Unsplash

What qualifies for a refund?

Almost all luxury goods—including clothes, shoes, cosmetics and skincare, jewelry, handbags, leather goods, and art—will have a value-added tax. Many items qualify for a VAT refund, but it’s important to note that only new goods (not used) can be claimed. Each transaction also has to be over a certain threshold, and this threshold varies by country. For instance, you have to spend over €100 per transaction in France to qualify for a VAT refund. This means you can buy several products at one store for a total of more than €100, but if you spread those same items out over multiple stores, you would not get to claim the refund. You can also make a single large purchase over €100 at many different stores and claim for each transaction.

Your items are supposed to be unused when you declare them. That said, you can typically get away with using your new handbag or coat. But you may want to hold off on breaking in those new leather slingbacks before you present them to customs. You also will want to ensure that items you are declaring are recent purchases because you must make your claim within three months of leaving the European Union.

Items that do not qualify for a VAT refund

• Vintage items —Those vintage Chanel clip-on earrings you bought from the Marché aux Puces de Saint-Ouen? The (probably very good) price you paid is final. No refunds here.
• Goods purchased in the tax-free zones of airports —because there is nothing to refund
• Transactions that do not meet the minimum threshold
• Services —including hotel stays, restaurant meals, and tour guide fees—because these are experienced abroad and not brought home
• Anything you aren’t bringing back to the United States . The goods have to come home with you.
• Cars — unless the vehicle is being used exclusively for business purposes, in which case you can get up to 50 percent back on your VAT
• Alcohol and tobacco
• Counterfeit items —This may seem obvious, but a faux Dior tote does not qualify for VAT (and in France, purchasing a counterfeit is a criminal offense).

Keep in mind: Vintage items are not eligible for VAT refunds.

Photo by Kamil Macniak/Shutterstock

What you need to do while shopping

• Make sure you have your passport with you before you start shopping —you’ll have to provide proof that you are a visitor . If you’re shopping specifically to get a discount, ask the shop if it participates in VAT refunds and if it has a specific purchase-amount threshold. On occasion, smaller shops and boutiques do not participate, therefore you will not be able to get a VAT refund on that purchase. It’s best to know before you start shopping.
• Ask for paperwork at each place you shop —the sales assistant, cashier, or store manager should have information. Occasionally, stores can process a refund for you on site (called “instant refund”), but most use Global Blue, Premier TaxFree, or another third-party to handle the refund process. [Author’s note: I shopped at some of the largest stores in Paris—Le Bon Marché, Liberty, Louis Vuitton, Chanel—and was unable to get the instant refund at any of them.]
• Don’t leave the store without signed, official documents. Many department stores have a VAT office, such as Galeries Lafayette Haussmann in Paris. These offices will help you get your paperwork sorted. Staple your receipts to your forms, and keep them in a safe place so you can access them when you’re claiming your refund.
• Ask for a second receipt. You may want this for U.S. customs upon your arrival home.
• Try to group purchases at boutiques into one transaction , because you may get a higher rate of return. Don’t buy a bag at Hermès and then come back later to get a scarf. If you can, buy them both at the same time.

The VAT refund should be processed at your final port of departure when you’re leaving the E.U.

Courtesy of Unsplash/Getty Images

How to collect your refund

When you’re ready leave the E.U.—your last port of departure—make sure you have your goods ready to declare and your paperwork completed, then head to the airport well in advance of your flight. Keep in mind, if you’re traveling around multiple European countries, you do not go through this process each time you leave and go somewhere new within the continent (even if you’re going to a non-E.U. country, like Norway or Switzerland).

The refund process is completed on your final departure when you’re headed home. Your forms should have instructions on what steps to take (and where to go), but here’s what to do.

• Find a VAT counter. You’ll want to identify your options in advance of your flight so tracking them down is easier on the day of your travel— Moneycorp , Planet , and Global Blue are fairly common. Check your individual airport’s website for more information; some will have detailed instructions specific to their location.
• Some airports may offer a dropbox when there’s no one there to check your paperwork. This is relatively rare, but you may run into a situation where there’s no one at the counter to take your paperwork. Look for a drop box where you can take your completed paperwork for processing. The downside here is that it can add time to the process if anything is filled out incorrectly or information is missing. So make sure to double-check everything before making the drop.
• Once you’ve arrived at the counter, present your completed forms and paperwork alongside your passport and boarding pass to the employee. You may need to present certain purchased goods, particularly if they’re over €1,000. At this point, if you do have a larger purchase, you will likely be sent to the local customs office to have an officer see your goods and give you a customs stamp. If that step doesn’t apply to you, an employee will stamp your documents at the refund counter and either mail them off or hand them to you to drop into a mailbox.
• Choose your refund delivery method. You receive your refund either in cash or as a direct credit back on your credit card. Cash refunds are faster but typically have a higher fee. Credit card refunds can be slower but usually get more money back. Sometimes the refund is instant, sometimes it takes five days, sometimes it takes months. Keep your paperwork in case you have to track down your refund. If you haven’t received information in six weeks, it’s time to contact the agency.

Now for the less fun news: You do not get the full 15–20 percent VAT refunded. There are unavoidable processing fees that unfortunately cut into the final refund amount, but typically it’s a small charge. You can get an estimate on the Global Blue website of what your refund might be.

VAT is a value-added tax on goods purchased within the European Union.

Courtesy of Jacek Dylag/Unsplash

How this affects your travel home

• Consider adding at least two hours to your travel time when declaring your goods at an airport VAT counter.
• Repack your items into your checked bag after you present them for your refund.
• In addition, you have to declare your goods when you come back to the United States , and a customs officer may want to see your items if you’ve spent over $800. You may also have to pay duty, depending on the value of your purchase and the size of your party. The first $800 (per person) is tax free, the $1,000 after that is taxed at 3 percent, and beyond that the rate is variable.

Can I just go to the duty-free airport shops?

Yes, but often the products are only slightly discounted from what you’d see outside the terminal. You’ll save more money if you go through the VAT refund process.

Make sure to declare any goods purchased abroad that are worth over $800 to U.S. Customs.

Courtesy of Arturo Ray/Unsplash

How to maximize VAT savings

At this point you may be thinking that’s way too much effort for a few bucks. To that end, you’d be right—sometimes this is too much if the rate of return is small. The best way to maximize your VAT refund is on larger purchases like luxury items or a group of items at one store.

• Buy something made in the country you’re visiting. Purchasing a Louis Vuitton purse in France will save you a significant amount of money compared to buying the same purse in the United States.
• Travel with family. The United States allows $800 per person of duty-free goods. If you travel with a family of four, that’s $3,200 collectively of U.S. tax–free import.
• Don’t try to avoid U.S. customs tax authorities if your purchase is over $800. This is tax fraud, and you can be fined a major penalty and lose Global Entry status. Your VAT refund is connected to your passport number, so do yourself a favor and go through the process.
• Pay in euros or use a credit card with no foreign transaction fees so you don’t incur unnecessary charges.

Some travelers have managed to save substantial amounts on certain luxury goods. Others have had less success, despite following instructions to the letter. But if you’ve spent a lot on souvenirs in Europe, you’ll at least want to try to get that VAT back to offset the duty you’ll pay in the United States.

Is there any way to avoid paying the VAT?

Technically, yes. If a store offers home shipping services, you could opt to have your purchase sent directly to your place (thus saving precious packing space!). The shop won’t charge the VAT if you go this route. But there’s a catch: You’ll have to pay for the freight shipping, which can add up very quickly. So carefully weigh the pros and cons—what is the maximum shipping cost that will offset the inconvenience of dealing with the VAT refund paperwork?

This article originally appeared online in 2020; it was most recently updated on February 2, 2024 by Erika Owen, to include current information.

VATRefund.Org

Defending your rights to a VAT refund

Complete Guide to VAT Refund for Visitors in France

Are you planning a trip to France and wondering how to claim a VAT refund on your purchases? As a visitor to France, you may be eligible to buy goods tax-free and get a refund on the Value Added Tax (VAT) you paid during your stay. This guide will walk you through the process of obtaining a VAT refund step by step, making your shopping experience in France even more enjoyable (cheaper).

Country VAT rates

20% Standard VAT rate

10% Medicines and pharmaceutical

5.5% Food and books

2.1% Reduced rate for certain products and services

Minimum spend 100,01 euro . (or combined invoices, use an app!)

VAT Refund Calculator for France

Vat refund guide for france.

See French Customs Flyer (English)

1. Check Your Eligibility: Ensure that you are eligible for the VAT refund . To qualify, you must meet the following criteria:

• Be a non-EU resident.
• Have spent less than six months in the EU.
• Be at least 16 years old.
• Make purchases for personal use, not for commercial purposes.

2. Carry Your Passport or non-EU-resident card

Always carry your passport with you while shopping. Your passport will be needed as proof that you are a non-EU resident eligible for the VAT refund.

3. Check vendor for VAT Form capabilities, Request an Invoice & VAT Tax Refund Document

While making your purchase, ensure you get an itemized invoice from the store. The invoice should include details such as the store’s name, your purchases, the total amount paid, and the VAT amount.

Ask the store for thea VAT Tax Refund document, also known as a tax-free form. This form will be crucial for processing your VAT refund. The form must be signed by both the retailer and you.

Before You Check-in your luggage/departure:

6. Stamp/Validate your VAT Refund form at a Customs Office at the place you are leaving the European Union.

If France is not your last country in Europe you go to before going back home, stamp your tax form in the country you will leave from . May it be Italy, Spain or another EU member state.

(Most Customs Offices / PABLO are found before the passport control . So go there before you check in your luggage, so you can show your bought items).

Before departing France, stamp your VAT refund document at a customs office at the airport or train station. These days, most forms go through an electronic machine and system called ‘Pablo’. You will only have to scan your form (or digital form or helping app) and you are done!

Keep the items with you when passing the customs office for your tax exemption stamp. You may be subjected to a test if you actually are taking the claimed items with you abroad. In case you cannot show them, a refund will not be given and you risk getting a fine .

Understanding Tax Refund Calculations

Understanding how tax refunds are calculated is crucial. While it might seem that a 20% VAT refund would result in a 20% reimbursement from your purchase, it’s not quite that simple. The calculation follows this pattern: Starting with 100 Euro + 20% equals 120 Euro. However, 120 Euro – 20% doesn’t equal 120 Euro. Instead, it’s 120 Euro – 16.66% which equals 100 Euro.

Keep in mind that the tax refund amount will be further reduced after accounting for administration fees.

7. Anticipate Your Refund

You can expect to receive your VAT refund within the next 30 to 90 days, up to 6 months in case of the holiday season (June-August). The refund will be credited to the same credit card you used for the eligible purchases.

8. Enjoy Your Savings !

Once you receive your VAT refund, enjoy the extra savings from your tax-free shopping in France!

Happy shopping and bon voyage!

Understanding the VAT Tax Refund Process

Steps for obtaining vat tax refund.

Start Your Shopping Spree! Spend €100.01 or More at a Single Store or Department Store Request an Invoice for Your Purchase Get a VAT Tax Refund Document Ensure You Carry Your Passport Stamp your Tax document Before Leaving France/EU Validate Your Tax Refund Documents at the Airport, Train Station or Port of departure Keep Your Purchases Accessible for Customs Inspection Anticipate Your Refund! Within the Next 30 – 90 Days, Receive Your Refund on the Original Credit Card Used for Purchase. It can take up to six months when you submit during summer.

From the French Customs ‘ website:

If you travel by international train

You must have the tax refund slips stamped during the trip or at the border station (on leaving the European Union) by the customs service.

If you are traveling on a ship or an international road vehicle

You must have the tax refund slips endorsed by the customs services at the last port or at the road exit point from the European Union.

If you leave the European Union via a Member State other than France

After checking, the customs service of this Member State will return the document to you.

Locations of French Customs PABLO VAT Stamp terminals:

Location of Pablo terminals deployed in the french country (pdf)

Question & Answers

Q&A: VAT Refund in France

Who is eligible for a VAT refund in France? Non-EU residents who have spent less than six months in the EU, are at least 16 years old, and make purchases for personal use (not commercial purposes) are eligible for a VAT refund in France.

How much VAT refund can I expect to receive? On average, you can expect a 12% refund on your eligible purchases (with a commercial VAt refund processor). However, certain items such as pharmacy goods offer a 10% refund, and food and books provide a 5.5% refund.

What is the minimum purchase amount required to qualify for a VAT refund? The minimum purchase amount to qualify for a VAT refund varies, but it is usually around €175. Some stores may have different minimum spend requirements, so it’s best to check with them beforehand.

How do I request a VAT refund form? When making a qualifying purchase at a store displaying the “Tax-Free Shopping” or “Detaxe” logo, ask the cashier for the VAT refund form and present your passport as proof of eligibility.

Where do I get the VAT refund form stamped? Before leaving France, you must get the VAT refund form stamped by the customs authorities. You can do this at the airport or at designated customs offices in major cities. See locations .

Can I get an immediate refund at the store? Some large department stores offer on-the-spot refunds at a slightly lower rate (around 10.8%). However, for the standard refund process, it may take several weeks to months to receive the refund.

Do I need to keep my purchases accessible? Yes, it’s essential to keep the purchased items with you and accessible, as customs officers may want to verify them when you request the VAT refund.

Can I use a VAT refund app for the process? Yes, there are VAT refund apps available that allow you to process the refund digitally from your mobile phone. This can help consolidate purchases from different shops and avoid the minimum spend restriction per transaction.

Can I claim a VAT refund if I have a layover in another EU country? No, you must process the VAT refund in the country you leave from, not where the layover occurs.

What if I forget to submit the VAT refund form at the airport? If you forget to submit the VAT refund form at the airport, you can still request a refund by following specific steps and submitting the necessary documents to the French Customs authorities within six months of purchase.

• Credit Cards
• All Credit Cards
• Find the Credit Card for You
• Best Credit Cards
• Best Rewards Credit Cards
• Best Travel Credit Cards
• Best 0% APR Credit Cards
• Best Balance Transfer Credit Cards
• Best Cash Back Credit Cards
• Best Credit Card Sign-Up Bonuses
• Best Credit Cards to Build Credit
• Best Credit Cards for Online Shopping
• Find the Best Personal Loan for You
• Best Personal Loans
• Best Debt Consolidation Loans
• Best Loans to Refinance Credit Card Debt
• Best Loans with Fast Funding
• Best Small Personal Loans
• Best Large Personal Loans
• Best Personal Loans to Apply Online
• Best Student Loan Refinance
• Best Car Loans
• All Banking
• Find the Savings Account for You
• Best High Yield Savings Accounts
• Best Big Bank Savings Accounts
• Best Big Bank Checking Accounts
• Best No Fee Checking Accounts
• No Overdraft Fee Checking Accounts
• Best Checking Account Bonuses
• Best Money Market Accounts
• Best Credit Unions
• All Mortgages
• Best Mortgages
• Best Mortgages for Small Down Payment
• Best Mortgages for No Down Payment
• Best Mortgages for Average Credit Score
• Best Mortgages No Origination Fee
• Adjustable Rate Mortgages
• Affording a Mortgage
• All Insurance
• Best Life Insurance
• Best Life Insurance for Seniors
• Best Homeowners Insurance
• Best Renters Insurance
• Best Car Insurance
• Best Pet Insurance
• Best Boat Insurance
• Best Motorcycle Insurance
• Travel Insurance
• Event Ticket Insurance
• Small Business
• All Small Business
• Best Small Business Savings Accounts
• Best Small Business Checking Accounts
• Best Credit Cards for Small Business
• Best Small Business Loans
• Best Tax Software for Small Business
• Personal Finance
• All Personal Finance
• Best Budgeting Apps
• Best Expense Tracker Apps
• Best Money Transfer Apps
• Best Resale Apps and Sites
• Buy Now Pay Later (BNPL) Apps
• Best Debt Relief
• Credit Monitoring
• All Credit Monitoring
• Best Credit Monitoring Services
• Best Identity Theft Protection
• How to Boost Your Credit Score
• Best Credit Repair Companies
• Filing For Free
• Best Tax Software
• Best Tax Software for Small Businesses
• Tax Refunds
• Tax Brackets
• Taxes By State
• Tax Payment Plans
• Help for Low Credit Scores
• All Help for Low Credit Scores
• Best Credit Cards for Bad Credit
• Best Personal Loans for Bad Credit
• Best Debt Consolidation Loans for Bad Credit
• Personal Loans if You Don't Have Credit
• Best Credit Cards for Building Credit
• Personal Loans for 580 Credit Score Lower
• Personal Loans for 670 Credit Score or Lower
• Best Mortgages for Bad Credit
• Best Hardship Loans
• All Investing
• Best IRA Accounts
• Best Roth IRA Accounts
• Best Investing Apps
• Best Free Stock Trading Platforms
• Best Robo-Advisors
• Index Funds
• Mutual Funds
• Home & Kitchen
• Gift Guides
• Deals & Sales
• Best of Wellness Awards 2024
• Sign up for the CNBC Select Newsletter
• Subscribe to CNBC PRO
• Privacy Policy
• Your Privacy Choices
• Terms Of Service
• CNBC Sitemap

Follow Select

Our top picks of timely offers from our partners

Value-Added Tax (VAT): What it is and how to get it refunded if you shop while traveling

What is a value-added tax (vat) and can i get it refunded.

The idea of a value-added tax (VAT) is a foreign concept to most Americans. That puts us in the minority, though: VAT , a multi-layered tax applied at each stage of the manufacturing and marketing process, is used in more than 170 countries —including Canada, Mexico and just about all of Europe.

VAT is applied to most goods and services but if you're planning on international travel , there's a good chance you can get a refund on at least some of your VAT payments.

What we'll cover

What is a value-added tax (vat), sales tax vs. vat.

• VAT pros and cons
• How you can get your VAT refund

Bottom line

A value-added tax (VAT) is very similar to a traditional sales tax , in that the consumer pays it at the point of purchase. It's typically a percentage of the price of the product, but standard VATs range greatly among nations.

The largest difference between VAT and sales tax is when the tax is applied: With a sales tax, the levy is paid only once, by the retail customer. With VAT, though, each stage of the production process is taxed, from raw materials to the finished product.

For example, a farmer sells flour to a baker for $1 plus a 10% VAT. The baker pays the farmer $1.10 and the farmer sends 10 cents to the government. The baker then turns that flour into a birthday cake and sells it to a supermarket for $3, plus a 30-cent VAT. The baker reports the sale but only has to submit 20 cents to the government because she already paid 10 cents VAT when she bought the flour. Finally, the market sells the cake to a customer for $5, plus a 50-cent VAT. The customer pays $5.50 but the grocer only has to send 20 cents to the government to the government because he already paid 30 cents VAT when he bought the cake.  The government still gets its 50 cents from the sale of the birthday cake, but it's divided up along the supply chain — 10 cents from the farmer, 20 cents from the baker, and 20 cents from the supermarket.

Does the United States have a VAT?

The United States is in the minority of countries that don't levy a value-added tax, though most states have a sales tax that serves the same purpose. The US also charges federal excise taxes on certain goods, including fuel, alcohol and tobacco products.

Supporters of a VAT in the US claim it would streamline the revenue process and limit tax fraud. But critics argue it takes revenue control away from states and forces small businesses to carry much greater administrative costs.

How to get a VAT refund

Visitors to countries with VAT still have to pay it, but they can qualify for a refund on certain items. ( The European Commission defines a visitor as "any person who permanently or habitually lives in a country outside the EU.") It's a fairly complicated process and it's easy to miss a step, be told incorrect information or just have your request rejected for no discernable reason. So be sure you want to put in the effort.

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 . So it's usually high-ticket items, like jewelry or fine clothing, that qualify for a VAT refund, not a paperback novel or suntan lotion. There are also a number of goods and services that are not eligible for refunds, including hotel rooms and meals.

It's also important to confirm the store you're patronizing participates in a VAT refund program. Some don't and others have very specific requirements. VAT policies may vary within a country, too: While refunds are not available in the majority of the UK , you can sometimes get one in Northern Ireland.

Let the shop know you're interested in a VAT refund. You'll need to provide proof of your "visitor" status—usually your passport, though you may have to show your airline ticket, as well—and fill out some paperwork. Many stores have relationships with refund companies such as Global Blue or Planet , which can streamline the process.

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.  You'll have to present your documents to a customs agent, whose stamp is required as "proof of export." There could be a substantial wait, so be sure to get to the airport early. And you may have to present the items, so don't pack them away in your checked luggage. 

The good news is that larger airports have currency exchanges or branches of refund companies that will give you your money, minus a fee. It may come in local tender or as a charge back on your credit card.  

While you may have to jump through hoops to qualify for your VAT refund, a credit card with no foreign transaction fees can save you from more financial hassles while traveling.

The American Express® Gold Card is a great option for international travel, with no foreign transaction fees, 3x on points on flights booked directly with an airline or on amextravel.com, and a $100 credit on a two-night minimum stay at a Hotel Collection property through American Express.

American Express® Gold Card

4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases

Welcome bonus

Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.

Not applicable

Regular APR

See Pay Over Time APR

Balance transfer fee

Foreign transaction fee, credit needed.

Excellent/Good

See rates and fees , terms apply.

Read our American Express® Gold Card review .

The Capital One VentureOne Rewards Credit Card doesn't charge foreign transaction fees, either, and members earn unlimited 5 miles per dollar on hotels and rental cars booked through Capital One Travel, in addition to unlimited 1.25 miles per dollar on all purchases (see rates and fees ). There's also a welcome bonus of 20,000 bonus miles if you spend $500 on purchases within the first three months from account opening.

Capital One VentureOne Rewards Credit Card

5 Miles per dollar on hotel and rental cars booked through Capital One Travel, 1.25X miles per dollar on every purchase

Earn a bonus of 20,000 miles once you spend $500 on purchases within 3 months from account opening, equal to $200 in travel

0% intro APR on purchases and balance transfers for 15 months

19.99% - 29.99% variable

3% for the first 15 months; 4% at a promotional APR that Capital One may offer you at any other time

See rates and fees . Terms apply.

Read our Capital One VentureOne Rewards Credit Card review.

Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox.  Sign up here .

A value-added tax can catch some travelers off guard and getting a VAT refund takes patience and persistence. But if you're eyeing a big-ticket purchase while traveling, it can be worth the effort. So make sure you learn the proper procedures and keep track of your paperwork.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products . While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up on CNBC Select's in-depth coverage of  credit cards ,  banking  and  money , and follow us on  TikTok ,  Facebook ,  Instagram  and  Twitter  to stay up to date.

For rates and fees of the American Express® Gold Card, click here .  

• 5 hidden insurance fees to avoid Liz Knueven
• Can I pay my mortgage with a credit card? Kelsey Neubauer
• How can I get homeowners insurance after nonrenewal? Liz Knueven

How to get a travel tax refund when leaving the EU

Every year visitors to Europe lose millions of Euros in unclaimed tax refunds because they either don't know they can claim it back or because they might find the process too involved.

This is rather regrettable because when you buy virtually something in the European Union (EU) you will pay as much as 25% VAT - and in many cases, travelers from outside Europe can claim a tax refund when returning to their home country. In what follows we will tell you exactly what you need to know and do to save yourself a lot of money next time you visit Europe.

What exactly is VAT?

The term VAT refers to value-added tax, a consumption tax that is paid by consumers when they buy certain items or services. It is not the same as a revenue or income tax.

When you visit Europe and buy products and services, the price typically includes VAT. Locals of course pay the same tax, the difference is they can't claim anything back.

What is the VAT rate in Europe?

In the EU (European Union) the value added tax rate typically varies between 5% and 25%, depending on which country you are in. Some EU countries also apply different VAT rates to different types of products and services. These are often categorized as either super-reduced, reduced, or standard.

If, for example, you travel to France, certain products will include VAT at 2.1% while on others the VAT rate will be 5.5%, 10%, or even 20%.

VAT rates for each European country (as of April 2023) 

Below is a summary of the VAT rates of the various European nations, including Schengen area countries , and the minimum amounts you have to spend to be able to claim a tax refund when you leave.

• Austria (20%) (€75.01)
• Belgium (21%) (€125.01)
• Bulgaria (20%) (250 BGN)
• Croatia (25%) (740 HRK)
• Czech Republic (21%) (2,001 CZK)
• Denmark (25%) (300 DKK)
• Estonia (20%) (€38.01)
• Finland (24%) (€40)
• France (20%) (€175.01)
• Germany (19%) (€50.01)
• Greece (24%) (€50)
• Hungary (27%) (74,001 HUF)
• Iceland (24%) (11% on food & books) (6,000 ISK)
• Ireland (23%) (€75)
• Italy (22%) (€154.95)
• Latvia (21%) (€44)
• Lithuania (21%) (€55)
• Luxembourg (17%) (€74)
• Malta (18%) (€100)
• Netherlands (21%) (€50)
• Norway (25%) (315 NOK)
• Poland (23%) (200 PLN)
• Portugal (23%) (€61.50)
• Romania (19%) (250 RON)
• Slovakia (20%) (€100.01)
• Slovenia (22%) (€50.01)
• Spain (21%) (€0.01)
• Sweden (25%) (200 SEK)
• Switzerland (8%) (300 CHF)
• Turkey (18%) (118 TRY)

What does a VAT refund involve?

The term VAT refund refers to the authorities refunding the amount of VAT a visitor from outside Europe paid on products bought while visiting the region. If the product qualified for a refund and the VAT rate is 25%, for example, these travelers will be able to get the full amount of the tax refunded when they leave the EU again.

What types of products qualify for a VAT refund

The exact products on which you can claim a VAT refund differ from one country to the next. The general rule is that this only applies to items that can fit in your luggage. If you bought a new car in Europe, for example, the VAT on this is non-refundable. On the other hand, there is a minimum purchase price to qualify for a VAT refund. See the list above for more details.

Certain products and services are also not included, for example, tobacco products, hotel bills, and services.

When do I qualify for a Value Added Tax refund?

To qualify for a VAT refund you should not be a permanent resident of a European country and you must have bought the products while visiting Europe.

If you live outside Europe on a permanent basis, you will typically be regarded as a 'visitor' for the purposes of a VAT refund when you travel to one or more European countries. In these cases, you are not liable for VAT, which is why you are allowed to claim a refund. When you buy merchandise or goods in Europe and take it back to your home country, this is viewed as an export - and exports from Europe are VAT exempt.

To qualify for a VAT refund, your purchases should be more than a certain amount. This also differs from one EU country to the next, but in the majority of cases you must spend at least that amount in a particular location. If the minimum, for example, is 100 EUR, you can not spend 10 EUR at 10 different locations. It has to be 100 EUR at a single location.

Will I get my Value Added Tax refunded before I leave Europe, or afterward?

To claim the VAT refund, you will have to depart from Europe. Merely crossing an internal border between two countries is not enough. To qualify as an export, the items you bought have to leave Europe.

Do items I bought online qualify for a tax refund?

The answer here is yes, visitors do qualify for a VAT refund even on items they bought online. Similar rules to offline shopping apply: you must live outside Europe and the amount of your purchase has to be higher than the minimum determined by the country where the online store is located.

What you need to know about getting a refund for Value Added Tax

The procedure often differs slightly from country to country, but generally speaking, this is what you will have to do:

[1] Make sure you can provide proof of where you live

To kick off the refund procedure, you will be asked to show some form of identification that proves that you do not live in the EU. Your passport should in the majority of cases be all you need.

[2] Do the necessary paperwork

Ask the shop owner to assist you with filling out the relevant tax-free form. Double-check the information to make sure it's correct and do not lose your receipts! Tourism-savvy shop owners often offer an on-the-spot refund as an added service. It's not hard to find those: they typically display a 'tax free' sign outside their shop.

If the shop owner provides a direct cash or credit card refund, you are most likely going to pay a (relatively small) fee for the service.

[3] Make sure you know what to do when you get to the airport

You should take your refund forms, receipts, and the items you bought with you to a VAT office at the airport. Allow enough time before your flight departs. If the merchant didn't give you an instant refund, you might get your tax refund at the last stop before you leave the EU.

That is not the end of the story though. To qualify for a VAT refund, you will have to prove that the items you bought have left the EU. This means that you will not be able to claim a tax refund on the VAT you paid if you are merely leaving one EU country on your way to the next one.

[4] Look for the customs office

This can take quite a bit of time, so make sure you arrive early to your departure point. There are often fairly long queues in front of the customs office. The best is to complete this step even before you go to the check-in counter with your luggage. That is because the customs agent might want to confirm that your purchases qualify for a refund. Once this office has cleared your purchases. they will put a customs stamp on your forms to make it official.

To qualify for a VAT refund, the items you bought have to be new. You can not get a tax refund on used products. To prevent any misunderstanding regarding this, rather refrain from using any of the items on which you would like to claim a tax refund. If it looks like it's been used a hundred times, customs might refuse to reimburse you.

You will often also be asked to show the items you bought when you get to the customs office. That is why you should rather not pack any of them in the luggage you are going to check in. This is particularly relevant if you plan to go to the customs office after you have checked in your luggage.

How long will it on average take before I get my refund?

You are definitely not getting your money right there at the customs office. If you bought anything at a shop that works with a specific refund service agent, you have to look for their office or desk when you get to the airport. Take the stamped documentation with you. Just remember that in this case you are going to pay a modest commission.

If you did not buy from one of these retailers, you will have to send the refund documentation via snail mail and wait until you get a response. If you paid for your purchases with a credit or debit card, remember to check your bank statements regularly.

It normally takes around 3 weeks before the VAT refund will show up in your bank account. Cheque payments also take around three weeks to get processed.

Can't I purchase items in Europe without having to pay VAT?

Unfortunately, that is not possible. The VAT will always form part of the purchase price and you will not be allowed to buy anything without this.

The best scenario is if you buy from a merchant that offers direct refunds. Yes, it will take a bit longer than usual because there will be more paperwork involved, but you won't have to wait as long to get your tax refund.

Another option is asking the shop owner to send the products you bought to your home address. In most instances, however, this will not benefit you financially because you will have to pay for the shipping costs and there could also be import duties involved once the products get to your own country.

There is only one way in which you can totally sidestep paying Value Added Tax and that is to buy everything at duty free shops. Unfortunately, these are mostly located at international airports and their prices can be high.

To get a refund, do I have to leave the EU directly from the country in which I bought the items?

Not at all. You can purchase your gifts and souvenirs in one European country and after that visit as many other EU countries as you wish, provided you stay within your time limit. When you finally decide to go back to your own country, you should, however, have the products you bought in the EU with you in case the customs officer wants to check them before he or she stamps your documents.

What is the situation if I am going to leave the EU by train?

You should be able to get your VAT refund forms stamped at the last train station. To do this, you will in most cases have to get off the train when it arrives at the station and find the customs office.

If you are lucky though, a customs officer will board the train before it gets to the border. Whether or not this will happen depends on the route of the train and the individual country's internal procedures. Your best option is to ask at the station when you buy the train tickets.

Schengen visas and ETIAS

Currently, citizens from about 60 countries do not have to apply for a Schengen Visa to visit Europe. The majority of the rest have to apply for such a visa before they are allowed to enter the region.

In 2025, most of the visitors from the 60 countries that currently do not need a Schengen visa will have to apply for ETIAS, or the European Travel Information and Authorization System. This includes travelers from the U.S. If you need more information about this, please visit the etias.com website.

• https://taxation-customs.ec.europa.eu/guide-vat-refund-visitors-eu_en
• https://www.globalblue.com/en/shoppers/how-to-shop-tax-free/destinations
• https://www.claimcompass.eu/blog/how-to-claim-vat-refund/
• https://www.skyscanner.com.my/news/tax-refund-in-europe-rules-how-to
• https://travel.stackexchange.com/questions/173873/how-can-i-get-my-taxes-back-while-exiting-schengen

This site uses cookies only for analytics purposes. Opt-out on the cookie policy page. Or agree and continue

• June 28, 2023

A Step-by-Step Guide to Getting VAT Refunds While Shopping in Europe

Table of Contents

Hey there! Have you ever heard about those amazing tax refunds you can get by shopping in Europe? It’s a fantastic way to save money, but if you have no idea how to get them, don’t worry—I’ve got you covered! In this guide, I’ll walk you through the entire process of getting a VAT refund while shopping in Europe. I’ll also share my personal experiences to make it easier for you to navigate. Let’s dive in!

How does VAT works in Paris?

Understanding VAT

First things first, let’s talk about VAT. VAT stands for Value Added Tax, and it’s automatically included in the price of everything you buy in Europe. Unlike in the United States, where taxes are added at the time of purchase, in Europe, the tax is already included in the displayed price. The VAT percentage can vary from country to country. For example, France and England have a VAT rate of 20%, while Italy’s VAT rate is 22%. If you want to know the VAT rate of a specific country, you can easily find a list online.

Who is Eligible for a VAT Refund?

As a non-EU resident, you are eligible to get a portion of the VAT back on your purchases. The process works like this: when you shop at a store that offers VAT refunds (many luxury stores do), you can qualify for a refund if you spend €175 or more in that store. It’s important to note that different stores might use different VAT refund programs like Global Blue or Premier Tax-Free, but the process remains the same regardless of the program used.

Reaching the Minimum Threshold

Now, let’s say you plan to make several small purchases that don’t individually reach the €175 threshold. In that case, I recommend visiting a department store that houses various brands. By collecting receipts from all your purchases, you can reach the required threshold, even if you didn’t spend €175 with a single brand. Stores like Selfridges, Harrods, Liberty, or Galeries Lafayette are excellent options. For instance, you could buy a bag for €95 from Longchamp and then head to Gucci to purchase a scarf or a wallet for €100. When you add up those two purchases, it totals €195, surpassing the minimum threshold.

VAT for business in Europe

The VAT Refund Process

Once you’ve made your purchases, it’s time to start the VAT refund process. If you’re shopping at a department store, they usually have a dedicated area for VAT refunds. Simply head there with all your receipts. The staff will consolidate your receipts into a single document and provide you with a form for the VAT refund from that department store.

If you’re shopping at a standalone boutique like Chanel or Louis Vuitton, you can go directly to the register. The cashier will assist you in filling out the necessary paperwork. Make sure to have your passport with you, as they’ll require your passport information for the refund process. In most cases, they’ll provide you with the receipt for your purchase and separate forms for your tax-free documents.

Cash Refund or Credit Card Refund?

At the point of refund processing, you’ll be asked whether you prefer to receive your refund in cash or via credit card. Each option has its pros and cons.

If you choose a credit card refund, you’ll get a higher refund amount, as fewer fees are deducted. However, the refund might take a bit longer to be credited back to your card. It’s worth noting that the exchange rate at the time of credit might affect the final refund amount.

On the other hand, if you choose a cash refund, you’ll receive the cash at the airport immediately. This means no waiting for weeks or months. However, the refund might take a bit longer to be credited back to your card. It’s worth noting that the exchange rate at the time of credit might affect the final refund amount.

On the other hand, if you choose a cash refund, you’ll receive the cash at the airport immediately. This means no waiting for weeks or months. However, keep in mind that there will be a service fee deducted from your refund amount, which varies depending on the refund company. The cash refund option is particularly useful if you’re leaving the EU from an airport where there are VAT refund counters.

Getting Your VAT Refund Form Stamped

Before leaving the EU, you must get your VAT refund form stamped by customs. This step is crucial as it proves that you are taking the items out of the country. Look for the customs office or desk at the airport, usually located after the security check-in but before the boarding gates. Present your purchases, receipts, and passport to the customs officer. They will inspect the items and stamp your refund form. It’s essential to ensure that you have enough time before your flight to complete this process, as queues at the customs office can be long, especially during peak travel times.

Submitting Your VAT Refund Form

Once your form is stamped, you have two options for submitting it: either by using a mailbox or at a refund counter. If you have chosen a credit card refund, you can simply drop the stamped form into the mailbox provided. If you prefer a cash refund, you’ll need to locate the VAT refund counter. These counters are usually located near the departure gates, and they are operated by the refund companies like Global Blue or Premier Tax-Free.

At the counter, present your stamped form, receipts, and passport. The staff will verify your documents and process the refund. If you chose a cash refund, you’ll receive the refund amount in the local currency or another currency of your choice. Remember to keep the refund receipt provided by the staff, as you may be required to show it at the boarding gate along with your items.

Final Tips and Recommendations

• Plan your shopping strategically to reach the minimum spend threshold for VAT refunds.
• Keep all your receipts organized and in a safe place.
• Familiarize yourself with the VAT refund process of the specific stores or refund companies you plan to use.
• Allow sufficient time at the airport for customs stamping and refund submission.
• Double-check the accuracy of your refund form, ensuring your passport information is correct.
• Consider the pros and cons of cash and credit card refunds before making a decision.
• Be aware of the service fees associated with cash refunds and factor them into your calculations.

Remember that VAT refunds are a privilege for non-EU residents, so take advantage of the opportunity to save some money while enjoying your shopping experience in Europe. Safe travels and happy shopping!

What Comes After you decide between Cash refund or Credit Refund?

Once you’ve decided whether you want a cash refund or a refund on your credit card, you can proceed with the process. When making your purchases, make sure to let the cashier know that you want a VAT refund. They will provide you with the necessary paperwork.

On the day of your departure, as you head to the airport for your international flight, remember to allocate extra time for the refund process. It’s recommended to arrive at least three hours early, especially during peak tourist seasons or when major events are taking place. This will ensure that you have ample time to complete the refund procedure.

Upon reaching the airport, locate the VAT refund office, usually situated outside the security check-in area. Bring all your purchases and paperwork with you. At the office, you’ll find kiosks where you can input your passport information and scan the barcodes on your documents. The screen will either flash green, indicating that everything is in order, or red, signaling that further verification is required.

If you receive a green light, you can proceed without any additional steps. You won’t need to show your items to anyone, and you can simply scan the documents, leave, and continue your journey. However, if the light flashes red, you’ll need to present your items and paperwork to an officer at the window. They will review your documents, stamp them, and verify that you’re exporting the items out of the country.

After the verification process, you’ll either need to mail the stamped forms or get a cash refund, depending on your chosen option. If you selected a credit card refund, you can drop the stamped forms into the designated mailbox. The refund will be processed, and it may take anywhere from one week to six weeks for the amount to appear on your bank statement.

If you opted for a cash refund, you’ll need to visit a separate window designated for cash refunds. Present your scanned or stamped forms, and they will assist you in receiving the cash refund. Remember to seal your paperwork in the provided envelope and deposit it in the large post boxes located in the VAT refund area. These boxes are usually brightly colored and easy to spot.

Now, all you have to do is wait for the refund to be processed. Keep an eye on your bank statement, as the refund amount should appear once the processing is complete. Congratulations! You’ve successfully saved money through the VAT refund process.

To ensure your eligibility for a VAT refund, remember these key parameters:

• Non-EU resident: Only non-EU residents are eligible for VAT refunds.
• Minimum spend: Your purchases must exceed the minimum spend threshold, which is typically around 175 euros.
• Timely departure: You must leave the country within one month of the purchase date.

Keep in mind that not all items are eligible for a VAT refund. Only tangible, non-consumable items that can be exported out of the country qualify. Additionally, Switzerland, Norway, and Turkey are not part of the EU, so if you make purchases in these countries, you’ll need to file your VAT refund paperwork there before leaving for another country.

One important tip is to avoid placing luxury purchases in your checked baggage. Keeping them with you as carry-on items ensures their safety and allows for potential verification if required. Checked luggage can get lost, items can go missing, and fragile items may be damaged. Taking care of your valuable purchases personally is the best way to protect them.

Vat Refund for EU-Residents

If you’re a resident of the EU and you’re looking to save money on tax refunds, there’s a great way to do it—by purchasing items duty-free at an airport. One of the main airports for duty-free shopping is Heathrow in London, which offers a wide range of stores. Even if you live in London or anywhere else in the EU and you’re flying out of a major airport with plenty of stores you like, you can shop there and automatically save 20% by taking advantage of the duty-free prices. This applies to American citizens as well, who can shop at Heathrow without having to worry about tax refunds because they’ll be saving on taxes upfront.

However, there is a caveat when it comes to specific items. If you’re looking for something like a limited-edition or hard-to-find item, chances are it won’t be available at the airport. In that case, you would still need to go through the tax refund process.

It’s important to note that there are other fees involved when shopping overseas, such as customs and duties fees when you return to the US. While you may have saved money on taxes abroad, you may still have to pay taxes on those items once you’re back in the US. Currently, each person is allowed $800 in tax-free purchases. If you’re traveling with a group or family, each person is entitled to that $800, regardless of who made the purchases. For example, if three people are traveling together, they would have a total of $2,400 to spend without worrying about additional fees. Any amount exceeding the $800 limit per person would be subject to customs and duties fees, which are currently set at 3%.

While the customs and duties fees may not seem significant for smaller purchases, they can add up if you’re buying expensive items. For instance, if you buy an Hermès Birkin bag for $10,000, the fees will increase accordingly. Keep in mind that the VAT refund process is the main focus here, so I won’t delve into too much detail about customs and duties. However, if you have any questions about them, feel free to let me know in the comments section below.

Real Example on Vat Refund

Now, let’s dive into some real-world examples of how much you can save by shopping in Europe. People often choose to shop in Europe not only for the VAT refund but also because the actual prices of items are often lower compared to other regions. It’s crucial to keep a close eye on exchange rates, especially if they are fluctuating significantly, as even a small difference can affect your overall purchase price. Let’s look at some numbers to illustrate the savings.

During my recent trips to Europe, I made purchases from Chanel and Louis Vuitton, so I’ll provide examples from these brands. You can check the exact prices of items online by visiting the brand’s respective websites for the country you’re interested in, such as the French Louis Vuitton website (FR.louisvuitton.com). This way, you can see the prices in euros and calculate the exchange rate and potential refund amount in advance.

Here are the details of my purchases:

• Card holder: 300 euros, VAT refund: 50 euros
• Boy bag: 3,980 euros, VAT refund: 663.33 euros Total purchase price: 4,280 euros Total VAT: 713.33 euros Actual refund received: 556.40 euros Savings: $754.44
• Louis Vuitton:
• O Case: 420 euros, VAT refund: 70 euros Total savings: $129.04
• Passport holder: 225 euros, VAT refund: 37.50 euros Total savings: $49.29

To calculate the savings in US dollars, I used the exchange rate at the time of my purchases, which was 1 euro = 1.19 US dollars. Please note that exchange rates fluctuate, so it’s essential to check the current rates before making any calculations or decisions.

In total, by shopping in Europe and taking advantage of the VAT refund, I saved approximately $932.77 on my purchases. These savings can vary depending on the items you choose, their prices, and the VAT rates in different countries.

Remember that the VAT refund process involves certain steps and requirements. You’ll need to present your passport, complete a VAT refund form, and show your purchased items at the customs office upon leaving the EU. The refund can be obtained in cash at the airport or through a credit card refund, depending on the specific refund service provider.

It’s crucial to keep all the necessary documents, such as receipts and refund forms, as you’ll need them during the refund process. Additionally, some stores might have a minimum purchase requirement to qualify for a VAT refund, so be aware of those conditions.

Lastly, if you’re planning to make significant purchases, it’s advisable to familiarize yourself with the specific VAT refund procedures and regulations of the countries you’ll be visiting. This way, you can ensure a smooth and successful refund process.

Please note that the information provided here is based on my personal experience and may not reflect the current VAT rates or refund policies. It’s always best to double-check with the official sources and consult the customs and tax authorities of the countries you plan to visit for the most up-to-date and accurate information.

I hope this information helps you understand the potential savings when shopping in Europe and utilizing the VAT refund process. If you have any further questions, feel free to ask!

Want to keep up with our blog?

Get our most valuable tips right inside your inbox, once per month!

• 309 , Cash refund or credit card refund , Customs and duties fees , Duty-free shopping at airports , Getting VAT refund form stamped , Minimum spend threshold for VAT refund , Non-EU resident VAT refund , Real-world example of VAT refund , Shopping in Europe , Submitting VAT refund form , Tips for VAT refund process , VAT refund counter , VAT refund Europe , VAT refund for EU residents , VAT refund process , VAT refund process at the airport

Related Posts

Madeira Expedition: Sunrise at Pico Ruivo and Camping in Encumeada

I woke up early, around 6:30 am, my goal there was to capture the best

Madeira Expedition: Lunch at Pico do Areeiro and camp on Pico Ruivo

I woke up there in Pico Alto, it was cold, it was 8 am, I

Madeira Camping Expedition: Funchal to Pico Alto

This is the article number 1 of this series I left work on a Friday

Exploring Lauterbrunnen: A Day in the Swiss Paradise

This was a special Saturday. It was a cloudy morning, rainy weather in Switzerland, and

Swiss Hiking Adventure: Lucerne to Mount Pilatus

That day I had arranged with my cousin to go to a lake near Estavayer-le-lac.

Venice to Lucerne: Exploring Swiss Beauty and Italian Flair

We got up early in Venice to catch the flixbus to Milan. We went from

VAT refunds

This page deals only with refunds for cross-border transactions – where the VAT is incurred by people or businesses not based in the EU country concerned.

It does not address the "standard" situation of VAT refunds where both vendor and customer are based in the same country.

For refunds, we need to distinguish between 3 different situations:

• Cross-border VAT refunds to EU businesses
• VAT refunds to non-EU businesses
• VAT refunds to foreign tourists

Cross-border VAT refunds for EU businesses

Most businesses who incur VAT in connection with their activities in an EU country where they do not habitually supply goods/services (and so are not required to register for VAT) are nevertheless entitled to deduct that VAT ( Articles 170-171a VAT Directive ). This ‘deduction’ is made by means of a refund from the EU country where they paid the VAT.

How to get a VAT refund To avoid potential language problems, claimants send an electronic refund claim to their own national tax authorities – who then forward it to the EU country where the claimant incurred the VAT (once they have confirmed the claimant's identity and VAT identification number, and the validity of their claim).

If the tax authorities in the EU country where they incurred the VAT are late in making the refund, claimants are paid interest .

Procedure to follow Summary of VAT refund procedure (including responsibilities of national tax authorities at each stage).

Full rules – Directive 2008/9/EC .

Implementing Regulation 79/2012 - additional information the refunding country may need on claimant’s business activity and nature of goods/services acquired .

Who can get a VAT refund? To qualify for a refund under this procedure, during the refund period a business must NOT have :

• been based in the refunding EU country or
• exempted transport & ancillary services ( Articles 144, 146, 148, 149, 151, 153, 159 or 160 VAT Directive ) or
• supplies to customers liable for payment of the related VAT under the reverse-charge mechanism ( Articles 194-197 or 199 VAT Directive ).

The claimant's home EU country will not forward the claim to the refunding EU country if the claimant:

• is not a taxable person for VAT purposes
• only makes exempt supplies without right of deduction
• is covered by the special scheme for small businesses
• is covered by the flat-rate scheme for farmers.

EU country specific information

• Country-specific VAT guides (Vademecums) – limitations on the right to deduct VAT (e.g. restaurant costs, entertainment activities, cars, fuel)
• VAT refunds - country guide (Vademecums) – variations in the VAT refund rules in each EU country.
• EU countries using the business activity codes contained in Commission Regulation No 79/2012

These documents have been endorsed by national tax authorities of the EU countries in the Standing Committee on Administrative Cooperation and are available in English only . They are intended as guides only – for full, up-to-date details of the rules, contact the relevant national tax authorities .

Other guides

• VAT refunds – information requirements in EU country of refund .
• VAT refunds – common problems & solutions .
• VAT refunds – online tutorial.
• VAT refunds – contact points of the competent national authorities

VAT refunds for non-EU businesses

Businesses not based in the European Union who incur VAT in connection with their activities in an EU country where they do not habitually supply goods/services (and so are not required to register for VAT) are entitled to deduct that VAT. This ‘deduction’ is made by means of a refund from the EU country where they paid the VAT.

How to get a VAT refund Claimants must send an application to the national tax authorities in the EU country where they incurred the VAT – see VAT refunds - country guide .

Procedure to follow Full rules - Directive 86/560/EEC .

Who can get a VAT refund? To qualify for a refund under this procedure ( see Article 1 Directive 86/560/EEC ), during the refund period a business must NOT have :

• been based in any EU country or territory or
• supplied goods or services in the country where they incurred the VAT – except:
• services to customers solely liable for payment of the related VAT under the reverse-charge mechanism ( Articles 194, 196 or 199 VAT Directive ).

EU country-specific conditions Any EU country may:

• refuse to refund VAT in this way if the claimant’s country/territory does not grant reciprocal refund rights for VAT or similar to businesses based in that EU country.
• impose restrictions on the type of expenditure qualifying for refunds
• insist that the claimant appoint a tax representative.

VAT refunds for non-EU tourists

EU retailers can provide a VAT refund for goods sold to non-EU tourists when exporting them. Specifically this covers:

• Tourists whose permanent address or habitual residence (as stated in their passport or other recognised identity document) is not in the EU.
• EU nationals living outside the EU (who can prove this with a residence permit or similar).
• The tourists must provide proof of residence (e.g. non-EU passport or residence permit)
• The goods must be taken out of the EU within 3 months of being bought. The tourist must provide a stamped VAT refund document proving this.
• The value of the goods bought must be above acertain minimum (set by each EU country).
• Retailers can either refund the VAT directly or use an intermediary. One or other of them may charge a fee , deductible from the refunded VAT amount.

More on VAT refunds for non-EU tourists

Share this page

• Visa types Tourist Visa Transit Visa Multi - Single Entry
• Status of my visa
• Choose a visa Angola Antigua and Barbuda Armenia Australia Azerbaijan Bahrain Benin Brazil Cambodia Canada Colombia Cuba Djibouti Dominican Republic Egypt Ethiopia Europe Georgia Guinea India Ivory Coast Kenya Kuwait Kyrgyzstan Laos Madagascar Mexico Montserrat Myanmar Nepal New Zealand Oman Papua New Guinea Puerto Rico Russia Rwanda Saudi Arabia Singapore Sri Lanka Tanzania Thailand Turkey Uganda United Arab Emirates United States Vietnam Zambia Zimbabwe

• Travel tips

Maximize your travel budget: all about the VAT refund

• 1. What stands for VAT? 
• 2. How does the VAT refund process work? 
• 3. Can somebody else go shopping for me and ask for the VAT Tax refund?
• 4. Do the goods have to be brand new?
• 5. What if I don’t receive my VAT refund? 
• 6. An example case: traveling to Spain reclaiming your VAT tax refund

Traveling across Europe is an enriching experience, but expenses can quickly add up. However, there exists an opportunity to gain back some of the expenses in the form of VAT refund . In this article, we'll delve into the intricacies of how the VAT refund process works in Europe , what it takes to qualify, and how to make the most of this advantage. Are you going to be traveling in Europe? Then learn all about the VAT tax refund. 

Don’t forget to get the correct visa before your trip. If you need a visa for your trip you can rely on Visagov . Visagov’s services allows you to get multiple visas for over 50 countries with a simple form in your language. 

What stands for VAT? 

VAT stands for value-added tax , is a sales tax that everyone pays when purchasing a product. As a traveler from a non-European Union country who may be returning home or traveling to another non-EU country, you may be eligible to purchase goods free of VAT at special shops .

You are considered a visitor and therefore can try to buy goods free of VAT if you permanently or usually live in a country outside the EU . This will be proved with your address in your passport or identity document. European Union citizens who permanently live in a non-EU country are also eligible for the VAT refund. 

How does the VAT refund process work? 

The process of the VAT refund is quite straightforward. While the process will highly depend on the shop that processes the whole VAT refund , here are some general steps you can expect:  

• In a shop, ask the shopkeeper whether they provide the VAT tax refund . Shops that offer the VAT tax refund service usually will display a “Tax-free” or “VAT-free” sign in the window.
• If they do so, ask what threshold applies to the purchase. You must spend above a certain amount of money in order to be eligible for VAT refund (this depends on the country). You can enquire national tax authorities on the thresholds applicable in a specific EU country. 
• At the check-out, you will have to show proof that you are a visitor to the EU. Passports or ID that shows your residence outside the EU will be sufficient. In some cases, you might be asked to show your ticket as proof you will leave the EU.
• You will have to fill in a form with the necessary details . The shopkeeper will fill in the shop’s part of the form.
• Make sure you understand how you will receive the refund . In some cases, the shop will refund you. In other cases, the shop will use a third party to organize the refunds.
• Ask about whether the shop has an administrative fee for this service .
• Keep your invoice for the goods , the refund form, the goods and any other documents safe. You will have to show all of these are customs officers of the last EU country you leave. The customs officers must stamp the form as proof of export (if not you won’t get a refund). If you don’t receive the stamp, you must contact the entity in which you bought goods.
• Follow all steps outlined in your refund document, by customs authorities or by the shopkeeper. In larger airports or ports, you can claim your VAT refund immediately if the shop where you made the purchase offers this service (you will receive your refund on the spot). Otherwise, you will need to mail the refund form to the address provided by the shop.

Remember if you're going to visit different countries in the European Union, you will have to do the VAT refund process in the last airport or port (some certain train stations might also do it, but ask in advance the national authorities or your refund company on the arrangements applicable) you visit before leaving the EU.

After completing all formalities you will get the VAT refund . Keep in mind that it is unlikely you will receive all the VAT refunded, since in many cases there can be an administrative charge for the service in the shop. 

You cannot pay the VAT-free price in the shop directly while buying the goods. 

Can somebody else go shopping for me and ask for the VAT Tax refund?

The short answer is no. You must purchase the goods yourself and complete the VAT  tax refund process. Also know that not all shops offer the VAT refund arrangement and not all products can qualify as VAT-free (goods to be exported as freight, for example, and cars and yachts and others are excluded).

Do the goods have to be brand new?

You are not supposed to use your goods before leaving Europe . In fact, customs officials may specifically ask to see "your unused products" to verify your exporting of purchases. Some retailers will even staple and seal the shopping bag to prevent you from circumventing this rule.

We recommend  taking out the products for which you are seeking a VAT refund from your checked luggage . You must show all products to customs when leaving to the EU. 

All goods must accompany you when you leave the EU. The goods you purchase VAT-free must exit the EU before three months have elapsed from the date of their purchase .

What if I don’t receive my VAT refund? 

You can complain to the shop where you bought the goods because it is the main responsible to give the refund . Nevertheless, if that company used an intermediary you may first apply to them. The European Commission does not intervene in particular cases of VAT refund. 

An example case: traveling to Spain reclaiming your VAT tax refund

In Spain you will have the option of getting VAT refund in multiple stores and for multiple products following a simple procedure. You just have to ask the shops  to provide you with the DIVA (electronic VAT refund procedure) form, and validate it directly at the automatic terminals installed in Spain’s main ports and airports.

When you are returning to your home country , be sure to always carry: your passport, receipts or DIVA form for your purchases, the goods and your boarding pass.

At customs you will then have to reclaim VAT tax refund . You can choose to go through the Tax Free management body located where you are departing (usually you will be refunded then and there) or directly at the shop where you made the purchases (you will have the amount within 15 days).

The VAT you can find in Spain may vary from other countries in the EU . In fact, the VAT ranges from 8 to 27% across the EU. The UK, after Brexit, is no longer part of the VAT refund policy for tourists. Also, keep in mind that Switzerland, Norway, and Turkey are not part of the EU. Therefore, if you shop in one of those countries, make sure to get your documents stamped before you leave.

Catherine Carey

• Environment
• Road to Net Zero
• Art & Design
• Film & TV
• Music & On-stage
• Pop Culture
• Fashion & Beauty
• Home & Garden
• Things to do
• Combat Sports
• Horse Racing
• Beyond the Headlines
• Trending Middle East
• Business Extra
• Culture Bites
• Year of Elections
• Pocketful of Dirhams
• Books of My Life
• Iraq: 20 Years On

'As a tourist to the UK, can I still claim a VAT refund on goods purchased when I leave?'

The vat retail export scheme was cancelled on january 1, when the uk officially left the eu.

Heathrow Airport's duty free shopping arcade. Tourists can no longer apply for a VAT refund on goods purchased when they leave the country. Getty

I used to travel to the UK every few months for business and if I bought larger items when there, I was able to claim VAT. I have not travelled for some time due to the coronavirus pandemic but I have heard some mixed information about whether I will be able to do this at the airport on my way back after my coming trip. Please advise. AW, Abu Dhabi

It used to be the case that international travellers could reclaim VAT paid on many newly purchased items when leaving the UK.

As the rate of VAT in the UK is 20 per cent on most goods, this could be a significant sum. This situation has now changed and this option was cancelled with effect from January 1, 2021, a date when many changes took place as it was the first day that the UK was fully out of the EU after a transition period.

After a consultation on duty-free and tax-free goods carried by passengers, the Treasury announced that the VAT Retail Export Scheme will not be extended to EU visitors after Brexit, and will also be withdrawn for non-EU visitors in Britain.

While visitors to the UK won’t be able to reclaim VAT on items they purchase and take home with them, any non-EU visitors who purchase items in store and have them sent directly to an overseas address will be able to reclaim VAT in line with international tax principles.

This concession should also apply to online purchases, providing a retailer is set up to handle the process.

We were persuaded by a close family friend to invest in her company using our credit cards. Even before the pandemic, the company was not generating any money, so we let her use our credit cards and she maxed out all of them. Banks are now chasing us for payment.

This has been a burden on us for years now as we are trying to pay off the debt that she put us into. Is there any other way out of this? I am still hoping there is something we could do to stop it being a serious problem as I have been without a job for five months and only my wife is working. DC, Dubai

When someone takes out a credit card, it is for their own use and they are not permitted to give the cards to a third party, including their spouse.

It is contrary to the legal terms and conditions of any card to hand it over to someone else for their use and the signing of this paperwork when applying for a card is taken as agreement to the specified terms.

While the precise wording will vary between the providers of credit cards, they will all include a phrase along the lines of “the usage of the card is restricted to the cardholder and for their personal use”. It will also state something similar to “the cardholder shall not allow any third party to use the card for any purpose”.

This means that DC and his wife have broken the terms of the agreement with the bank and if they find out, it is within their rights to cancel the card and demand immediate repayment of the outstanding balance.

The cardholder is solely responsible for all repayments, no matter if he or she has permitted someone else to use the cards.

It is my understanding that there is no written agreement in place between DC and the friend regarding money borrowed, so he will be unable to pursue a civil case against her. Clearly, DC needs to ask this woman to repay what she owes but he will be unable to force her.

If payments are not maintained on the credit cards, the banks will take action and once a person has missed three payments, they will usually register a police case and possibly apply for a travel ban, too. If there is no way of paying what is owed, DC may want to consider applying for insolvency if he qualifies.

To apply for insolvency, a person needs to owe Dh250,000 or more and be at least 65 days behind on repayments. If this is an option, it stops any further action but has consequences and money still needs to be repaid, often by liquidating other assets and possessions.

The first step should be to contact the banks to whom money is owed and to try to restructure the debts to reduce the repayments. It is always best to contact the banks before they start any action as this shows a willingness to repay money, which should assist with negotiations.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 25 years’ experience. Contact her at [email protected] . Follow her on Twitter at @FinancialUAE

The advice provided in our columns does not constitute legal advice and is provided for information only

On The Money

Make money work for you with news, features and expert analysis

• All experiences
• Food & Wine
• Cooking classes
• Amalfi Coast
• Food & Wine
• Local Suggestions

Tax Free Refund Guide

According to the Italian law, non-EU resident travellers may be granted VAT relief/refund for goods intended for personal or family use purchased in Italy. This relief is surely an advantage for the foreign travellers : in fact, it allows to save from a minimum of 4% up to a maximum of 22% of the selling price of the goods purchased. Here is a short guide according to the Italian legislation to discover the common system of value-added tax exclusively for non-EU resident travellers .

• VAT (in Italian: IVA) is a value-added tax on goods and services and is part of the European Union’s value-added tax system.
• In some cases, travellers may be granted a VAT refund . This refund does not cover the services supplied by hotels, restaurants, taxis or agencies.
• You may be eligible for a VAT refund provided that:
• you are a non – EU resident ;
• the goods purchased are intended for personal or family use only and are carried in your luggage;
• the overall value of the goods purchased exceeds 154,94 Euro (VAT included);
• the purchase is certified by an invoice . This invoice should include a description of the goods purchased, your personal information as well as the details of your passport or any other equivalent document;
• the goods shall leave the EU territory by the third month following the date of issue of the invoice, as proved by the “ customs stamp ”;
• from 1 September 2018, tax-free invoices in Italy must be electronically transmitted by the national seller to OTELLO information system ( O nline T ax Refund at E xit: L ight L ane O ptimization) and their validation is digitally carried out. • after the digital “customs stamp” is obtained, OTELLO will send a message to the retailer that all the requirements are met and, as a consequence, the retailer will reimburse the amount due or will settle the tax relief. • the invoice is returned to the Italian retailer within four months after the purchase was made. If the invoice is stamped by other EU countries, it needs to be brought to the shop retailer by the fourth month following that of the purchase.
• The goods purchased and the relevant invoice must be shown at the customs exit point when leaving EU territory (if you intend to pack the purchased items into your check-in luggage, you must go to Customs BEFORE checking in ).
• After leaving EU territory, the traveller must return the original invoice , regularly endorsed by the customs office, to the Italian retailer. Said invoice must be returned within four months from the date when the document was issued.
• The refund can be made directly by the Italian retailer (however, make sure that the shop you’ve chosen displays a “Tax-Free Shopping” or “Euro Tax-Free” sign in its window).
• Several Tax-Free companies are able to offer immediate VAT cash refunds when the goods leave either Italian or EU territory (thus exonerating the passenger from having to return the invoice to the retailer). However, this procedure only applies at major international airports or main border crossings. Most major department stores have Tax Free Refund offices .
• The services provided by Tax-Free companies imply the payment of a small administrative sum which is directly deducted from the amount of VAT refunded to the traveller.
• In the event of a traveller not receiving a VAT refund within a reasonable period of time, he or she should re-contact the Italian retailer or one of the aforementioned companies.
• However, please note, VAT cannot be refunded directly by customs offices.

Source: www.adm.gov.it

RELATED ARTICLES MORE FROM AUTHOR

World heritage sites in italy: intangible heritages, unesco sites in italy: a journey into beauty, tips for sales in italy.

• milan.welcomemagazine.it
• venice.welcomemagazine.it
• florence.welcomemagazine.it
• turin.welcomemagazine.it
• verona.welcomemagazine.it
• welcomemagazine.it
• welcometomilano.it
• welcometoitalia.com
• welcomesmartnetwork.it
• proedieditore.it
• museomilano.org
• milanolovesyou.com
• Cookie Policy
• Terms and Conditions

Website powered by Proedi Comunicazione srl © Via Ezio Biondi, 1. 20154. Milano P.I. 07749100157 – www.proedi.it REG. Trib. Milano no. 453, 19 July 2010, iscritto al roc no. 2455. Direttore responsabile: Andrea Jarach

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

Tax Day is April 15. Find fast, hassle-free tax filing right here. It's just $50 — no hidden costs or fees.

Tax Day is April 15. Find fast, hassle-free tax filing right here for just $50.

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

Value-Added Tax (VAT): What It Is, Who Pays

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

If you’ve ever traveled outside the United States and done some shopping, chances are you’ve noticed a VAT, or value-added tax, on your receipts. Here’s what VAT is, how it works, and how you might be able to get your money back.

What is value-added tax (VAT)?

A value-added tax, or VAT, is a tax on products or services when sellers add value to them. In some countries, VAT is called goods and services tax, or GST. Similar to a sales tax or excise tax, consumers pay the VAT tax, which is typically a percentage of the sale price. There is no VAT in the United States.

Simple tax filing with a $50 flat fee for every scenario

With NerdWallet Taxes powered by Column Tax, registered NerdWallet members pay one fee, regardless of your tax situation. Plus, you'll get free support from tax experts. Sign up for access today.

for a NerdWallet account

Transparent pricing

Maximum refund guaranteed

Faster filing

*guaranteed by Column Tax

How value-added tax (VAT) works

Value-added tax is typically a percentage of the sale price. For example, if you purchase a pair of shoes for $100, and the value-added tax rate is 20%, you would pay $20 in VAT at the register when you pay for the shoes.

The value-added tax rate varies by country.

Some countries exclude certain goods or services from the tax.

The European Union requires that an EU country’s VAT rate must be at least 15%. Some things qualify for a reduced rate, which has to be at least 5%. [0] European Taxation: Taxation and Customs Union . VAT rates . Accessed May 17, 2023. View all sources

Although businesses may pay value-added tax on the goods and services they buy, they generally get to recoup those payments from the VAT they collect from their customers. The businesses then remit what’s left to the government.

Is there VAT in the U.S.?

There is no VAT in the United States. But even though the United States doesn’t have a value-added tax, it does require consumers to pay federal excise taxes on the purchase of gasoline, alcohol, tobacco and other products. In addition, several states and cities collect sales taxes. Intuitively, the concepts are similar in that they are all taxes on consumption. The difference is in how the tax is collected. Over 100 countries have a VAT.

» MORE: See how to deduct sales tax on your income tax return

How to get a VAT refund

If you visit a country that has a VAT, you might be able to get a refund on the tax you pay when you shop there. Beware: There are a lot of steps, and some travelers decide the refund process isn’t worth the trouble. Here are some of the general rules, but before you travel, be sure to check the VAT rules in the country you plan to visit.

Typically, you have to pay the value-added tax at the time of purchase, and then apply for a refund from the shop.

Usually, your purchase must be over a certain amount in order to qualify for a VAT refund. In the EU, for example, you have to buy at least 175 euros worth of stuff in a shop. [0] European Commission: Taxation and Customs Union . Guide to VAT refund for visitors to the EU . Accessed May 17, 2023. View all sources The threshold isn’t cumulative, meaning that spending 100 euros in one shop and 100 euros in another shop doesn’t meet the minimum. It may be worth it to consolidate your shopping if you’re angling for a VAT refund.

Spending on food and hotels often isn’t eligible for VAT refunds.

You usually have to be a visitor to get a VAT refund. The address on your passport matters here. You might qualify as a visitor if you’re living in the country temporarily but have a permanent home somewhere else.

You’ll likely need to show the store clerk proof that you live outside the country, and you’ll have to fill out a form.

Some shops don’t offer VAT refunds. Some shops process the refund directly, and some shops use third parties to process the refund. Ask for written instructions about how to claim your VAT refund.

Sometimes the shop charges a fee for VAT refunds, so be sure to ask about that ahead of time.

Usually you’ll need to mail your stamped VAT refund form to an address the shop provides. But you don’t always have to wait to get back home. Some big airports, ports and train stations have VAT refund offices where you can get your refund right away — if the retailer you shopped at uses that office.

When you go home with your stuff, a customs officer has to stamp your refund paperwork as proof of export. Without the stamp, you won’t get your VAT refund.

On a similar note...

• Northern Ireland
• Southern England
• Northern England
• Other Regions
• Shopping Guides
• Restaurant Guides
• Historic Attractions
• Theme Parks/Adventure
• World Heritage Sites
• Top UK Attractions
• UK National Parks
• England Airports
• Scotland Airports
• Wales Airports
• Northern Ireland Airports
• UK Airport Hotels
• North America
• Travellers Tips
• UK Travel Tips & Advice
• Articles & Inspirations
• Holiday Packages
• Hotel Reservations
• Travel Tools
• UK Holidays
• Travel Articles
• UK Travel Tips
• Tips for Travellers
• Currency Conversion
• Travel Money Tips
• Money Travel Tips
• Travel Offers

VAT Refunds for UK Visitors

Related articles, uk travellers faq, visiting the uk entry requirements, uk money & currency travellers tips.

• Website Terms
• Site Disclaimer
• Privacy Policy

National Internal Revenue Code of 1997

Tax Code App

Tax Calendar and App

100 years of trusted service

Corporate Sustainability Report

Scholarships

Loading Results

No Match Found

VAT refund for tourists

Marion Castañeda Tax Senior Manager, PwC Philippines 28 Jun 2023

After the Director-General of the World Health Organization declared an end to COVID-19 as a global health emergency, many of us grew eager to return to life as we knew it before COVID-19. Tourism was one of the hardest-hit industries during the height of the COVID-19 pandemic due to the mobility and international travel restrictions that were aimed at reducing the spread of the virus. Now, although many of us remain cautious and continue to wear face masks despite the lifting of most mask mandates, “revenge travel” — to make up for lost time — is a high personal priority for many.

While there are broader factors that will boost tourism (airport capacity and infrastructure, to name two), one proposal aims to improve our attractiveness as a travel destination from a tax perspective. Under House Bill (HB) No. 7292, non-resident tourists would be allowed to obtain a value-added tax (VAT) refund on their purchases of goods worth at least P3,000. The bill was approved by the House of Representatives on third and final reading, and the President himself has signaled his backing for the proposal in principle.

INTERNATIONAL PERSPECTIVE The concept of recouping VAT or similar consumption taxes on foreign tourists’ purchases is not new. In fact, according to the House Ways and Means Committee Chairman, we are one of the last few Asian destinations that do not have a tourist VAT refund system. To better understand this proposal, let’s take a brief look at some of our neighbors.

In Indonesia, Malaysia, Singapore, Thailand, and Vietnam, the general procedures can be outlined as follows: 1) obtain and keep the tax invoices for eligible purchases; 2) show travel documents together with the invoices and the goods purchased (and not consumed) to the refund counter at the airport; and 3) claim the tax refund, most commonly in cash (local currency). Naturally, each jurisdiction has its own set of procedures and rules regarding controls (some have specific “tax-free” shops), purchase or tax amount thresholds, the number of days between when the purchase was made and when the refund is claimed, and even the actual refund mechanism (some allow refunds via credit card reverse charge). Nevertheless, the overarching procedures appear quite similar.

Outside of ASEAN, Taiwan seems to have similar procedures as outlined above, albeit with an option to use an “E-VAT Refund Machine” instead of proceeding to a refund counter. Interestingly, Japan has a drastically different approach: either a) pay for the purchase with consumption tax already deducted upon presentation of a passport, or b) obtain a refund by visiting the designated tax exemption bulk deduction counter (in-store, not at the airport) and presenting the purchased goods, receipt, and passport.

CURRENT PHILIPPINE VAT RULES The purchase of goods within the Philippines is generally subject to 12% VAT. As an indirect tax, VAT is passed on to and shouldered by the buyer. As a tax on the “value added,” the ultimate consumer or end-user primarily bears the cost of VAT. This burden is especially felt by individual buyers, who are typically not VAT-registered and do not have the benefit of claiming input VAT credits on their purchases.

The proposal for VAT refunds on tourist purchases would add Section 112-A to the Tax Code, the salient portions of which read as follows:

“SEC. 112-A. TOURIST VAT REFUND. — A tourist shall be eligible for a value-added tax (VAT) refund on goods purchased from accredited retailers in the Philippines if such goods are taken out of the country within sixty (60) days from the date of purchase, and the value of goods purchased per transaction amounts to at least three thousand pesos (P3,000.00) …

For purposes of this section, a ‘tourist’ shall refer to a foreign passport holder, who is a non-resident individual not engaged in trade or business in the Philippines.”

The proposal seems simple enough. Tourists who are foreign nationals and not residents of the Philippines can refund the 12% VAT imposed on goods that they purchase within 60 days before they leave the country. The bill authorizes the Secretary of Finance to promulgate the rules and regulations for the law’s implementation. It appears that the legislators prefer giving leeway to the executive branch as to the exact mechanics of the VAT refund process.

POINTS FOR CONSIDERATION According to the Presidential Communication Office, the VAT refund program for foreign tourists is targeted for implementation by 2024 and is billed as an effort to boost tourist arrivals. The counterpart Senate bill still faces hearings at the Senate Committee on Ways and Means at this writing. Nevertheless, here are a few salient points to consider about the pending measure:

1) Administration: With the ultimate goal of boosting tourist spending in mind (thus helping retailers generate more sales and growing our economy), the government should ensure that rules or requirements are simple to comply with for retailers.

2) Convenience: From the foreign tourists’ perspective, a tedious process for obtaining a VAT refund will discourage them from applying in the first place, in turn discouraging them from spending. It bears highlighting that, at 12%, we have the highest VAT rate in ASEAN.

3) Safeguards : As a refund program, this measure will likely entail funds to be programmed into the government’s annual budget. As with any government-funded measure, policies for transparency and governance must be strictly enforced.

As we welcome foreign visitors, we can, in addition to showing them a great time at our beaches and other destinations, perhaps they will also buy more “pasalubong” for their loved ones back home — VAT-free, if this proposal becomes law.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

This article was originally published in BusinessWorld.

Related Content

Insights & issues, japanese business development, client accounting services.

Marion Castañeda

Tax Senior Manager, PwC Philippines

Tel: +63 (2) 8845 2728

Lyn Golez-Geronan

Tax Librarian, PwC Philippines

© 2010 - 2024 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for details.

• Transparency notice
• Cookie information
• Legal disclaimer
• About site provider

• Skip to navigation
• Skip to main content

Popular searches

Your previous searches.

• Integrated Cargo System (ICS)

Tourist Refund Scheme (TRS)

Need a hand.

General information on VAT refunds for travellers

Find out when you are entitled to a VAT refund on purchases made in Spain, how to obtain it.

Can a tourist residing outside the European Union who has made purchases in Spain recover the VAT paid for said purchases?

Yes, as long as you reside in a country that does not belong to the European Union, or are resident in the Canary Islands, or in the Autonomous Cities of Ceuta and Melilla, and also meet the following requirements:

• The tourist who proves his identity and residence outside the European Union at the time of purchase.
• The purchases are documented on an invoice and on an electronic refund document (DER) sent to the Tax Agency.
• The purchases must have been made on the Spanish mainland or in the Balearic Islands, excluding purchases made in the Canary Islands or in the cities of Ceuta and Melilla.
• The goods must not constitute a commercial shipment, i.e. they must have been acquired on an occasional basis and intended for the traveller’s personal use or that of their family members or offered as gifts and which, by their nature and quantity, cannot be presumed to be the object of a commercial activity.
• The goods purchased must actually leave the territory of the European Community within three months of the date of supply.

Likewise, deliveries of goods intended for the equipment or provisioning of any means of transport for private use are excluded from this regime (e.g. Tires and fuel).

How can you recover the VAT paid in Spain for purchases made by a non-resident traveler in the European Union?

For the refund of VAT fees borne by non-resident travelers in the territory of the European Union, these must have previously been passed on and documented in invoices. The seller must also submit an electronic refund document (DER) to the Tax Agency.

In Spain there are two systems for the recovery of fees previously paid by non-resident travellers. These two systems are freely chosen by the traveller at any time:

• Directly through the shop. The traveller sends the electronic refund document endorsed by Customs to the supplier, who will refund the full amount charged within fifteen days by cheque, bank transfer, credit card or other means of proof of reimbursement. The period that the traveler has to send DER endorsed by Customs to the supplier is the general four-year period of prescription of the supplier's right to rectify the fees passed on. After this time, the supplier has no obligation to return the VAT .
• Through Collaborating Entities authorized by the AEAT . In this case, travellers shall present the electronic refund documents endorsed by Customs to these entities, which shall pay the input VAT on the acquisition of the goods minus the corresponding authorised commission. The traveller must agree to such a return. Subsequently, the Collaborating Entities will send the electronic refund documents endorsed by Customs to the suppliers who will make the corresponding reimbursement, in this case in full.

The reimbursement of VAT to travellers by the Collaborating Entity shall be made by cash, credit card, cheque or bank transfer.

For the purposes of refunding VAT under the traveler regime, how is habitual residence proven?

Travellers must have their usual place of residence outside the territory of the European Union. With regard to evidentiary documents, there is freedom of proof. Habitual residence outside the European Union may be proven by any means of proof admitted by law. It is the traveler who must prove by any legally valid means of proof that he is actually a resident outside the European Union. As an example, you can provide a passport, an identity document, a certificate of registration in another country, a certificate of registration in the Consular Registration Registry of Spaniards residing abroad, Green Card  or any other resident card from a state outside the European Union.

Citizens of the European Union (i.e. nationals of a Member State holding a passport from that Member State) who reside permanently in a non-member country of the Union may also benefit from the Article 21 exemption. 2 of the VAT Law and can request a refund of the tax. This is also the case of Spanish diplomatic and consular personnel residing in countries not belonging to the European Union.

The seller will always verify the traveler's identity and residence outside the European Union at the time of sale. This obligation must be materially fulfilled by the seller in all cases and at the time and place in which the purchase is made.

At this point, it is worth mentioning Sentence number 1687/2022 of the Supreme Court, Contentious-Administrative Chamber, Second Section. The Court considers that: “(…) to prove the habitual residence of the purchaser, for the purposes of applying the exemption for export of goods under the traveler regime provided for in article 147.7 of Directive 2006/112/ EC of the Council, of November 28, 2006 and 21.2.A of Law 37/1992, on Value Added Tax, the provision of the passport is not enough, as contemplated in article 9.2.Bb) of Royal Decree 1624/ 1992, of December 29, which approves the Value Added Tax Regulation, when it does not indicate the habitual residence or domicile of the recipient of the deliveries of goods, it being necessary in this case, additionally, to present other means of proof that prove the habitual residence of the traveler. In any case, it is up to the seller or supplier of the goods, subject to VAT, to verify whether the document presented by the traveler to be able to enjoy the exemption contains information on the traveler's habitual residence or domicile, and may, where appropriate, be said document, the passport, the identity document or any other means of proof admitted by law. "

The requirements demanded by the Value Added Tax regulations to be able to enjoy this tax benefit must be met at the time of its accrual (moment of making the goods available to travelers), so the habitual residence was of the European Union must be a fact at that time.

For the purposes of the refund of VAT under the traveler regime, what is meant by "that the goods purchased do not constitute a commercial shipment"?

To the effects of this law, goods carried by travellers will not be considered a commercial shipment as long as they are an occasional purchase, for the traveller’s personal use, that of their family, or to be offered as gifts, or as long as their nature and number does not lead to conclude they are aimed at a commercial activity..

The rule does not determine any quantitative threshold above which goods are considered to constitute commercial dispatch. It will therefore have to be analysed on a case-by-case basis.

In what payment method will the refund of the borne VAT contributions be made effective in the traveler regime?

If the traveller chooses to obtain reimbursement directly from the supplier, the supplier shall reimburse the full amount charged within fifteen days by cheque, bank transfer, credit card or other means of proof of reimbursement.

If the traveler opts for the refund of the VAT installments through a Collaborating Entity authorized by the Tax Agency, the VAT refund to travelers will be made in cash, card credit, check or bank transfer. When the refund is made in cash, it shall necessarily be made in euros.

What type of goods can benefit from the refund of VAT under the traveler regime?

The mechanism provided for the refund of the Value Added Tax to travelers must be understood as directed to the goods acquired by them and that are going to be transported “in the personal luggage” of the travelers, and therefore not applicable to other cases of goods. that are subject to transport to a third territory outside the personal luggage of travelers. Likewise, goods intended for equipment are excluded from the exemption from VAT (example: tyres, fuel) or refuelling of any means of transport for private use.

Only goods purchased which actually leave the territory of the European Union are eligible for reimbursement. Therefore, the exemption does not apply to services of any type (accommodation, car rental, restaurants...) nor to goods that are consumed totally or partially in the territory of the Union (drinks, chocolates, perfumes).

It is important to keep in mind that the approval of the electronic reimbursement document (DER) is carried out or not in its entirety, in such a way that, if only some of the goods included in a DER come out Indeed, the condition of effective departure of all goods is not met and, consequently, it will not be validated.

If goods are acquired which can be consumed, in order to benefit from the exemption and be eligible for a refund of input VAT, these goods must leave the territory of the European Union in the same state as when they were acquired.

The VAT exemption for the supply of goods under the traveller's system excludes the supply of goods for the purpose of equipment (example: tyres, fuel) or refuelling of any means of transport for private use.

Which document does the seller have to provide to the traveller to be stamped at the exit customs?

The seller must issue the corresponding invoice and also an electronic reimbursement document (DER), both at the time of purchase. The DER is available at the electronic headquarters of the State Tax Administration Agency, in which the acquired goods and, separately, the corresponding tax will be recorded.

The following traveler information must be entered in the electronic reimbursement document: identity, country of residence, date of birth and passport number of the traveler.

The collaborating entity or the selling store must check the visa of DER , as a prerequisite for making the refund. It must also inform the Tax Agency that the refund has been made.

The copy of the form delivered ( DER ) to travelers will have a CSV (secure verification code) with which the traveler will always be able to know the processing status of their request for the return of VAT , at all times. By consulting the procedures on this page.

It is important to keep in mind that the DER provided to the traveler must contain a barcode or a QR code for subsequent reading at the time of sealing, (the copy of the screen of the computer with which the form is issued to the Tax Agency).

What is the maximum time the traveller has to leave the European Union from the time of purchase?

It is a condition for the refund of input VAT on purchases of goods by non-resident travellers in the territory of the European Union that the goods actually leave the territory of the Union within a maximum period of three months following the purchase. VAT Directive 2006/112/ EC states more clearly that goods must be transported "outside the Community before the end of the third month following that in which the delivery is made" .

• Deadline: 5 May (confirmed by date of invoice)
• Effective date of departure: Before 31 August.

Spanish invoicing regulations allow entrepreneurs and professionals to issue summary invoices. Thus, different operations carried out on different dates for the same recipient may be included in a single invoice, as long as they were carried out within the same calendar month.

Where the sale of the goods being exported corresponds to a summary invoice, the three-month period shall run from the date of the latter document.

What is the maximum time to request a refund of VAT SUPPORTED once the proof of departure has been stamped?

The traveler may request a refund of the VAT incurred on their purchases in Spain, provided that they meet all the legally required requirements and that the electronic refund document (DER), which proves their purchase, is correctly endorsed by the customs office of departure.

The maximum period for requesting a refund is the general four-year limitation period, coinciding with the period of the supplier's right to rectification of the charged amounts. After this time the supplier is not obliged to refund the VAT.

The Traveller Tax Refund: Are You Leaving Money Behind When You Travel?

18 comments

Welcome! If you're new here, you may want to subscribe to my RSS feed . Meanwhile, be sure to download the Freedom Seeker's Passport , designed to help you transfor from Freedom Seeker to Digital CEO! Thanks for visiting! This post may contain affiliate links. For more information, visit my Affiliate Disclosure page

Hey, I know you! Welcome back! I hope you're enjoying the Freedom Seeker's Passport I sent you. If you missed it, grab your free download now. Are you struggling to create the Freedom Lifestyle you've been dreaming about? Click here to learn how we can work together to help get you where YOU want to be! This post may contain affiliate links. For more information, visit my Affiliate Disclosure page

Most people cite budget as one of the greatest determining factors on whether or not they travel, where they go, and how often they get away.  Did you know that many of these same people are leaving a significant amount of their money behind without even knowing it?  The Traveller Tax Refund, also known as Value Added Tax (VAT) Refund, is a benefit that is often misunderstood even by seasoned travellers.

If you’ve never heard of this benefit before, or if you thought the process was too difficult to bother with, I’m about to open a whole new world for you!

Get the Traveller's HandbookToday!

Your ultimate guide to smarter, easier travel ... FREE It's time to start checking off that bucketlist!

Success!! Check your email, and let's start checking off that bucketlist!

18 comments.

This is awesome! I’ve bookmarked this for the future! Thank you for putting this together…it’s really helpful!

So glad you found some value here RJ! Thanks for dropping by

This is a good idea to look into. Thanks for the detailed explanation,

You’re very welcome Stacey. Make sure you check it out before your next trip

Never knew that Taiwan participated in this program. Will come into handy for my upcoming Taipei trip!

Fantastic! I hope it saves you a lot Virginia!

That would be awesome, wouldn’t it! 🙂

Bruce, thank you for sharing this awesome post, I’ve heard about the traveller’s tax refund, but never really bothered,…because, basically it sounded like a major mission. But, after reading your post, I might just give it a try on my next trip!

I find that’s what deters most people from using these programs, but it actually is pretty easy 🙂

Getting a tax refund is something that a lot of people probably don’t bother with but is a great way to save money. Too bad they can’t just no charge tourists at the till though.

That’s very true, and i’d hope that may be an offer in the future!

I know that in Thailand there is also a VAT refund for tourists scheme, however it’s only 8%. The 20% VAT refund in the UK is a huge saving for tourists!

Thanks for posting that Chris! Always a good idea to make sure our offers are legit

Just try to wipe that smile off your face Iza! 🙂

It’s great and detailed explanation about getting a tax refund. I just did it once recently and was very upset about long line in Tel Aviv airport. It took more than an hour and I was afraid to miss my flight.

Wow! Thanks for posting about that experience Anita … we expected something similar in Amsterdam, but were relieved that there was no line

Submit a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Pop in your info to receive even more ways to create an online income that travels with you!

SUCCESS! Thanks for subscribing!

Latest on instagram, bruceschinkel.

Blogger's JumpStart

The Essential FREE Guide to get your blog online quickly and securely, so you can grow your business TODAY!

Check for a confirmation email from me! Once you confirm it was you who submitted this form I'll immediately send you your Blogging JumpStart Guide!

Gift Guide for Smart Travelers

The FREE Gift Guide for Smarrt Travelers to help you find the perfect gift for your special someone TODAY!

Check for a confirmation email from me! Once you confirm it was you who submitted this form I'll immediately send you your Gift Guide for Smart Travelers!

Google Analytics Dashboard Templates

Get these FREE Dashboard Templates to help you set up your Google Analytics reporting TODAY!

Check for a confirmation email from me! Once you confirm it was you who submitted this form I'll immediately send you your Google Analytics Dashboard Templates!

Google Analytics Campaign Tracker

Get these FREE Campaign TRacker to help you keep

track of all your campaigns TODAY!

Check for a confirmation email from me! Once you confirm it was you who submitted this form I'll immediately send you your Google Analytics Campaign Tracker!

Unique Gift Ideas forHome Business Entrepreneurs

The FREE Gift Guide for Home Business Entrepreneurs to help you find the perfect gift for your special someone TODAY!

Check for a confirmation email from me! Once you confirm it was you who submitted this form I'll immediately send you your Gift Guide for Home Business Entrepreneurs!

Google analytics setup guide.

Get this FREE Setup Guide to put your

Google Analytics account to work for you TODAY!

Check for a confirmation email from me! Once you confirm it was you who submitted this form I'll immediately send you your Google Analytics Setup Guide!

Google analytics goal setting guide.

Get this FREE Goal Setting Guide to find the

True Value in your website TODAY!

Check for a confirmation email from me! Once you confirm it was you who submitted this form I'll immediately send you your Google Analytics Goal Setting Guide!

Pin it on pinterest.

• ASEAN Forum
• Digital Agenda
• E-Invoicing
• Alle Kolumnen
• Altersvorsorge
• Antitrust Law
• Artikelserie im OMV Fokus
• Assurance & IT in der Gesundheits- und Sozialwirtschaft
• Aufsichtsrecht
• Außenwirtschaft und Zoll
• BilRUG und weitere Reformen
• International Expert Roundtable

  Insights

Comprehensive VAT Guide­lines for key international markets »

Helge Masannek

Send inquiry

  How we can help

VAT Services

• Legal notice
• EU representative for data privacy

• Buenos Aires
• Kuala Lumpur
• Los Angeles
• New York City
• International Health Insurance
• Investment Advice for Expats
• Booking Travel for Expatriates
• Expat Moving Services
• Property Rental
• Country Visa Services for Expats
• Online Global Health Insurance Quote
• Citizenship by Investment (Golden Visas)
• Foreign Exchange for Expatriates
• Expat Mobile App
• Expat’s Manual
• Expat Forums
• Business Directory
• Blog articles
• Forum topics
• News articles

Our guide was written by Tom Rogers and Rebekah Smith .

Overall taxation in Russia may seem high or low to you, depending on your home country.

The two most noticeable taxes in Russia, for private individuals, are income tax and VAT.

Russian income tax is a flat 13% for those with tax residency in Russia (defined as spending 183 days or more in a calendar year). Expatriates who spend less than 183 days per calendar year in Russia must pay 30% income tax on any income from sources in Russia.

Standard VAT is 18%; while food, magazines, and other items may be taxed at 10%. VAT is included in the labeled price.

There are also extensive social taxes for healthcare and pensions; however, the bulk of these is paid by the employer (not the employee).

Useful links

• http://www.101.ru A popular online Russian radio station.
• http://www.masterRussian.com Site where you can master Russian grammar, learn new vocabulary and practice speaking and reading Russian.
• http://www.translit.ru A transliteration site – type in Roman letters and they are automatically converted to Cyrillic.

Interesting fact

Whilst all reasonable care has been taken in the preparation of this publication, the owner of Expatinfodesk.com does not accept any responsibility for any loss suffered by any person acting or refraining from action as a result of relying upon its contents.

Privacy Overview

Would you like to know more about international health insurance & get a free global health insurance quote? Choose a custom global medical plan which meets your needs and budget

GET A FREE QUOTE

• United Arab Emirates
• Switzerland
• The Netherlands
• Puerto Rico
• United States
• New Zealand
• ➨ Choose from World Map
• Budget Travel
• Family Travel
• Getting Around
• Visas & Passports
• Work with Us

Browsing Category

• Czech Republic
• Saint Martin
• Uncategorized

Moscow Travel Guide: Best Things to Do + More [2023]

· everything to know about visiting moscow, including the best things to do and how to get around. ·.

Moscow is Russia’s vibrant capital city, and it also happens to be the largest city in all of Europe. The city’s long and infamous history makes it one of the most unique places we have ever visited.

The architecture ranges from centuries-old palaces to uniform, gray concrete buildings. The people range from cold and private to warm and welcoming. Moscow is a city is strong juxtapositions, and we learned a lot during our time there.

This post will break down all you need to know about visiting Moscow, including the best things to do, how to get there, how to get around, and more.

The Best Things to Do in Moscow

1. explore the red square.

The Red Square is the heart of Moscow. Most of the city’s top attractions can be found here, including just about everything on this list. The Kremlin, St. Basil’s Cathedral, and Lenin’s Mausoleum are all located here, and the State Historical Museum and GUM are not far from here, either.

The Red Square is a common home for parades, protests, and seasonal celebrations. There are massive Christmas celebrations here, with food vendors and carnival rides set up in numbers.

2. Check Out the Ziferblat

The Ziferblat is a café in Moscow that is unlike any café we have ever been to. While most cafes charge you for your drinks and food, the Ziferblat charges you for your time.

Upon arrival, you are given a clock. When you leave, the barista calculates how much time you spent in the café and charges you accordingly. This concept was created to help visitors to be more intentional with their time, and the cafe itself is incredibly charming.

For a detailed look at everything you need to know before you visit, make sure you read my post about visiting the Ziferblat Cafe in Moscow .

3. Marvel at St. Basil’s Cathedral

St. Basil’s Cathedral is one of the most iconic churches in the world, and it was the single thing we were most excited to see while in Moscow. Built almost 500 years ago, St. Basil’s Cathedral is recognized by its colorful domes and whimsical style. The church is of the Russian Orthodox faith, and the inside is just as wondrous as the outside.

St. Basil’s Cathedral is located on the edge of the Red Square, making it incredibly convenient to visit. Entrance for non-worshippers costs 800 rubles, and tickets can be bought at the church

4. Explore the Kremlin

The Kremlin is the largest active fortress in Europe, and it is the site of most of Russia’s government affairs. In addition to government buildings, the Kremlin Complex is filled with courtyards, towers, and museums that are open to the public. If you have the time, you could spend a couple of days fully exploring all that there is to see in the Kremlin.

5. Walk Through Lenin’s Mausoleum

Vladimir Lenin is one of the most important figures in Russian history, and his body is located perfectly embalmed in a mausoleum in the Red Square. The Mausoleum is open to the public to visit, and as long as you are willing to go through a few security checks, it is easily one of the best things to do in Moscow. Its convenient location in the Red Square makes it a can’t miss attraction.

There is absolutely no photography allowed inside the Mausoleum. Do not test this rule.

6. Wander Along Arbat Street

The Arbat is a very popular street in Moscow that is lined with stores, cafes, and other touristy attractions. It is one of the oldest streets in the city, dating back to the 1400s. This street is both quaint and trendy, and there are many walking tours that introduce tourists to the neighborhood’s wonders and highlights.

7. Catch a Show at the Bolshoi Theatre

As a lover of the arts, it is hard to think of Moscow and not think of ballet. Russia has always been a top dog in the world of fine arts, and Bolshoi Theater is one of the best places to catch a performance. We were lucky enough to attend an Opera here, and it is a venue that you don’t want to miss out on if you enjoy opera, ballet, or orchestral performances.

8. Visit the State Historical Museum

The State Historical Museum is one of the most respected museums in Moscow. Despite its name, it is not really focused on the history of Russia as a nation. Rather, it contains a collection of artifacts from all throughout Russia’s history.

The museum’s collection is very broad in nature. It houses some items from indigenous tribes that used to occupy the region, pieces collected by the Romanov family, and more.

9. Wander Around GUM

GUM is an absolutely massive mall within walking distance of the Red Square. It isn’t just the size that draws visitors here; it’s the sense of luxury. The mall is so beautiful inside, much like the metro stations.

While visiting a mall might not sound like it belongs on a bucket list, this mall does. You will not want to miss out on visiting GUM while in Moscow.

10. Admire the Cathedral of Christ the Saviour

While St. Basil’s Cathedral is the most iconic church in Moscow, it isn’t the only one. The Cathedral of Christ the Saviour is absolutely stunning, with massive golden domes. It is the tallest Orthodox church in the world, and it is the seat of the Orthodox Patriarch of Moscow.

It is located just about a mile from the Red Square, just south of the Kremlin Complex. You can walk to it from the Red Square in about 20 minutes.

How to Get to Moscow

Flying to moscow.

Moscow has three major international airports: Sheremetyevo (SVO) , Domodedovo (DMO) , and Vnukovo (VKO) . All three of them are directly connected to downtown Moscow by the Aeroexpress trains, which leave every 30 minutes throughout the day. By Aeroexpress train, you can expect to get to the city center in 25-45 minutes depending on the airport that you fly into.

Sheremetyevo is the biggest and busiest of the three airports, and it is the one you are most likely to fly into – especially if you are coming from outside of Europe or the Caucus region. We flew into Sheremetyevo on a direct flight from New York City.

I usually provide backup airport options, because flying right into the city isn’t always the cheapest way to get where you’re going. Unfortunately, when it comes to Moscow, don’t really have a choice other than to fly right into Moscow. It is a very remote city, and it is usually the cheapest place to fly into in Russia as a whole.

Since Sheremetyevo is so busy, you will probably find a great flight option anyway. I wrote in  my post about finding cheap flights  that using hub airports will lead to more affordable airfare, and the same logic applies here. Even though Russia’s national airline, Aeroflot, is no longer a member of the SkyTeam Alliance, Moscow is still a major hub connecting passengers from all over the world.

READ OUR CHEAT SHEET

Train or Bus to Moscow

Trains and buses are one of the most popular ways to get around Europe. However, they’re of very little use when you’re trying to get to Moscow.

Moscow is hundreds of miles from the nearest major cities. The only major European city that can even be reached within 8 hours on the ground is St. Petersburg, and even the Baltic capitals of Riga, Vilnius, and Tallinn are over 12 hours away.

If you want to get to Moscow, the best option is almost always to fly. While the train routes to Moscow are scenic, they simply take forever.

How to Get Around Moscow

METRO | TROLLEYS | TRAMS | BUSES

Moscow has one of the most memorable metro systems in the world. Its metro lines are very deep underground, and the stations are absolutely stunning. Each station has its own unique style, but all of them contain escalators that seem to go on forever.

The system was built in an effort to showcase the power of the Soviet Union and its bright future. The plans were a form of propaganda, but they resulted in what is still one of the most visually appealing subway systems on earth.

Moscow’s metro system isn’t just pretty. It is also very useful and accessible. The system has 17 lines that connect the city and its surrounding area.

But wait; there’s more!

The Moscow metro system is also incredibly affordable, with each ride costing less than a dollar. The metro is by far the best way to get around Moscow, as it is almost impossible to beat the connection times and the low cost to ride.

Tickets can be bought at electronic, English-speaking kiosks in stations, or directly from ticket counters at certain larger stations. There are also day passes available, which are a very solid option if you plan on riding the metro several times per day.

The metro is by far the best way to get around Moscow.

In addition to the metro system, Moscow also has a network of buses, trams, and trolleys. This system is nowhere near as convenient or well-connected as the metro, though, and is likely of little use to you during your trip. There is no Uber in Moscow, but a similar app named Yandex is available if you need a ride in a pinch.

How Many Days Do You Need in Moscow?

Moscow is the biggest city in all of Europe, and it is absolutely loaded with things to do. You could spend weeks in Moscow and still find new things to do. Of course, most travelers don’t have that kind of time to spend in one place!

I recommend spending no less than three full days in Moscow, and ideally closer to five or seven.

Moscow is very spread out, and it can take some time to get from one major point to another. There are also so many places that are nice to just sit back and relax, which is hard to do when you’re in a hurry trying to cram activities into just a few days.

If you only have a week to visit Russia, I’d advise spending all of the time in one city. If you decide to split your time between Moscow and St. Petersburg, I recommend not trying to squeeze in any day trips beyond those two cities.

When Is the Best Time of the Year to Visit Moscow?

There are two different ways to approach this question. Personally, I think the best time to visit Moscow is around Christmas and New Year’s Day. While the weather will be absolutely freezing, Moscow is a surreal winter wonderland in December and January.

We were in Moscow right before Christmas. While it was very cold, you can always bundle up. Exploring the Christmas markets and pop-up ice skating rinks throughout Moscow is one of my favorite memories from anywhere I’ve traveled, and I dream of going back to do it again.

If you aren’t fond of the cold, Moscow is beautiful in the summer. It tends to get pretty cold in the shoulder seasons, so if you want warm weather, you should plan to visit in the summer. Moscow actually gets pretty warm in July and August, and there are a bunch of fantastic places to soak up the sun within the city.

The best time to visit Moscow is either around Christmas or from late May to August.

Is Moscow Safe to Visit?

While Moscow is a truly wonderful city, there’s no denying that visiting Russia comes with risks. As the country is run by an infamous communist dictator, concerns about visiting are valid. While we didn’t experience any sort of threat or negative treatment during our time in Moscow, we visited in a peaceful time.

In our experience, Russia doesn’t seem to detain normal Americans or Westerners to use as pawns. As a regular person, as long as you don’t commit any crimes, there is a slim chance you will run into any issues. However, Russia will not hesitate to enforce its laws against foreigners, and illegal behaviors will likely land you in a very compromising position.

Russia will not hesitate to enforce its laws against foreigners, and illegal behaviors will likely land you in a very compromising position.

To make matters worse, Russia has a bad reputation for gang violence. While the Russian mafia has very little interest in normal Western tourists, they won’t hesitate to pick a fight with anyone who ventures into their sphere of influence. If you seek out illegal substances or activities, you could be a target of the mafia.

If you seek out illegal substances or activities, you could be a target of the mafia.

Finally, since Russia’s invasion of Ukraine, things are all very different. Russia is currently at war, and there are battles raging within 8 hours of Moscow. While it is still relatively safe to visit, that could change at any time as the war with Ukraine continues.

Is Moscow Worth Visiting?

Without a doubt, Moscow is worth visiting. It is one of the most unique major cities we have ever visited, and we hope to make it back one day. The Russian Orthodox churches are stunning, the city’s history is unlike any other, and the food is to die for.

While many visitors prefer St. Petersburg to Moscow, I think Moscow deserves a lot of hype of its own. Moscow is the beating heart of Russian culture and history, and it’s a place I highly recommend checking out if you have the chance.

That’s all we have for you about Moscow! I hope this post was helpful as you plan your trip to Russia’s capital.

Have you been to Moscow? Or is this your first time visiting? Comment below if you have anything to add to our travel guide!

Hi, I'm Greg. I'm an avid traveler who has traveled to over 50 countries all around the world with my wife and kids. I've lived in Italy, Mexico, China, and the United States, and I dream of moving abroad again in the future. With this blog, I provide my audience with detailed destination guides to my favorite places and pro-tips to make travel as stress-free as possible.

Leave a comment

Save my name, email, and website in this browser for the next time I comment.

Meet The Author - Greg

Recent Post

How Much Does a Trip to Egypt Cost: Budget Breakdown

March 10, 2024

Best Time to Visit the India Gate in Delhi [2024]

March 1, 2024

Flying with a Sinus Infection: Tips to Avoid Pain

February 20, 2024

11 Best Things to Do in Breckenridge Besides Skiing

February 12, 2024

10 Best Beaches in Mexico for Families (We Lived Here)

February 3, 2024

Over 11,000 five-star assets

Rated by 85,000+ customers

Supported by 100,000+ forum members

Every asset moderated by Unity

MOSCOW City