Here's how to mess up your Europe VAT tax refund (2024)

Table of Contents
Not so fast Oops, too late FAQs

Ellen Creager|Detroit Free Press

A couple weeks ago, I bought $220worth ofgifts at a store in Sorrento, Italy.

The clerk punched buttons on the cash register. A receipt as long as my armprinted out.

"This is your form," he said, rolling up the tape. He explained that all I had to do was takeit to a kiosk at the Rome Leonardo da Vinci (Fiumicino)Airportto get my 27-euroVAT sales tax refund before flying home.

"If you cannot find a kiosk, get it stamped bycustoms," he said. "And here," he pressed an envelope into my hand, "this explains."

I thanked him, then returned to my hotel. The form looked simple enough: my name, address and passport information. The envelope, "Global Blue: How to Get Your Tax Refund," explained how foreign travelers to European Union nations can easilyget a refund of sales tax (calledValue Added Tax, or VAT) they paid on purchases as cash or credit.

We're not talking pennies, here, either.VATsales tax in most of Europe is about 20%, built into the price of the purchase. If you buy a lot of gifts, you can get a pretty good refund.

So I skimmed the instructions. No problem. I'd get my money at the airport.

Not so fast

Terminal 5 at Rome's airport is where North American flights depart. There is a lot of security. I passedthrough one checkpoint, then checked in with the airline and gave themmyluggage. Then Iwent through Customs and more airport security. Then Igot bused to Boarding AreaG.

That is when I started looking around for the kiosk that would give me my refund. No luck. I asked someone. And asked someone else.

Finally, an Alitalia agent pointed to a sign andescalator. "Down there at (boarding area)H," she said.

I went down the escalatorand realized that I would have to get to H on atrain, then go back through security again, and who knows where I would end up and how long it would take.

But no problem, I thought. I'll just mail in the formwhen I get back to Detroit.

Oops, too late

Of course, you know where this is going. If you do not have a customs stamp on your receipt, there is no refund. And if you are already at your gate at Rome's airport, there is no timely way to return to customs to get your receipt stamped. And if you checked your luggage with the gifts in them before you get to customs,the customs officerwill not stamp it anyway because hedid not see proof of the gifts.

In addition, it turns out that Terminal 5 does have aVAT refund desk —not a kiosk —but it is after check-in andbefore customs, and you must know where it is so you don't accidentally skip it.

At any rate, I flew out of Italy without getting a stamp or refund and feeling pretty stupid.

My advice to travelers? If you plan to buy a lot of gifts in Europe for which you could get a tax refund, read up on the logistics before leaving home.The rules will make your head spin, no matter what country you're visiting.

For Italy, study and memorize this map that shows where the VAT refund counter is at the airport's Terminal 5:www.globalblue.com/customer-services/tax-free-shopping/refund-points/italy/rome-fiumicino-terminal-5/.

And if you manage to make it there, I'd really appreciate it if you could try to get my27 euros for me.

Detroit Free Press Travel Writer Ellen Creager:ecreager@freepress.com.

Here's how to mess up your Europe VAT tax refund (2024)

FAQs

Which European country has the best VAT refund? ›

Hungary has the highest VAT refund at 27%.

Can you get the VAT refund without a Customs stamp? ›

Without the stamp, you will not obtain the refund. You must then follow the steps explained at your refund document or by the shop assistant. You can claim your VAT refund in bigger airports immediately, otherwise you will have to send the refund form to the address given in the shop.

Is the Wevat app legit? ›

The app is convenient, reliable and simple to use. I don't have to deal with pages of refund forms flying everywhere anymore – it's all combined into one easy form. “ “I can track how much I'm being refunded in real-time – the more I spend, the more I get back!

Can you get a VAT refund in the USA? ›

The United States Government does not refund sales tax to foreign visitors. The foreign country in which you paid the Value Added Tax (VAT) is responsible for refunding the tax. Some countries won't refund after the fact, so check with the Foreign Embassies & Consulates office of the country you visited. Also.

Is a VAT refund worth it? ›

Bottom line. A value-added tax can catch some travelers off guard and getting a VAT refund takes patience and persistence. But if you're eyeing a big-ticket purchase while traveling, it can be worth the effort. So make sure you learn the proper procedures and keep track of your paperwork.

Do Americans pay VAT in Europe? ›

There is no new rule for non-EU small businesses. Since 2003, the EU has had a law in place that non-EU small businesses pay the VAT that they're about to force on their own union (a sales tax according to the customer's country rate, not the seller's).

Do you need passport for VAT refund? ›

Make sure you have your passport with you before you start shopping—you'll have to provide proof that you are a visitor. If you're shopping specifically to get a discount, ask the shop if it participates in VAT refunds and if it has a specific purchase-amount threshold.

Can you get a VAT tax refund after leaving Europe? ›

The VAT can be refunded if the merchandise is purchased and exported by a customer whose residence is outside the European Union. Please note that in order to qualify for tax-refund the merchandise has to be exported within three months of purchase.

Can you claim VAT back without a receipt? ›

In this situation HMRC will accept a claim for VAT where you can show to its satisfaction that: the purchase actually took place, this might include alternative documentary evidence. it was a purchase for your business. you made reasonable checks about the supplier.

How long does a Wevat refund take? ›

Standard refund service: It takes up to 3 months for you to receive your refund from the date of your departure. Fast refund service: It takes up to 7 days for you to receive your refund from the date of your departure.

What is the best VAT refund app for Paris? ›

Airvat is the easiest way to claim up to 20% VAT refund in France. Airvat also offers a pioneering service of VAT refund on online shopping provided it is delivered to an address in France.

Is ZappTax reliable? ›

Reliability: ZappTax is the first digital tax-refund operator approved by the tax and customs authorities.

Where is the highest VAT refund in Europe? ›

The 5 Countries with the Highest VAT Rates
  • Hungary - 27%
  • Croatia - 25%
  • Denmark - 25%
  • Norway - 25%
  • Sweden - 25%

Does VAT apply to US citizens? ›

The US lacks a federal VAT system due to its federalist system of government, which delegates tax management responsibilities to individual states. Implementing a centralized, nation-level VAT system in the US would require significant efforts to unify diverse tax systems.

How long do VAT refunds take? ›

You will usually get your refund within ten days of HMRC receiving your return, but it may take longer. You should contact HMRC if you have not heard anything after 30 days.

Who has the lowest VAT in Europe? ›

Luxembourg has currently the lowest VAT rate with a VAT rate of 17%. Each EU member state decides on the percentage of VAT (Value added tax) tax on the of goods and services.

Which European country has the highest VAT? ›

The EU countries with the highest standard VAT rates are Hungary (27 percent), Croatia, Denmark, and Sweden (all at 25 percent). Luxembourg levies the lowest standard VAT rate at 17 percent, followed by Malta (18 percent), Cyprus, Germany, and Romania (all at 19 percent).

How much is the VAT refund in Italy? ›

The standard VAT rate in Italy is 22%. Italy will reimburse between 13% and 15% of the amount you spend during your trip on products subject to standard VAT rates. The minimum purchase threshold is 154.95 EUR.

How much is the VAT refund in France? ›

Although the standard VAT rate is 20%, tourists cannot get a full refund of 20% on their purchases. Only some of the VAT can be claimed back, around 12%.

Top Articles
Latest Posts
Article information

Author: Patricia Veum II

Last Updated:

Views: 5745

Rating: 4.3 / 5 (44 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Patricia Veum II

Birthday: 1994-12-16

Address: 2064 Little Summit, Goldieton, MS 97651-0862

Phone: +6873952696715

Job: Principal Officer

Hobby: Rafting, Cabaret, Candle making, Jigsaw puzzles, Inline skating, Magic, Graffiti

Introduction: My name is Patricia Veum II, I am a vast, combative, smiling, famous, inexpensive, zealous, sparkling person who loves writing and wants to share my knowledge and understanding with you.