Guide To VAT Refund In Europe
What is VAT?VAT means Value Added Tax. This tax is imposed on the top of the product prices. The retail prices in Europe are already included with VAT.
Who are eligible to apply for tax-refund (refund on VAT)?Visitors to EU countries and tourist. Anyone who does not live permanently in the EU can apply for tax-refund. There are exceptions in some countries for those who live in the EU, but have a permanent home outside the EU. You are also qualified as a visitor if you’re in the EU for a certain time with a specific purpose. And you’re not going to return to the EU for a long period of time. Example is exchange students. Foreign students are allowed to get VAT back within the last month of their studies. The time frame depends on the rules of the country.
Minimum purchaseThere is a minimum purchase of €175 euro in total value in order to apply for tax-refund. This depends on the EU country as some might have lower thresholds. But the minimum purchase has been put in place to make sure it’s worth your time to apply for tax-refund as there are administration fees involved.
Time limit for Customs ApprovalFrom the moment when the purchase has been made, the goods need to leave the EU by the end of the third month in order to be eligible for tax-refund. Within the three months, you are free to travel to other EU countries and purchase more goods. These goods can be applied for tax-refund as well.
How does the VAT refund works? Step-by-step instructionsDefinition: SA means Shopping Assistant
1. In the storeAsk the SA (shop assistant) whether you can get VAT-refund for the goods you buy. Not all shop participates in the tax-refund program, so it’s always better to ask first. And some companies might have different process in tax-refund. Other questions you need to ask:
- What threshold applies to the purchase to be qualified for tax-refund?
- How to process the Tax-refund? (It’s always better to get a clear picture of what you can expect)
- Always ask how the tax-refund process goes, because sometimes the store will refund the taxes to you but mostly they use a third party.
- Ask whether you need to pay administration fee and ask how much the fee is.
2. Show your passport or IDAt the cashier or checkout, the SA will ask you to show your passport or ID. This is a proof that you are visitor or a tourist and live outside the EU.
3. Fill in the tax-free formThe SA will give you a form; you will need to fill in the required information. After that, she will fill in her part of the form. The SA might also ask you for your passport to show that you’re leaving EU within the time limit (see above ‘time limit’).
4. Take the required documentsAfter you’ve paid, make sure you’ve got the required documents to apply for tax-refund later. Here’s a checklist
- The receipt: which proofs where you’ve bought the goods and the purchase price.
- The tax-free form: the details on this form are necessary for the application.
- And other necessary documents to the custom officers (the SA will tell you all about this, the above two are the most important). Make sure all the paperwork is done before you leave.
5. Shop around EuropeYou don’t need to apply for tax-refund immediately. Just shop around Europe, go from country to country and enjoy your stay while shop and spree. You can apply for tax-refund at your last EU country, when you’re about the leave the EU. Important Note: If you’ve your purchases inside the checked luggage, don’t check-in first. You might need to show your purchases at the local custom in order to get the stamps.
6. Let the customs stamp your documentsYou can find the customs in different locations like at the border crossing or even at train stations. But the most resourceful and popular place is at the airport. Gather your documents and get it stamped at the customs office. You will usually find one at the airport, if you need help, go ask the service desk. Also know that you need to bring your unused goods, because the custom might ask to verify that you’re going to export the purchases.
7. Collect the tax-refund – the moneyNow your documents are stamped by the customs. Next is to turn them in. Usually the designer companies work together with third parties like Global Blue – they provide refund services and can usually be found inside the airports. Find their office. Show them your stamped documents and they will refund you the VAT. You can choose to get refund in cash, credit card, cheque or even Alipay. But our recommendation is cash because it’s simple, fast and you will not get any issues later if something goes wrong. If you choose credit card, it could take a few months like three or so. The refund will be hand to you in the currency of the country you’re going to leave. If you like to get the cash in your own currency (or other currency), remember that it’s going to be more expensive. Our advice is to exchange the currency in a favorable store; the airport exchange rates are always higher.
8. Special circumstancesThere are refund services that ask you to mail them the documents. You can mail them from home or before you leave the country via the mailbox after you get the custom stamps. The waiting can take months, but you will either get a check or it will be refunded on your credit card. Tips:
- When you apply for tax-refund, don’t think you can do it in a few minutes and miss the next flight or train. It can take some time.
- Certain countries are not in the EU, for example Switzerland, Norway and Turkey. When you cross the border, make sure you’ve got your documents stamped.
How is your tax-refund calculated?We took France as an example and they have 20% VAT. And let’s say your bag costs €3000 euro. Now let’s calculate how much tax-refund you get.
|VAT refund (20%)||€500|
|Total VAT refund||€360|
- You get €360 euro VAT refund back
- The Administration fee is the compensation for the company that helped you process the VAT refund
- The new price of your bag will be: €3000 – €500 + €140 = €2640
- Your tax-refund in % is: 12%
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Hope someone knows the answers to these — i need to purchase 3 LV bags in Paris, but i need to make them separate transactions as they are for different people back at home. Can i submit 3 separate VATs? or does it all have to on one submission form? And can i made the 3 purchase transactions on the same day or do they need to be on different days?
any help is much appreciated.
Hello, we’re going to Paris, Barcelona and Rome in June 2021, my question is where do I process my VAT refund and where is the best place to purchase a LV bag? Thank you for the information..
Hey! Wondering since it’s been some time from the article if I’ll still get an answer but I’ll give it a shot.
I’m traveling in Italy but have a short layover at Charles De Gaulle airport (so FCO->CDG->LAX). As I understand since CDG will be my last point in the EU do I need to get a customs stamp and refund at that airport? I also realized with an 1 hour 20 minute layover with 40 minutes dedicated to just moving from terminal 2F to 2E, it’ll be extremely tight if not impossible. Any suggestions on still being able to purchase a bag and get a VAT refund?
Thanks in advance, your answer would be so appreciated!
Hi Amy, before you got to Charles de Gaulle airport, you need to process your tax-refund (custom stamp + refund) in Italy. You can still buy handbags at the tax-free area at CDG though, if you can show the SA that you will be leaving EU, she will do the tax-refund for your at the cashier.
Hi Alex. I will be visiting London first then to Italy and back to London in December. Where should I claim VAT refunds? Thank you.
You should apply tax-refund in the last stop. So in London, when you’re back from Italy =)
I bought some stuff from Frankfurt Germany，i will go to Switzerland by train and I will fly back to China directly from Zurich. That means I have to do the stamps and the tax refund in Germany before I go to Switzerland. But the problem is I’m going to Zurich by train. Could I still get the tax refund in the train station or somewhere else? My train is from Heidelburg to Zurich， transfer in Olten and Mannheim. Thank you so much
Hi Rina, let me try to help. The most important thing is the STAMP. When you purchase a bag, you ask for the SA for all the documents, receipts and so on. The document with the info about your product NEEDS to get a STAMP FROM THE CUSTOM before you can go to tax-refund office and get tax-refund.
THE STAMP from the CUSTOMER IS MOST IMPORTANT.
I will try to help you as much as I can. But when you get the bag, ask the Chanel SA where to get the stamp. Maybe she knows a quicker way.
1. You can get a stamp at Frankfurt airport
2. Or when you go to Zurich, you need to make a stop at the border station Basel Bad Bf as there is a German Custom office.
With the stamp on the document, you can go to tax-refund company in Zurich to get your money back.
I will be traveling to London first, then flying from Athens back to USA in May. Planning to buy the Chanel Flap bag in London.
1) I am not sure if UK still part of EU, if so, I assume I could do my tax return in Greece?
2) Or it will be safe if I should claim the tax refund in London instead?
3) Do you have any advice for shopping Chanel in Athens? I heard the exclusive agent only have a very limited stocks. Should I NOT wait if I seeing something nice in London
Hi! I have been following your site and it’s awesome!
I’m going to Madrid from the US and leaving from Lisbon. I want to buy the classic flap ml caviar bag. Q1, the bag is around 4800, if I buy another item at another store that is more than 200 euros will that increase the percentage of my Vat return? I’m assuming over 5k will put me in a different bracket, right? Q2, Do you recommend doing the refund with GlobalBlue? Again, thank you for sharing all your insightful knowledge!
Hi Fran, for the tax-refund rates, check out the list here:
In Spain, you will get more tax-refund above 5000 euro purchase.
As for Portugal, with 4800 euro purchase, you get 14% tax-refund. For 5000 euro purchase, you get around 14.5 tax-refund.
Global Blue company is quite well-known, so it’s recommended.
When will you be going? Keep us updated =)
I am going to Paris and a few other countries this summer from US. However, I am only permanent resident here (with green card). I will be using my Sweden passport for the trip. Will I able to get VAT tax refund? And if I combine all the reciepts, I just need to pay administration fee once? Thank you so much!
Hi, I will be travelling to Balkans for 13 days in March. Will be in Milan & Venice for the first 2 days and planning to get a Chanel boy in Milan. These are the countries that I’ll be visiting in the following order: Italy – Croatia – Bosnia Herzegovina – Montenegro – Albania – Macedonia – Bulgaria – Turkey
My questions are therefore:-
i) Whether I can get the custom stamp on my refund form at Italy – Zagreb(Croatia) border and mail the form right after before leaving Italy ? or
ii) Do I need to wait till I get to Bulgaria and get the custom stamp on my my refund form at the Bulgaria – Turkish border since Bulgaria is the last EU country I’m departing from before entering Turkey?
Mind you that we will be traveling by bus throughout this trip before flying back to Kuala Lumpur from Turkey.
Your insight is very much appreciated. Thank you 🙂
Hi Dal, I think the most convenient is to fix everything in Italy before leaving, don’t you think. Because not many people leave from Bulgaria (last eu stop), so we do not know how convenient their service is there in terms of tax-refund.
Are the admin fees for VAT refunds lower at the airport or at places in city center?
I will be going from London>Brussels>Amsterdam>Paris then back home to NY.
For example, if I can get all my refunds (in cash) done at the Global Blue or Premier Tax Refund places in city center Paris as opposed to CDG airport.
The admin fees depend. If you need to apply tax-refund, there is a admin fee, for example buying at the city. There is also admin fees involved if you buy at the airports, unless its in tax-free area.
The best location to buy is Heathrow airport? Why? it’s in the tax-free area, if you leave the country from there, the store won’t charge you taxes, thus you save a lot of cash. Also the SA can also do the tax-refund immediately for you there, thus again save you money.
London and paris are packed with boutiques, but for a reason, there are a lot of tourists snapping all the bags and earrings. So it’s a bit of a hunt everywhere to get the item you want. Amsterdam has just one store, but less people in general (it’s quite busier nowadays). Brussel? I would see that as an alternative strategy.
The most important is that YOU KNOW WHAT YOU’RE LOOKING FOR and then buy when you see it. Imagine you finding your favorite bag in London and you skip it because you want higher tax-refund in Paris, and then found out that the bag is not available there in your style.
Hi, I will be travelling from London – Paris – Switzerland – Italy, by train. Thereafter, leaving for Malaysia from Rome Airport.
If I buy a bag in Paris, when should I go to Custom for VAT refund?
a) at the point I leave Paris for Switzerland? Any custom at the train station?
b) at Rome Airport when I leave EU?
a). the last stop of your destination in EU. Everything you buy in London and Paris, you do tax-refund in Rome Airport. Do know that Switzerland is not part of the EU, so all the goods bought there should be tax-refund in Switzerland before you go from there (Switzerland to Italy.
b). Yes, all goods bought in euro countries, do tax-refund in Rome Airport. All goods bought in Switzerland, do tax-refund in Switzerland.
Will they refund me if I don’t keep the box? The packaging is a bit too much since I’m buying a lot. Can I just keep the dust bag? I’m going to leave from Rome airport
Hi Kay, this is quite an unique question, but I think you need the box to get a refund. It’s the whole package.
Please ask the SA when buying, to be certain!
Hi Alex. I didn’t get a box for my Gucci purchase. So I made a lot of purchase. All of them are global blue and one is premier tax. I am leaving from terminal 1. Do you know if there is a premier tax mailbox is terminal 1? The sales associate told us onl in terminal 3. Which I don’t have time to go there.
I will be traveling to Paris and Rome in February. I’m looking to buy another Chanel bag. Are there any limits on how many I purchase? I also want a Louis Vuitton bag and wallet. Curious to know if there are limits to the number of items I buy. Thanks!
For Chanel, one bag per passport per 60 days, I think the accessories like wallets were up to 5 pieces: http://www.bragmybag.com/chanel-bags-prices/
For Louis Vuitton 5 items in 6 months per passport.
This is what I know so far.
Hi, if I buy a bag at Paris and going to Amsterdam, and I am leaving from London, do I need to proceed my tax refund at Schipol Airport or Heathrow London?
London is your last stop. So do the tax refund in London. And when you’re already in Heathrow, or going to, please read this: https://www.bragmybag.com/tax-free-chanel-heathrow-london-airport/