Europeans pay horrendous taxes, including a Value-Added Tax (VAT) on purchases. The tax is similar to the American sales tax, but it can range from 15-25 percent in different European countries. However, unlike American taxes, American tourists may ask for a VAT refund.
American citizens traveling in Europe are not always subject to the Value Added Tax, but it takes some work to get a VAT refund. The tax must be paid at purchase, and you must ask the store for a “tax refund form”. The application for a VAT refund may be made at the time of your departure from the EU, so you must save all your receipts if you are traveling between multiple European countries.
Despite having lived in Oxford as a student, I did not originally know about the availability of the rebate. On a recent trip to the UK, I found about this money-saving tip after buying a high-priced item at a store in London. The clerk informed me that because I had spent more than 50 pounds I could submit for a VAT refund. Since the VAT tax in the UK is 20%, this was a substantial savings on my purchase.
Asking for a VAT Refund Receipt
Some shops require that you spend a minimum amount before they will print you a tax receipt. Other stores, like Carroll’s Irish Gifts in Ireland, will give you a receipt for any amount. I was able to get a tax receipt for spending 20 Euros on souvenirs at a Carroll’s in Dublin. When you go to make a purchase, ask the clerk if you can get a tax receipt of your purchases. If they oblige, the clerk will print out a second receipt of your purchases and give you an envelope. You will have to fill out some personal information on the receipt.
Turning in the VAT Refund Application
Then, put the receipt in the envelope and turn it in at the Tax Refund office in any EU airport when you leave. The taxes will be refunded to the credit card you used to make the purchase. Again, you have to be leaving the EU and returning to the United States when you turn the form in, but all EU airports should have a tax refund office. You can also mail the form in once you arrive back home, but that will delay your refund. I have heard about long lines at the VAT Refund offices in the airports, but I was able to walk up directly to the clerk in Dublin’s airport without any wait.
Rick Steves also has a great post on applying for a VAT refund.
Am I missing anything? Let me know in the comments section!
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