Saving Money While Shopping in Europe - Everything You Need to Know about VAT
If you're traveling to Europe and plan to do a bit of shopping (or a lot), you've probably seen the acronym VAT pop up. Here's what it means, how it affects your purchases, and—most importantly—how to get some of that money back before you fly home.
What Is VAT?
VAT stands for Value-Added Tax. It’s a sales tax included in the price of almost everything you buy in Europe—from sweaters in Italy to ceramics in Portugal.
Unlike sales tax in the U.S., VAT is already baked into the sticker price, so the total you see is what you pay.
The tax rate varies by country and type of item, but most European Union countries charge between 8% and 27%. Italy, for example, charges 22% on most goods.
Can I Get a Refund on VAT?
Yes—but only on certain purchases. You can get a refund on VAT paid for merchandise like clothing, leather goods, art, and souvenirs (but not for services like hotels, meals, or transportation).
If you're doing serious shopping, your refund could be worth the effort.
But if you're only buying a few small items here and there, it might not be worth the time and paperwork. Either way, it’s good to know your options.
Minimum Purchase Requirements
Each country has its own rules, including a minimum spend to qualify for a refund. In Italy, for instance, you must spend at least €155 at a single store. In France, the threshold is around €100; in Spain, it's typically €90.
This means you can't combine receipts from multiple shops—so if you know you're going to splurge, consider making bigger purchases at one retailer.
At the Store: What to Do
To qualify for a VAT refund, you’ll need to:
Ask the merchant to fill out a VAT refund form. (They’ll need to see your passport or a photo of it.)
Make sure you get the original receipt and completed form before leaving the store.
Keep your purchases unused and in their original packaging until after you leave Europe.
Tip: Some stores partner with refund companies like Global Blue or Planet to make the process easier. Look for their logos in the window or ask a staff member.
Shipping vs. Carrying
If the store offers to ship the item home to you, they might not charge VAT at all.
However, be cautious—international shipping fees and U.S. customs duties can eat up any savings. It’s often cheaper to carry the items home yourself and claim the VAT refund later.
At the Airport: Claiming Your Refund
Unless the store processed your refund in advance, you’ll need to do it yourself before leaving Europe.
If you bought items in more than one country, process your documents at your last stop within the EU. For example, if you shopped in France and Italy but fly home from Athens, you’ll claim your refund in Athens.
At the airport:
Find the customs office before you go through security. (Not all airports have the same setup, so check airport maps in advance.)
Get your forms stamped by customs.
Visit a VAT refund desk (e.g., Global Blue or Planet) to finalize your claim and choose your refund method (cash, credit card, etc.).
Plan to arrive at the airport earlier than usual to allow time for this process—especially during busy travel seasons.
Is It Worth the Hassle?
If you're only bringing home a scarf and a magnet, probably not.
But if you treat yourself to a new coat, artwork, or luxury handbag, the refund could be substantial. At a 20% VAT rate, that €500 purse could get you €83 back.
For full details on each country’s rules and refund procedures, GlobalBlue.com is a great resource.
Happy shopping—and enjoy that extra gelato you can buy with your refund!