Frequently Asked Questions
What is VAT-free shopping?
VAT-free shopping allows non-EU residents to claim a refund on the Value Added Tax (VAT) paid on goods purchased in the EU when they leave the EU. Here's what you need to know:
- Refund amounts are usually lower than the full VAT amount
- Most countries have a minimum purchase amount to be eligible for a VAT refund
- Not all goods are eligible for VAT refunds
How are VAT refunds calculated?
VAT refunds are usually calculated as a percentage of the purchase price. The exact refund amount can vary by country and company that processes the refund. Remember:
- Refund rates are often lower than the full VAT rate due to processing fees
- Some retailers may offer higher refund rates as a marketing strategy
- The minimum purchase amount and refund rate can significantly impact your total refund
- Currency exchange rates may affect the final refund amount if you're claiming in a different currency
European countries with the highest VAT rates
Hungary (27%), Sweden (25%), Denmark (25%), and Norway (25%) have some of the highest standard VAT rates in Europe. Other countries with high rates include:
- Croatia (25%)
- Finland (24%)
- Greece (24%)
- Ireland (23%)
- Poland (23%)
Which countries are you most likely to get the highest refund from?
Countries with high VAT rates are generally where you're most likely to get larger refunds, benefiting you more. This is because:
- Higher VAT rates mean a larger portion of your purchase price is tax
- Even with processing fees, you're likely to get back a more significant amount
- Countries like Hungary, Sweden, and Denmark often offer substantial refunds
- However, always check the specific refund rates and minimum purchase amounts, as these can vary
How to claim a VAT Refund
Follow these steps to claim your VAT refund:
- Ask for a VAT refund form at the time of purchase
- Customs will check the condition of your products and may deny refund if used. Keep purchaces unopened
- Keep your receipts and unused goods easily accessible to save time at customs
- At the airport, show your goods, forms, and passport at customs
- Claim your refund at a refund office or mail the form back to the retailer
Remember:
- Allow extra time at the airport for this process
- Some airports have electronic kiosks for faster processing
- Each country may have slightly different procedures, so research beforehand