Love Shopping? Here’s How To Do Tax-Free Shopping In Europe The Right Way
by Travelopod
June 18, 2025
If you're heading to Europe from the US and planning to shop, there’s good news for you. You can actually enjoy tax-free shopping in Europe on some of your purchases, saving you significantly. Yes, that’s true!
All you have to do is request a refund on the tax. The tax is called VAT (Value Added Tax), which is added to the prices of most things you buy. But as a US traveler, you're not required to pay that tax. It is a straightforward process with just a handful of steps.
This guide is written just for you. Whether you’re buying fashion in Paris or souvenirs in Rome, this guide will help you figure out how to get your refund without stress.
Let’s break it down.
First, What Is VAT?
First, What Is VAT?
VAT stands for Value Added Tax. The cost you see on the tag usually includes this tax in Europe. You don’t see it listed separately like sales tax in the US, as it is already included.
Most VAT rates range between 15% and 25%, depending on the country.
But here’s the fun part: as a US citizen, you are eligible for a VAT refund on many of your purchases. With just a bit of paperwork, you could get up to 20% of your spending refunded.
What Can You Get a Refund On?
What Can You Get a Refund On?
You’re probably wondering, “Do all purchases count?”
You’re probably wondering, “Do all purchases count?”
Not quite. However, a lot of them do. Here’s what usually qualifies for a VAT refund:
- Clothing, fashion, and shoes.
- Watches and jewelry.
- Electronics (like cameras or headphones).
- Perfumes, makeup, and skincare.
- Leather goods and handbags.
- Souvenirs and local crafts.
Now, here’s what doesn’t qualify:
- Food or groceries
- Restaurants or bars
- Hotel stays
- Guided tours or train tickets
- Car rentals or services
Tip: If it’s something you’re physically taking back home, it likely qualifies.
European Shopping Tax Refund: The Minimum Spending Criteria
European Shopping Tax Refund: The Minimum Spending Criteria
You can’t just buy a €5 magnet and get a refund. Most countries require a minimum purchase amount to be made in a single store on the same day.
Here are some examples of popular destinations:
- France – €100.01
- Italy – €154.94
- Germany – €50.01
- Austria – €75
- Spain – No national minimum, but many stores require around €90
So if you're shopping in Milan or Berlin, just ask the store clerk: “Is this amount eligible for tax-free?” They’ll help you out.
Note: The VAT refund policy may vary in real time. Please cross-verify the information before traveling.
Step-by-Step: How to Claim Your VAT Refund in Europe
Step-by-Step: How to Claim Your VAT Refund in Europe
Let’s break down each step, starting with shopping and ending at the airport.
1. Shop at Stores That Offer VAT Refunds
1. Shop at Stores That Offer VAT Refunds
Keep in mind, some stores don’t offer VAT refunds—spot them by checking for these clues:
- “Tax-Free Shopping” signs.
- Logos like Global Blue, Planet, or Premier Tax Free.
A quick look at VAT refund options side by side.
Feature | Premier Tax Free | Global Blue | Planet |
Refund speed | Varies (2–8 weeks) | 2–6 weeks (often faster) | 72 hrs – 30 days |
In-store refund | Limited availability | Limited availability | Common in major cities |
Mobile tracking | Basic (less robust than competitors) | Yes – App + email | Yes – App, SMS, email |
Coverage | Smaller network (mainly boutiques, Spain, France, Italy) | Widest global presence | Wide but not all-inclusive |
Fee structure | Often slightly lower | Standard (~3–7%) | Higher with possible FX markups |
Kiosk access at airports | Not always available | Available in major airports | Widely available |
These stores generally offer VAT relaxation to tourists like you and will help with the paperwork.
2. Show Your Passport
2. Show Your Passport
You’ll need your passport with you to qualify for VAT refunds. This document represents that you are not a resident of the EU. Some stores can even ask for your flight information.
Pro tip: Keep your passport handy while shopping. A photo on your phone might not work.
3. Ask for the Tax-Free Form
3. Ask for the Tax-Free Form
Once you’ve paid, the store will give you a tax refund form along with your receipt. Some stores even put it in a little envelope for you.
Make sure the form includes:
- Your full name.
- Passport number.
- Purchase amount.
- Store’s signature or stamp.
Don’t lose this form. You’ll need it later at the airport.
4. Keep the Items Unused
4. Keep the Items Unused
This part is important. Your items must be unused and ready for inspection when you leave Europe.
That means:
- Don’t wear the jacket.
- Don’t open the camera box.
- Keep everything in its original packaging.
Customs may inspect your purchased goods, which should be carried unboxed for verification.
5. Get to the Airport Early
5. Get to the Airport Early
On your way home to the US, arrive early at the airport, at least 3 hours before your flight.
Why? Because you’ll need time to:
- Find the Customs office.
- Show your items and tax forms.
- Get your forms stamped.
You’ll do this before you check in your luggage. So keep your goods and paperwork in your carry-on or easily accessible suitcase.
6. Visit the Refund Counter
6. Visit the Refund Counter
Once your forms are stamped, go to the tax refund desk (usually right near Customs or after security).
Based on the company you chose, you will be eligible for a refund in:
- In the form of Euros (Cash).
- Can opt to receive a refund to your credit card (if the purchase was made through the same medium).
- Or drop the forms in a prepaid envelope.
Important Note: Credit card refunds can take 3–8 weeks, so don’t panic if it doesn’t show up right away.
How Much Will You Get Back?
How Much Will You Get Back?
It is essential to note that you won’t get 100% of the VAT back. Refund companies take a small service fee (around 2–5%).
Still, the refund amount can be quite substantial. For example, on a €1,000 purchase in France, you could get €120 to €150 back. That’s a great bonus.
Quick Tips to Make It Easier
Quick Tips to Make It Easier
Here are some smart habits that make the whole process smoother:
- Buy more from fewer stores to hit the minimum amount.
- Take photos of your stamped forms, just in case.
- Pack goods in carry-on if possible for quick inspection.
- Keep all receipts and forms together in a folder.
- Get to the airport early and plan time for lines.
What Not to Do
What Not to Do
These small mistakes can cost you your refund:
- Forgetting to ask for the VAT form at the store.
- Not showing your passport at checkout.
- Using the product before leaving the EU.
- Skipping the Customs stamp.
- Losing your receipts or refund paperwork.
Make sure to check each step, especially the stamp. Without it, no refund.
Best Countries for Tax-Free Shopping
Best Countries for Tax-Free Shopping
As a US traveler, some countries are better for VAT refunds than others. Here are the top ones:
- France: High VAT (20%) and amazing luxury shopping. Paris is a fashion lover’s dream.
- Italy: Leather goods, designer wear, and shoes. Refunds are big, but the minimum spend is high.
- Germany: Great for electronics, watches, and practical shopping. The refund system is smooth.
- Spain: Affordable and colorful shopping, especially for gifts and crafts.
- Austria: Known for high-end shops and organized refund services in Vienna.
Final Thoughts
Final Thoughts
Shopping in Europe is fun, and now you know how you can make it super affordable too.
If you're a US traveler, you can get money back on many things with tax-free shopping in Europe. You just need to follow a few easy steps, save your forms, and show them at the airport before you fly home.
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