VAT Refunds In Europe: What You Need To Know

Hi Frugalistas!  Even though I don’t like to waste my money when traveling, once I get to Europe, like most women I love to shop up a storm!  Even though I don’t necessarily buy a lot of stuff (just one carry on bag remember!) I have been known to drop some serious cash (or plastic as the case may be), so getting a VAT refund on my purchases is a key money saving strategy I use to make sure I don’t pay anymore than I need to.

Here’s how it works:

1.  You buy stuff.  There is a minimum purchase amount per store per day that varies from country to country that you need to adhere to.  They will give you a set of special receipts you need to have stamped when you leave the EU.  You will need to hand over your passport and credit card details in the shop when you buy.

2.  You travel around with the stuff.  Don’t wear or use what you’ve purchased – they can decline your refund.

3.  When you leave the EU you show your stuff to Customs at the special VAT refunds counter in the departure hall of the airport, they will stamp your receipts, sight your goods and send you on your way.  You can then either post your stamped receipts or queue up again and get a cash refund depending on the system the vendor where you bought the goods uses.

4.  You get money – usually about 10% of the purchase cost either in your hand or a few weeks later on your credit card.

Keep an eye out for signs offering tax refunds, but don’t restrict yourself to just the shops with signage

Sounds easy, doesn’t it?  Well, it’s not hard, but there are some tricks for young players:

It’s hard to get good advice on how to do it.  Which is why I am writing this.  The best I’ve ever found apart from this is at the ever reliable Rick Steves website.  This website gives you the spend amounts for each country plus other good things (like it can be hard to claim in Italy for example).

It can take up to 3 months for your refund to come through so don’t rely on the cash to pay off your credit card in a hurry.

If you shop in a department store, you take your purchases to the special VAT refunds counter to have your refund receipts organised

So, here are my top tips for maximising and claiming your VAT refund in Europe:

  1. Make sure you know what the spend is in each country.
  2. Look out for signs in shop windows advertising refunds.  They are guaranteed to know exactly how to do it.  If there isn’t a sign don’t be put off – just ask before you complete your purchase.
  3. Don’t spend money just to get a refund – you only get back between 10 and 12%.  If you’re only a few Euro short  and you can buy something cheap it’s worth it, but any more than that isn’t!
  4. Keep your goods handy in case the customs officer wants to see them.  You must be departing the EU with the goods, so they may ask to see your goods just to check.
  5. Don’t use or wear the goods.  It’s OK to take them out of their wrapping for packing purposes, but don’t turn up wearing your new ensemble – you may be refused a refund as the goods are clearly used.
  6. Persistence might be required to find exactly where to get your receipts stamped.  Don’t assume the country you are departing from WANTS to give you a refund!  I spent an hour and a half in Milan on the great VAT refund treasure hunt!
  7. Department stores may lack the charm of shopping in boutiques, but they are usually very well organised for VAT refunds, and are an easy way to get up your required purchase amount – you can consolidate your cheaper purchases towards your total as long as you do your shopping in the store on one day.  Just don’t expect the Refund Desk to be somewhere easily found, no matter how well signposted it is.
  8. Always ask about the VAT refund BEFORE you pay for your goods.  Once the payment is completed there’s nothing the shopkeeper can do for you.
  9. Allow plenty of time at the airport in case you have trouble finding the Refunds desk or there is a long queue.
  10. If you are traveling round Europe alot you need to claim your refund when you leave for the last time.  Remember not all countries in Europe are part of the EU!

Refunds all ready to go!

For more about my adventures in VAT refund land, visit my guest blog post on Brookevstheworld

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5 Comments on “VAT Refunds In Europe: What You Need To Know”

  1. BlondeBrunetteTravel 09/09/2012 at 1:23 pm #

    I spent at least as long as you did at the airport in Milan. There was only on woman resentfully stamping the receipts and giving everyone and endless inquisition so you really do need to allow time for the process. Also if you take the cash refund they keep a percentage which can be worth it just to know it’s been done. And they will give you the refund in your currency if you ask (usually).

    This was a good post topic – why didn’t I think of it? 🙂

    • frugalfirstclasstravel 09/09/2012 at 1:44 pm #

      I had been warned about Milan airport and the VAT refund so was prepared – once I found where to go it was OK. I’m planning on testing Heathrow next month, so wish me luck!

      Thanks for dropping by and sharing your experience – we all learn from each other that way.

  2. ekpword 07/11/2013 at 12:11 pm #

    Hi, I have a question for you. I got all my receipts stamped at the Paris airport and I didn’t know I had to mail the receipts to another place. I’m back home now and I found my stamped receipts…can I mail them to someplace to get the refund? If so, where do I mail it to?
    Thank you!

    • frugalfirstclasstravel 07/11/2013 at 6:19 pm #

      Yes, you can mail them from home. You should have an envelope with a mailing address on it. Use that envelope and send it to the address.

Trackbacks/Pingbacks

  1. How to Save Money Traveling in Europe | frugalfirstclasstravel - 10/07/2012

    […] when you leave Europe to save even more!  For more details on how to do this, see my earlier post here. Work out how to do a VAT refund, and your savings will sky […]

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