Travel Tips & Trends:
VAT Tax
When shopping in Europe, you may notice something called VAT, or Value Added Tax, listed on receipts or price tags. VAT is a sales tax included in the price of most goods and services throughout the European Union (and many other European countries). While residents pay it as part of everyday life, international travelers may be eligible for a refund on qualifying purchases made during their trip.
What Is VAT?
VAT is a government tax applied at each stage of production and sale, similar to a sales tax — but unlike in the U.S., it’s already included in the displayed price. Rates vary by country, usually ranging from 17% to 25%.
As a non-EU resident, you can often reclaim this tax on goods (not services) that you are taking home with you — for example, clothing, jewelry, or souvenirs. Meals, hotels, and entertainment are generally not refundable, as they’re considered consumed in the country of purchase.
How to Qualify for a VAT Refund
To be eligible, you must:
-
Spend the minimum required amount in one store on the same day (the threshold varies by country, typically €30–€175).
-
Shop at participating retailers — look for “Tax Free Shopping” signs or ask before purchasing.
-
Request a VAT refund form (sometimes called a “Tax Free Form”) from the retailer at checkout. You’ll need to provide your passport to confirm non-EU residency.
How to Claim Your Refund
-
Before leaving Europe, present your purchased items, receipts, and completed VAT forms at the customs desk in the airport, cruise port, or border crossing.
-
Get your forms stamped by customs — this step is mandatory for your refund to be processed.
-
Submit the stamped forms to the VAT refund agency (such as Global Blue, Planet, or Premier Tax Free) at the airport kiosk, or mail them in if instructed.
-
Refunds can be issued on the spot (in cash), or later to your credit card or bank account, depending on the provider.
A Few Helpful Tips
-
Allow extra time at the airport — VAT refund lines can be long, especially in major hubs like Paris or Rome.
-
Keep your purchased items in your carry-on or easily accessible luggage in case customs officers need to inspect them.
-
Refunds apply only to unused goods that you’re taking out of the EU.
-
Each country has slightly different rules, so double-check local requirements before shopping.
​
VAT is a built-in sales tax on most European purchases — but as a visitor, you can often get part of it back with a little advance planning. Save your receipts, ask for tax-free forms, and follow the refund steps before you fly home. With a bit of organization, you can enjoy your shopping and get some money back from your European adventure!