"TAX-FREE SHOPPING" Page 1, 2, 3

How much you'll save

VAT rates vary from country to country and, in some cases, according to the nature of the merchandise. (Luxury items may be taxed at a higher rate than food or books, for example.) Also, you're required to spend a minimum amount in a store to apply for a refund, and this minimum is different for each country.

The table below shows the most common VAT rates in selected European countries. Rates can and do change, so this table should be used only as a general guide:

Notes and tips:

• Refund percentages are slightly less than VAT percentages. (For example, 17.5% VAT added to the wholesale price translates into a 14.9% refund of the retail price.)

• Global Refund and other refund services take a modest commission on refunded VAT. For most purchases, the convenience makes the commission worth it, but you may want to obtain the refund directly from the store for extremely large purchases. (Department stores often have special refund arrangements for tourists.)

• If you're buying large items such as furniture for shipping abroad, ask if you can deduct the VAT at the time of purchase. Some countries allow this for goods shipped overseas.

• VAT refunds do not apply to services, or to food, film, and other goods that are used inside the country of purchase. (Business expenses may be eligible for VAT refunds in some cases, but such refunds are beyond the scope of this article.)

• When leaving the country or the European Union, have your purchases available for inspection when you present your Tax-Free Shopping Cheques or refund forms to be stamped.

• Merchant participation in VAT refund schemes is voluntary, and smaller shops in non-tourist areas may feel that refunds aren't worth the hassle.

Eligibility for VAT refunds:

• If you live outside the European Union, you're eligible for VAT refunds in all European countries that offer such refunds.

• If you live within the European Union, you're eligible for VAT refunds only in non-EU countries that offer such refunds.

For more information on tax-free shopping, go to:

Next page: Related Web links

Basics

VAT savings

Web links

---

Money tools and tips at Europeforvisitors.com:

Currency converter

The euro

ATMs and exchange machines

ATM conversion fees

Using credit cards in Europe

Credit-card surcharges

Visa TravelMoney Cards

Traveler's checks

Tax-free shopping (VAT refunds)

Travel-insurance articles

---

Search for more information on our site:

Custom Search

---

 

 

Copyright © 1996-2009 Durant and Cheryl Imboden and their licensors.
All rights reserved.