Shopping „"no taxes"” in the European Union refers to the value added tax refund system (VAT) available for non-EU residents for goods they purchase and export from the EU. Visitors can usually recover thebetween 10% and 20% of the purchase price, depending on the country's VAT rate and processing fees.
Eligibility and general rules:
To be eligible for a VAT refund, you must meet the following criteria:
1) You must be a resident outside the EU. This applies even if you are a citizen of an EU country but permanently reside elsewhere.
2) The goods purchased must be for personal use and exported from the EU within three months from the end of the month in which they were purchased.
3) You must spend over a certain minimum amount per store (or per invoice), set by each EU country.
4) You must present the purchased goods, receipts and a completed VAT refund form to customs officials at your final point of departure from the EU for validation. The items must be unused at the time of presentation.
Step-by-step application process:
1/ Buy from stores „"Tax-Free": Look for stores displaying signs „"Tax-Free Shopping".
2/ Request a VAT refund form: At the time of purchase, inform the merchant that you wish to request a VAT refund and present the proof that you are not an EU resident (usually, passport). 3/The merchant will provide you with a form (e.g. Formaire de Détaxe in France, Ausfuhrbescheinigung in Germany).
4/Get validation customs: lat the airport, train station or border crossing point, when leave the EU, Go to the customs office before checking your luggage in. Present the forms, receipts, passport, and physical goods to get the official stamp on the forms.
5/Submit the refund form: take the stamped forms to a tax refund counter (operated by companies such as Global Blue or Planet) from the airport or mail them to the merchant/agency. You can choose to receive the refund inin cash or as a credit to the bank account/on the credit card.
Important details and exceptions:
# Minimum expenses: The minimum purchase amount varies significantly from country to country. For example, in Germany and Greece it is around €50, but in Italy it exceeds €154.95.
# Eligible goods: Most general goods, such as clothing, electronics, cosmetics, and jewelry, are eligible.
# services (hotel accommodation, car rental), tobacco products, pharmaceuticals and cars I am not, in general, eligible for reimbursement.
# Fees: VAT refund agencies often charge an administrative fee, so the final amount you will receive will be slightly less than the total VAT paid.
!!!! UK after Brexit: The UK (except Northern Ireland for non-EU residents) no longer offers a general VAT refund system for tourists
