Whether you’re planning to splurge on a purse in Milan or stock up on skincare in a Parisian pharmacy, shopping is often a highlight of a trip to Europe—especially with the handy VAT refund. Travelers have become as strategic with the VAT refund as with a sought-after sample sale. And for good reason: While sales tax in the US averages around 7.5%, in Europe it’s a staggering 22%. Wait—don’t get sticker shock just yet! Travelers can shop tax-free in all 27 European Union (EU) member states, but with a few catches.
Thanks to the VAT refund program, you can recoup some of your money on the spot or at the airport before flying home. The first catch is that there’s a minimum spend everywhere except Spain. (Due to Brexit, the United Kingdom doesn’t qualify—Northern Ireland, however, does.) The second is that you have to claim your refund before leaving the EU. Now that the basics are out of the way, here’s everything you need to know to navigate the VAT refund and earn cash back on your next shopping spree in Europe.
This article has been updated since its original publish date.
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What is VAT?
Unlike the United States, where tax is tacked on top of an item’s retail price, in Europe, Value Added Tax (VAT) is already factored into the price tag. That means you won’t pay an additional percentage when checking out. VAT varies from country to country in the EU—typically falling between 17% and 27%—and international travelers can claim the VAT back on items they’re bringing back home.
Who can get a VAT refund?
Anyone who is a non-EU resident (including citizens with a permanent address outside of the EU) can claim a VAT refund on purchases made in Europe. When you’re departing, you’ll need to show customs the stamped VAT refund documents, the physical goods in your personal luggage (to show you’re taking the items out of Europe), and prove that you’re a non-EU resident with your passport or residence permit—and it must be within three months of the purchase.
How do you get a VAT refund?
Note that VAT refund rules vary from country to country in the EU, but here’s a general breakdown of how the VAT refund process works.
Step 1: Meet the minimum spending requirement
Nearly anything bought for personal use, from clothing and jewelry to cosmetics and skincare, qualifies for a VAT refund—as long as you meet the country’s minimum spend per transaction. (Sorry, vintage and flea market finds don’t count.) Spain is the only country without a threshold, but the minimum requirement often isn’t steep. In Germany, Greece, and Portugal, it’s €50; Switzerland’s minimum amount is the highest, at 300 CHF (around $385), but it’s also one of the countries with the lowest VAT—a mere 8.1%.
Step 2: Request a VAT refund form
Most luxury retailers and department stores will automatically offer a VAT refund document (also called a tax-free form or a tax refund voucher) if you’ve reached the minimum spend, but be sure to ask the cashier or sales associate at smaller boutiques and even pharmacies (if you’re shopping skincare and cosmetics) for the paperwork. They’ll need to see your passport (some require the physical version and will not accept a copy or a photo of the ID page) to prove you’re a non-EU resident and qualify for VAT back.
Step 3: Fill out the refund form—and keep receipts of your purchase
The retailer often does the heavy lifting here, filling out and signing or stamping the refund form before attaching the receipt. Double-check everything is correct (your personal information, date of purchase, item descriptions and prices) before signing it yourself. Keep the refund forms and receipts or shopping bills easily accessible when you go to the airport—you’ll need to present or scan the forms at customs or a VAT refund counter when leaving the EU.
Step 4: Get your tax-refund form stamped
When you’re flying home or leaving the EU, follow the signs to the customs office at the airport (they’re always in the departure terminals, often near check-in counters). The last step to claiming your refund is the most important—a stamp from customs or electronic validation at a kiosk. While some stores may be able to provide onsite tax refunds, you’ll still have to validate your forms by scanning or stamping them at the airport or train station—proof you’ve taken the items out of the EU. Even if you received a cash refund at the shop, without the stamp, they can reverse the refund and charge your credit card.
Step 5: Claim your refund
Depending on the airport, you may have to go to a separate VAT refund counter (which may be located before or after security) after getting your forms stamped or verified electronically. You’ll want to have everything ready to show customs agents—forms, boarding pass, passport, the unused goods—so keep the items in your carry-on.
Step 6: Receive your refund
Take your pick between an instant cash refund (which may come with a higher commission fee) or a refund to your credit card, which may take a couple of days. Keep your forms together in case you haven’t been refunded within six weeks and need to follow up. It can take longer during heavy travel periods like summer or the holidays, but tax-free services like Zapptax allow you to track VAT refunds right in the app.
How to get a VAT refund in France
If you spend more than €100 at the same store on the same day (now’s the time to snag your dream Chanel bag or shoes!), you’ll qualify for a VAT refund in France. Request a tax-free form (also known as a formulaire de détaxe) that both you and the retailer will sign—and be sure to keep the receipt with it. In department stores like Le Bon Marché Rive Gauche, you’ll find a Tax Refund Area where you can request a refund on the same day or within two calendar days of purchase (you’ll need to show your physical passport). Before checking your luggage at the airport, get the form stamped at the customs office or electronically at a PABLO kiosk (usually near the customs office). Once your form has been approved, you can get reimbursed on the spot or request a bank transfer.
How to get a VAT refund in Italy
When you’re shopping in Italy, you can request a tax exemption form anywhere from designer shops like Gucci and Prada to luxury department stores like Rinascente, as long as you’ve made a purchase of more than €70 at the same shop on the same day (since the tax-free system is now digital, you can show a copy of your passport). When you’re leaving Italy, head to the Agenzia delle Dogane (customs office) with your passport, receipts, and items (keep the tags on in case they inspect them!) to get your forms stamped before heading to a VAT refund counter.
How to get a VAT refund in Spain
When making a purchase in Spain, request an electronic tax-free refund document (DER/DIVA form), which you’ll need to validate at a DIVA kiosk, counter, or customs office when you’re at the airport. Spain not only has no minimum threshold, the stamped form is valid for four years from the issuing date. You can receive an “early refund” in cash (in euros) or on your credit card at any Global Blue or Planet refund point—including airports and even fashion outlets—if you provide a credit card guarantee and leave the country within 15 days.
What if I am not exiting the EU from the country of my purchase?
Not a problem. You can’t collect your refund until you’re departing the EU, so if you shopped in Paris but are returning home from Madrid, you’ll validate your forms at customs in Spain. The same rules apply for what you’ll need to show: the goods (unused), the stamped VAT refund form, your passport, and boarding pass. Since your final exit point from the EU is your only chance to claim a VAT refund, if you’re heading to the UK by train from Paris, you’ll need to validate your forms electronically at the PABLO kiosks inside the Eurostar terminal in Gare du Nord. Unlike the airport or some shops, you won’t have the option for a cash reimbursement—refunds are automatically credited back to your bank or credit card.
Tips from travelers:
- Bring your physical passport while shopping (not all retailers accept a copy or photo) and always ask for a VAT refund form—and make sure it’s stamped or signed.
- You may receive a larger refund if you shop all at once at the same store instead of making multiple transactions.
- Keep track of your receipts in case you may need to present them at US customs.
- Give yourself plenty of time at the airport, and keep the unworn items separate and ready to show during the VAT refund process.
- Remember: If you’ve spent over $800, you’ll have to declare your purchases to US customs. Tax-free shopping in Europe doesn’t necessarily make the items duty-free back home.
