usa tourist vat refund

How to get your maximum VAT refund when traveling abroad

While a European vacation is undoubtedly an unforgettable experience, it can be expensive.

That's why savvy travelers have various strategies in place to save money on flights, hotels and rental cars (hopefully by reading some of TPG's great money-saving advice ).

One of the most overlooked ways travelers miss out on saving money is by forgetting to apply for a VAT refund.

VAT is a Value Added Tax . Let's say, for example, you just went on a shopping spree in Rome or splurged on gifts at the El Corte Ingles department store near Las Ramblas in Barcelona. You more than likely paid VAT on your purchases, but the good news is that visitors to the European Union can often get a refund on that tax. Think of it as the traveler's tax break.

Despite the obvious savings that can come with VAT refunds, the amount of money Americans leave on the table each year in unclaimed refunds is estimated to be in the billions. Don't be one of those travelers.

Getting your VAT refund is worth the time and effort it takes, especially if you're traveling within the EU .

The rules surrounding VAT refunds have somewhat changed in recent years, so it's important to read up on the latest rules (including the U.K.'s discontinuation of VAT refunds for international visitors since Brexit). Here's everything you need to know about getting your maximum VAT refund when traveling in Europe.

What is a VAT?

VATs and goods and services taxes (GSTs) are common worldwide; more than 160 countries have them.

In the EU, the VAT is similar to the sales taxes imposed in the U.S., but there are also some big differences. One of the biggest: VAT rates are much higher than those you pay in state and local sales taxes in the U.S.

The EU's minimum standard VAT rate is 15% — far more than the combined state and local sales tax rates you'll find anywhere in the U.S. However, the average standard VAT rate in the EU currently sits around 21%. All EU countries have standard VAT rates above the 15% threshold; Luxembourg has the lowest rate at 16%, and Hungary has the highest at 27%.

"The VAT is a major income revenue for the tax authorities in Europe," said Britta Eriksson, a VAT expert and CEO of Euro VAT Refund , a Los Angeles-based company that helps companies manage VAT in their overseas operations. "[VAT] represents almost as much as the income tax in terms of revenue for the government."

Many EU countries offer lower VAT rates on certain goods. Sweden, for example, has a standard VAT rate of 25%. However, for some food items, restaurant services and even hotels, a reduced VAT of 12% is offered.

France has reduced the VAT on certain agricultural products and even some cultural events to 5.5%. In other nations, items such as books, newspapers, and bike and shoe repairs receive a reduced VAT rate of only 6%.

As you can see, these "special rates" vary from country to country, so make sure you do your homework before your trip. The EU also exempts some goods and services from VAT; some exemptions include educational services, financial services and medical care.

What are the refund rules?

Prices in the EU always have the VAT included. If you're visiting an EU country, you'll generally have to pay the price of an item, VAT and all, and get your refund after the fact.

There are several requirements to follow to claim your refund. For instance, you must take your new item or items home within three months of the purchase. VAT refunds are not available for large items like cars. EU visitors also cannot get a VAT refund for services like hotel stays and meals.

Some countries require that your purchase exceeds a certain amount to be eligible for a VAT refund. Like the VAT rates, this minimum purchase amount varies from country to country.

For example, in France, the minimum amount is now 100.01 euros (about $107) for the total amount of purchases you buy on the same day in the same shop. In Belgium, the minimum is 50 euros (about $54); in Spain, there is no minimum purchase amount to claim a VAT refund.

One important thing to note is that you can only claim a VAT refund on new items. Your merchandise must be new and still in its packaging when you leave Europe. The goods can't be unpacked, consumed or worn. If you want to claim your refund, you should pack away whatever you purchase and wait until you get home to open it.

Getting your refund

Thousands of European stores do what they can to accommodate tourists seeking refunds and will usually have signs in the window reading "tax-free" or "VAT-free" shop.

As you pay for your item, inform the clerk that you're an EU visitor and intend to get a VAT refund. The store will have some paperwork for you to fill out. Have your passport ready to prove your visitor status. You may also need to show your airline ticket as proof you're leaving Europe in the allotted time in order to claim a VAT refund.

Some stores will refund your VAT, but in most cases, you'll likely have to take your refund forms and get your refund processed elsewhere.

Many stores work with third-party agencies, such as Global Blue or Planet , to process VAT refunds, and these agencies usually have facilities in major cities where you can take your completed forms and get your refund.

When purchasing your items, check to see if your merchant is partnered with these agencies.

On departure day, be sure to take your receipts, the refund forms the shops filled out, the items you bought and all your other travel documents with you to the airport so that you can present everything to customs.

If you're touring multiple EU countries during your trip, you'll complete this process at the last EU country you visit. That means if you visit France and Italy before ending your trip in Spain, you will apply for the VAT refund on your purchases in Spain.

Customs may inspect your purchases, so make sure they're available and not in your checked baggage. Also, make sure the goods are unused and unworn.

If all goes well, the customs office will stamp your refund forms. If either the store or one of the third-party refund agencies has already given you your refund, you'll have to mail this stamped form back to them to prove you left Europe within the mandated three-month period. Otherwise, you risk having your refund canceled and your credit card charged for the VAT you owe.

If you haven't done so already, you can also get your refund at the airport. The big refund agencies have facilities at all the major EU airports, sometimes at a currency exchange. Just show them your stamped customs forms and your passport to get your refund, minus a fee.

No VAT refund in the UK

Before we share some advice on getting your VAT refunds, we want to remind everyone that the U.K. no longer has VAT-free shopping for international tourists. In fact, Great Britain is now the only European country that doesn't offer the savings opportunity for international visitors.

The VAT retail export scheme was eliminated when the U.K. exited the EU in 2021. It resumed briefly before being axed, supposedly for good, in 2022.

Although there's some optimism that VAT refunds could return to Britain in the future — the U.K.'s tourism industry is lobbying for its return — it's not an option for now.

While VAT refunds are no longer available in England, Scotland and Wales, you can still claim refunds if you're visiting Northern Ireland. There are also several exceptions and rules to know; for example, it doesn't apply to services like hotel bills. You can find the list of restrictions here . You should also be aware that some merchants and refund companies in Northern Ireland charge a fee for using tax-free shopping. Still, if you're planning a visit, you could save some money on your shopping.

Tips for maximizing your savings with a VAT refund

Here are some do's and don'ts for getting your VAT refunds.

Research the country

Before your trip, look up the VAT rules for the country you're visiting and check the standard and reduced VAT rates, as well as the minimum purchase points.

As we mentioned earlier, the rates and rules of what qualifies for a VAT refund can vary depending on where you visit, so make sure you're aware before you get there.

Remember that many countries outside the EU also charge a VAT, and their refund policies can differ greatly from what you'll find in Europe.

Research the store

Stores aren't required to provide VAT refund assistance of any kind.

"If you have a store that doesn't have this program, then getting a refund is very complicated," Eriksson warned.

Keep an eye out for stores displaying "tax-free" or "VAT-free" signs. Ask the store employees which third-party agencies they partner with for refunds. Also, ask how they process refunds and what fees they charge. As we noted above, some retailers in some countries may charge a fee to visitors using tax-free shopping.

Allow extra airport time for your refunds

Don't expect to be the only traveler at the airport seeking a VAT refund before heading home. Expect to wait in line for a bit. Plan ahead and give yourself extra time at the airport, as the line can be long.

If you're strapped for time after leaving customs, some agencies will let you drop your stamped forms in one of their mailboxes, and they'll issue your refund later.

Consider shipping your purchases home to avoid VAT entirely

If you don't want to deal with any of this stuff, Eriksson suggests another option.

"You can also have the store ship [your items] to you directly," she said. "Then, they won't charge you VAT."

But there's a catch.

"You still have to pay for the freight," Erikkson added.

Shipping costs from Europe to anywhere in the U.S. can get wildly expensive. So, you have to weigh that shipping cost against the VAT and the time and effort it would take to get your refund to decide if it's worth it.

Make sure the refund is worth the trouble

"If you buy expensive clothing and china, then it's absolutely worth it," Eriksson said.

While many VAT countries have purchase minimums for refunds, in others, any purchase a visitor makes qualifies, no matter how small. So, you should ask yourself if it's worth applying for a VAT refund for that cheap tchotchke you bought as a souvenir.

Bottom line

All this talk of forms, looking for signs, standing in line and getting stamped can take the impulse out of your impulse buy. However, it could save you a lot of money in the long run.

If you pay attention and budget your time wisely, you might get back enough money through VAT refunds to help pay for your next visit across the Atlantic.

How to get Tax Refund in USA as Tourist, Resident for Shopping ? FAQs

America is one of the best places to buy clothes, electronics, etc. You get the best value for the money spent. If you are a tourist from Asia or Europe, you will find the prices much cheaper when you buy things in the US at outlet malls.

Many are not aware that you may be able to get tax refunds as a tourist if you buy in some states like Texas in the US. In this article, we will cover all the details on how to get tax refunds, the requirements and conditions, and address some commonly asked FAQs.

Do you get a Tax Refund for Shopping in the US at Malls or Online Stores?

It depends on the US state you do shopping in. If you shop in certain states like Texas, you will likely get a tax refund for your purchases in the US as a tourist. The US Government or US Tourism websites do not have a published list that says that you get a Sales Tax Refund when you buy things in a certain US state.

It is unclear if you would get a tax refund if you buy stuff online. You need to check with the online retailer on this, as this depends on where you ship your goods and how the seller will charge you state tax. Also, even if you get a refund, there are way too many conditions to get a decent refund back. We will look at these details in later sections of the article.

Tax Refund: State Sales Tax vs. Federal Sales Tax?

In America, there is no Federal Sales Tax (national-level sales tax). When you buy goods in the US, the respective State or Local Government charges you State Sales Tax . The US Federal Govt., usually imposes customs duty or tariffs on the federal level and is not charged directly to the end consumer.

The sales tax you pay for shopping in the US goes to the respective state govt. or local govt and does not go to the federal government. So, you usually get the State Sales Tax or Local Govt. Sales tax as a refund if you are exporting the goods outside of the US.

Below is a reference image from Taxfoundation.org that shows approximate State tax by the state for your reference.

Sales Taxes in the US by State for Year 2023

As you would usually get the State Tax as a refund, it is important for you to review the respective tax you paid for you to get an estimate. You can see that in the purchase receipt. There will be a section that clearly tells as Sales Tax. That is nothing but the State Sales Tax.

Below is one of the purchases in Houston, Texas, done by me for your reference. You can see the Sales Tax highlighted to get an idea.

Sales Tax Receipt for Refund in US as Tourist Sample

The US Government does not refund Sales Tax to Visitors

US Customs and Border Protection has clarified on the CBP website that says the below:

“The United States Government does not refund sales tax to foreign visitors. Sales tax charged in the United States is paid to individual states, not the Federal government …” . – US Customs and Border Protection(CBP) Website

It means that the US Federal Government on a country level does not refund any sales tax and you need to check with the respective US State, where you made the purchase from.

Check the below screenshot from the US CBP Website that clarifies the tax refund status from the US Govt. side.

US Sales Tax Refund Clarification by CBP Website - 2023

Hence, it is important to be clear that the Sales Tax refund completely depends on the US State, where you purchased your goods as a visitor and has nothing to do with the US Govt. or Federal Govt. We will look at some states and requirements to get a tax refund in the next section.

Requirements to get Tax Refund in USA as Tourist or Resident

The requirements to get a tax refund varies by the US State. Also, they are slightly tricky to get a decent refund, as they force you to purchase more at a single store. Most of the requirements or conditions are common for foreigners and US Citizens. The only difference is where they can claim a tax refund and when.

Below are the general requirements for Tax Refund for Tourists

Minimum Amount : Depending on the state, there is a minimum amount of tax you need to have per receipt or purchase from a brand store or outlet store. In Texas, you need to have a minimum of $12 tax per receipt or combined receipts from the same brand stores. Technically, in Texas with an 8.25% sales tax, you need to purchase for at least $150 USD in a single store or brand outlet to be eligible for the refund.
Original Receipts : You need to submit original receipts at the Tax refund counter. They do not accept duplicate, photocopy, or reprint sales receipts. You need to submit the first original receipt that is printed. No digital or e-mail receipts are accepted unless it is an online purchase item from a brand store and if the receipt has the delivery address of the goods in that state. You need the packaging slip of delivery for online purchases.
Within 30 days: You need to have the purchase done within 30 days from the day of your international travel or departure date from the US.
International Travel : You get a refund only if you are traveling outside of the US, and the items you buy will stay outside of the US. Technically exporting it to another country. That’s why they ask for the original receipt and take it for a refund. It means that the sale is final in the US, and there are no returns for the same goods you bought here in the US.
Physical Inspection : You need to show your item purchased for physical inspection and it has to be in new and unused condition with all the tags.
Passport, I-94 / Entry Stamp : You need to show your Visa/ Passport and I-94 with an entry stamp on it if holding a foreign passport.
Departure Information / Flight Tickets : You need to show your international departure info or flight ticket itinerary. For US citizens, you need to show the boarding pass to get a tax refund.
Items should Depart US & State: The items purchased in the US must be taken with you and should depart the state you purchased in and America.
Food or Services: No refund for food or services purchased.
Participating Stores: You get Tax Refund only if you purchase goods from the participating stores. This depends on the state as well. In Texas, they claim the stores’ list is over 6,500+ stores…but watch out for the brands. I purchased from a few brands that were not eligible for a refund, such as Abercrombie & Fitch.
Instant Cash : If you want instant cash, it is a 50% processing fee for a tax refund.
Check / PayPal : If you want a check or can get a refund to PayPal, then it is 35% of the tax refund. Also you may also be charged $4 USD for every single store or brand purchase.
Refund Locations: Both US Citizens and non-US citizens can claim tax refunds at all major international airport terminals. They usually would have a Tax refund desk at these locations. Check the airport for the details on the terminal. Also, if you are a non-US citizen, then you can even claim tax refunds at certain mall locations in the state. Check the state website for the exact locations in a state. For example, for Texas, here are the refund locations .
Tax Refund Policies: Tax refund policies can vary by state, and there is no standard sales tax percentage set as well. You should check the Sales Tax and Tax Refund policies in that respective state before you shop to ensure you get a tax refund. For instance, if you shop in Delaware, there is no sales tax, so no refund. For policies in Texas, check out Requirements for Sales Tax Refund in Texas

Tips for Tax Refund as a Tourist or Resident in the US

Overall, a Tax refund is definitely a good thing, if you are doing a lot of shopping and taking it home. The only downside is that you have to give the original receipt of purchase. I did shopping for over $900 USD, but could not get a sizable tax refund as I did not know all of these facts and conditions. If you plan it ahead of time, you may be able to get a decent tax refund. Below are some tips

Duplicate Receipt / Re-prints : When you buy your item, request a duplicate receipt or re-print of the receipt. You can use this duplicate receipt for a warranty in your home country or international location.
Take a Photo of Original Receipt: Take a picture of the original receipt and if requested by the warranty location outside of the US, then you can use the photo and duplicate the receipt.
Buy maximum at One Brand Store: Make sure you pick a few brands and do shopping in those brands’ outlets so that you meet the minimum requirement of a Tax refund. If not, you will not be eligible for a tax refund, as you will miss out on the minimum. I did not get anything as I bought in multiple brands and they were less than $150 purchase per store, so I was not meeting the minimum amount of tax refund in Texas.
Register for Warranty: If you are buying an electronic item and if there is an option to register online, register for warranty, when you have the original receipt.

Common FAQs

We have addressed some of the commonly asked questions below.

The sales tax refunds are paid by the respective State Govt. or local Govt. where you made the purchases. It is a state sales tax refund and not a Federal govt refund. IRS does not give any sales tax refunds.

Yes, your visa status does not matter for tax refunds. All visa types are eligible, including H1B, L1, F1, etc. Anyone traveling outside of the US is eligible for a tax refund. All the tax refund conditions described in the above article apply to everyone.

Yes, US Citizens are also eligible for a tax refund, provided they travel outside the US within 30 days after the purchase of the goods. You can only claim it at airports on the day of your departure. All the conditions and requirements are described in the above article

When you shop in America, you are not subject to Value Added Tax (VAT) or Goods and Services Tax (GST). The concept of VAT and GST exist in many countries, but in the US it is different, and you are only subject to Sales Tax when you do shopping.

This depends on the state and if they offer the tax refund. In certain states, if they charge sales tax and have a policy in place to refund sales tax, then you would likely get the tax refund. It is best to check with the online vendor and then the state policy for the same.

What are your experiences with tax refunds as tourists? Did you get any tax refund as a Resident? Share your thoughts in the comments.

Our top picks of timely offers from our partners

Value-Added Tax (VAT): What it is and how to get it refunded if you shop while traveling

What is a value-added tax (vat) and can i get it refunded.

The idea of a value-added tax (VAT) is a foreign concept to most Americans. That puts us in the minority, though: VAT , a multi-layered tax applied at each stage of the manufacturing and marketing process, is used in more than 170 countries —including Canada, Mexico and just about all of Europe.

VAT is applied to most goods and services but if you're planning on international travel , there's a good chance you can get a refund on at least some of your VAT payments.

What we'll cover

What is a value-added tax (vat), sales tax vs. vat.

VAT pros and cons
How you can get your VAT refund

Bottom line

A value-added tax (VAT) is very similar to a traditional sales tax , in that the consumer pays it at the point of purchase. It's typically a percentage of the price of the product, but standard VATs range greatly among nations.

The largest difference between VAT and sales tax is when the tax is applied: With a sales tax, the levy is paid only once, by the retail customer. With VAT, though, each stage of the production process is taxed, from raw materials to the finished product.

For example, a farmer sells flour to a baker for $1 plus a 10% VAT. The baker pays the farmer $1.10 and the farmer sends 10 cents to the government. The baker then turns that flour into a birthday cake and sells it to a supermarket for $3, plus a 30-cent VAT. The baker reports the sale but only has to submit 20 cents to the government because she already paid 10 cents VAT when she bought the flour. Finally, the market sells the cake to a customer for $5, plus a 50-cent VAT. The customer pays $5.50 but the grocer only has to send 20 cents to the government to the government because he already paid 30 cents VAT when he bought the cake. The government still gets its 50 cents from the sale of the birthday cake, but it's divided up along the supply chain — 10 cents from the farmer, 20 cents from the baker, and 20 cents from the supermarket.

Does the United States have a VAT?

The United States is in the minority of countries that don't levy a value-added tax, though most states have a sales tax that serves the same purpose. The US also charges federal excise taxes on certain goods, including fuel, alcohol and tobacco products.

Supporters of a VAT in the US claim it would streamline the revenue process and limit tax fraud. But critics argue it takes revenue control away from states and forces small businesses to carry much greater administrative costs.

How to get a VAT refund

Visitors to countries with VAT still have to pay it, but they can qualify for a refund on certain items. ( The European Commission defines a visitor as "any person who permanently or habitually lives in a country outside the EU.") It's a fairly complicated process and it's easy to miss a step, be told incorrect information or just have your request rejected for no discernable reason. So be sure you want to put in the effort.

First, ensure your items are eligible: They must be new and unused or unworn. The idea is that the goods are for "export," not for use on your trip. And there is typically a minimum amount you have to spend in a store to qualify — as of November 2023, the minimum in the EU is 175 Euros . So it's usually high-ticket items, like jewelry or fine clothing, that qualify for a VAT refund, not a paperback novel or suntan lotion. There are also a number of goods and services that are not eligible for refunds, including hotel rooms and meals.

It's also important to confirm the store you're patronizing participates in a VAT refund program. Some don't and others have very specific requirements. VAT policies may vary within a country, too: While refunds are not available in the majority of the UK , you can sometimes get one in Northern Ireland.

Let the shop know you're interested in a VAT refund. You'll need to provide proof of your "visitor" status—usually your passport, though you may have to show your airline ticket, as well—and fill out some paperwork. Many stores have relationships with refund companies such as Global Blue or Planet , which can streamline the process.

Shipping your purchases home directly from the retailer is another way to avoid paying VAT, but the added cost may outweigh any savings.

You can try to get your VAT refund through the mail but the process takes much longer and can be unreliable. Most people submit their requests at the airport on their way home. You'll have to present your documents to a customs agent, whose stamp is required as "proof of export." There could be a substantial wait, so be sure to get to the airport early. And you may have to present the items, so don't pack them away in your checked luggage.

The good news is that larger airports have currency exchanges or branches of refund companies that will give you your money, minus a fee. It may come in local tender or as a charge back on your credit card.

While you may have to jump through hoops to qualify for your VAT refund, a credit card with no foreign transaction fees can save you from more financial hassles while traveling.

The American Express® Gold Card is a great option for international travel, with no foreign transaction fees, 3x on points on flights booked directly with an airline or on amextravel.com, and a $100 credit on a two-night minimum stay at a Hotel Collection property through American Express.

American Express® Gold Card

4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases

Welcome bonus

Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.

Not applicable

Regular APR

See Pay Over Time APR

Balance transfer fee

Foreign transaction fee, credit needed.

Excellent/Good

See rates and fees , terms apply.

Read our American Express® Gold Card review .

The Capital One VentureOne Rewards Credit Card doesn't charge foreign transaction fees, either, and members earn unlimited 5 miles per dollar on hotels and rental cars booked through Capital One Travel, in addition to unlimited 1.25 miles per dollar on all purchases. There's also a welcome bonus of 20,000 bonus miles if you spend $500 on purchases within the first three months from account opening.

Capital One VentureOne Rewards Credit Card

5 Miles per dollar on hotel and rental cars booked through Capital One Travel, 1.25X miles per dollar on every purchase

Earn a bonus of 20,000 miles once you spend $500 on purchases within 3 months from account opening, equal to $200 in travel

0% intro APR on purchases and balance transfers for 15 months

19.99% to 29.99% variable

3% for the first 15 months; 4% at a promotional APR that Capital One may offer you at any other time

Terms apply.

Read our Capital One VentureOne Rewards Credit Card review.

Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here .

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.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products . While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up on CNBC Select's in-depth coverage of credit cards , banking and money , and follow us on TikTok , Facebook , Instagram and Twitter to stay up to date.

For rates and fees of the American Express® Gold Card, click here .

This checking account earns 8% APY — with a catch Andreina Rodriguez
Are safe driving discounts worth it? Ryley Amond
Capital One announces new lounge for New York's JFK Airport Senitra Horbrook

Claiming Your VAT Refund in the USA: A Step-by-Step Guide

1.1 What is VAT and How Does It Work?
1.2 The Importance of VAT for US-Based Companies
1.3 Differences Between VAT and Sales Tax
2.1 Who Can Claim a VAT Refund?
2.2 Qualifying Expenses for VAT Refund
2.3 Documentation Required for VAT Reclaim
3.1 Registering for VAT Refund Services
3.2 Submitting Your VAT Refund Application
3.3 Tracking and Managing Your VAT Refund Claim
4.1 Dealing with VAT Refund Delays
4.2 Understanding and Avoiding VAT Refund Rejections
4.3 Best Practices for a Smooth VAT Refund Experience
5.1 Who Can Claim a VAT Refund?
5.2 Qualifying Expenses for VAT Refund
5.3 Documentation Required for VAT Reclaim
6.1 Registering for VAT Refund Services
6.2 Submitting Your VAT Refund Application
6.3 Tracking and Managing Your VAT Refund Claim
7.1 Dealing with VAT Refund Delays
7.2 Understanding and Avoiding VAT Refund Rejections
7.3 Best Practices for a Smooth VAT Refund Experience
8.1 Registering for VAT Refund Services
8.2 Submitting Your VAT Refund Application
8.3 Tracking and Managing Your VAT Refund Claim
9.1 Dealing with VAT Refund Delays
9.2 Understanding and Avoiding VAT Refund Rejections
9.3.1 Sarah Doyle CMO – Finotor Guardian of the Finotor matrix

Understanding VAT for Businesses in the USA

What is vat and how does it work.

Value Added Tax (VAT) is a type of consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. Unlike a sales tax, which is only levied on the final sale to consumers, VAT is collected by all sellers in a product’s supply chain. In the context of the United States, VAT isn’t broadly applied and is more common in international business transactions. Understanding VAT is crucial for businesses operating globally, as they may encounter it in dealings with VAT-imposing countries.

The Importance of VAT for US-Based Companies

US-based companies engaged in international trade must be knowledgeable about VAT, as they are likely to conduct business in countries where VAT is implemented. Knowing the ins and outs of VAT helps in compliance with foreign tax laws and can significantly impact a company’s pricing, costing, and financial management strategies. This is especially important for businesses that import goods or services for resale or production. Additionally, a thorough understanding of VAT can reveal opportunities for refunds or credits on taxes paid abroad.

Differences Between VAT and Sales Tax

While both VAT and sales tax are consumption taxes, they differ in the method of collection. Sales tax, as applicable in most US states, is a single-stage tax applied only at the point of sale to final consumers. In contrast, VAT is a multi-stage tax applied at each point of value addition in the supply chain. Unlike sales tax, VAT is often a neutral tax for registered businesses, as they can reclaim the VAT they pay on business-related expenses, which isn’t typically possible with sales tax.

Eligibility Criteria for VAT Refund in the USA

Who can claim a vat refund.

In the USA, the opportunity to claim a VAT refund is generally reserved for foreign businesses and tourists who have incurred VAT on eligible expenses within VAT-imposing countries. US businesses may also seek VAT refunds from their business expenses in these countries. Understanding who qualifies for VAT refunds and under what circumstances is fundamental for financial efficiency when engaging in international commerce.

Qualifying Expenses for VAT Refund

Qualifying expenses for a VAT refund typically include business-related expenses such as travel, trade show participation, and certain goods and services purchased for business use. To qualify for a refund, these expenses must be incurred in a country that charges VAT and the claimant must meet the specific criteria set by that country’s VAT refund laws.

Documentation Required for VAT Reclaim

The documentation required to support a VAT refund claim usually includes original invoices and receipts, proof of export for goods, and sometimes a completed VAT refund form from the relevant tax authority. Keeping thorough and accurate records is vital for successfully claiming a VAT refund. For more detailed information on the VAT refund process in the EU, businesses can refer to the EU’s guide on VAT refunds for non-EU businesses at taxation-customs.ec.europa.eu .

The VAT Refund Process: A Detailed Walkthrough

Registering for vat refund services.

Before applying for a VAT refund, companies may need to register with the tax authorities of the country where the VAT was paid. This could involve providing company information, tax identification numbers, and other relevant details. For assistance in navigating this process, businesses can explore comprehensive financial management solutions like Finotor , which centralizes and automates financial operations.

Submitting Your VAT Refund Application

Submitting a VAT refund application typically involves filling out the necessary refund forms provided by the foreign country’s tax authority, along with attaching the required documentation. Accurate and timely submission is crucial for a successful refund claim. For information on tax refunds within the USA, including income tax refunds, taxpayers can visit usa.gov/tax-refunds .

Tracking and Managing Your VAT Refund Claim

Once the application has been submitted, businesses should track the status of their VAT refund claim and be prepared to provide additional information if requested by the tax authority. Effective management of this process is key to recovering VAT costs and can be facilitated by leveraging financial tools and applications designed for streamlined financial tracking and reporting.

Overcoming Common Challenges in VAT Refund

Dealing with vat refund delays.

Delays in receiving VAT refunds can occur due to incomplete applications, errors in documentation, or processing backlogs at tax authorities. It’s essential for businesses to follow up on their applications and ensure all requirements are met to minimize delays in the refund process.

Understanding and Avoiding VAT Refund Rejections

VAT refund rejections can stem from a variety of issues, including ineligible expenses, incorrect filing, or failure to comply with specific regulations. To avoid rejections, companies must thoroughly understand the VAT laws of the country in question and adhere to all guidelines when submitting their claim.

Best Practices for a Smooth VAT Refund Experience

To ensure a smooth VAT refund experience, businesses should maintain organized records, understand the VAT laws of each country they operate in, and consider enlisting the help of financial management platforms like Finotor. By adopting best practices, companies can navigate the complexities of VAT refunds with confidence and efficiency.

In the United States, VAT, or Value Added Tax, is not widely implemented as it is in many other countries. However, for US-based businesses engaging in international trade, understanding VAT is crucial. Generally, VAT refunds are applicable to businesses that have incurred VAT charges on overseas expenses. This includes companies participating in trade shows, conferences, or purchasing supplies and services abroad. It is essential to verify your business’s eligibility with the relevant foreign tax authority to confirm whether you can claim a VAT refund.

Qualifying expenses for a VAT refund can vary by country, but they typically include costs such as business travel, accommodation, promotional activities, and the import of goods for trade purposes. To ensure that your business maximizes its VAT reclaim opportunities, it is essential to keep a detailed record of all international business expenses that may be subject to VAT. Detailed knowledge of the specific VAT regulations in each country you are operating in is also necessary.

The documentation required for a VAT refund claim generally includes original invoices and receipts, proof of exportation, and VAT refund application forms provided by the foreign country’s tax authority. Businesses need to provide thorough and accurate records to support their claims. For efficient management of these documents, a solution like Finotor can be invaluable, offering a central platform to keep track of financial transactions and simplify the reimbursement process.

To begin the VAT refund process, businesses must first register with the tax authority of the country from which they seek a refund. This can often be done online and might require providing company details and documentation proving the business is established outside of the country. Once registered, you may be able to use the services of a VAT refund agency, which can streamline the process significantly. Utilizing platforms like Finotor can further enhance the efficiency of managing VAT-related information and submitting refund claims.

After registering for VAT refund services, your next step is to accurately and timely submit your VAT refund application. This application should include all relevant documentation and adhere to the specific deadlines and requirements of the country in question. For further guidance and insights on the refund process, resources such as Rick Steves’ VAT Refunds and CNBC’s VAT Guide can be incredibly useful.

After submitting your VAT refund application, you’ll need to monitor its status. This involves keeping track of correspondence with tax authorities and being prepared to provide additional information if requested. Efficient tracking and managing of your VAT refund claim can be facilitated by leveraging Finotor’s comprehensive financial management tools, which provide a unified platform to oversee all aspects of your VAT reclaim, ensuring a transparent and streamlined process.

VAT refund delays can be a significant challenge for businesses. To mitigate delays, ensure that all documentation is accurate and submitted on time. Establishing a contact within the tax authority can also help in navigating the process and resolving issues promptly. Companies like Finotor offer integrated financial solutions that can help keep your refund claims organized and on track.

VAT refund rejections can occur for various reasons, including incomplete applications, incorrect information, or submission outside the allowable time frame. To avoid these pitfalls, businesses must thoroughly understand the VAT laws of the country they’re dealing with and meticulously prepare their documentation.

Adopting best practices, such as maintaining meticulous financial records, understanding different countries’ VAT policies, and utilizing financial management tools like Finotor, can significantly enhance the VAT refund experience. Being proactive and vigilant throughout the VAT refund process will help ensure a smooth and successful reclaim of your business’s VAT costs.

Claiming a VAT refund in the USA can be a meticulous process, but understanding each step can make it manageable and beneficial for your business. Below, we provide a detailed walkthrough of the VAT refund process, ensuring that you are well-informed and prepared to reclaim your dues effectively.

To initiate the VAT refund process, businesses must first register for VAT refund services. This can often be done online, and it involves providing necessary business information and VAT details. It is crucial to ensure that all information is accurate and up-to-date to prevent any issues down the line. For comprehensive financial management solutions, consider exploring Finotor , which can assist with streamlining your tax and accounting operations.

Once registered, the next step is to submit your VAT refund application. This involves the collection and organization of all relevant invoices and receipts that clearly show the VAT paid. It is essential to categorize and itemize these documents as per the required guidelines. For more insights on what is needed for submission, you can refer to the official Customs and Border Protection guidelines . Detailed and accurate record-keeping is paramount in this phase to facilitate a smooth refund process.

After submitting your application, keeping track of its status is important. Many countries offer online platforms where you can monitor the progress of your VAT refund claim. Effective tracking allows you to manage the expectations of your cash flow and address any queries from the tax authorities in a timely manner. For further information on VAT and its implications for businesses, NerdWallet’s resource on VAT can be a valuable tool.

Navigating the VAT refund process does not have to be an overwhelming challenge. By understanding each step and preparing thoroughly, your business can efficiently reclaim the VAT paid, thus improving your bottom line. Remember, utilizing advanced financial management tools like those offered by Finotor can significantly enhance the efficiency and accuracy of your financial operations, including VAT refund claims.

When it comes to claiming your VAT refund in the USA, businesses may encounter a range of challenges that can complicate the process. Understanding these hurdles and knowing how to navigate them can ensure that your business reclaims the maximum amount with minimal delay. In this part of our step-by-step guide , we’ll explore common issues and provide essential advice to facilitate a smooth VAT refund experience.

One of the most frequent frustrations businesses face is VAT refund delays . These can occur due to a variety of reasons, including incorrect or incomplete documentation, backlog at the tax authorities, or simply the complexity of the claim. To mitigate these delays, it’s crucial to submit accurate and thorough documents from the outset. Utilizing all-in-one financial management tools like Finotor can help streamline this process, ensuring all financial records are accurate and easily accessible. Additionally, familiarizing yourself with the VAT refund timelines and starting the process early can help manage expectations and reduce waiting times.

Another common challenge is VAT refund rejections . Rejections can happen if the claim does not meet the eligibility criteria, has insufficient supporting evidence, or if there are discrepancies in the reported amounts. To avoid rejections, it’s essential to understand the eligibility requirements and to meticulously prepare your claim. Ensure that you provide all necessary documentation, such as original invoices and receipts, and that your application aligns with the IRS guidelines for foreign tax credit, if applicable.

The key to a smooth VAT refund experience is preparation and attention to detail. Here are some best practices to employ:

Stay Informed: Keep up-to-date with the latest VAT laws and regulations in the USA, as these can change and impact your refund eligibility or process.
Use Technology: Implement financial management solutions, like those offered by Finotor , to automate and simplify the management of your finances, including VAT-related tasks.
Keep Organized Records: Maintain comprehensive and organized records of all transactions that are relevant to VAT. This will expedite your claim process and help in case of audits.
Seek Expert Advice: Consider consulting with VAT refund specialists or tax advisors who can offer personalized guidance and help navigate complex cases.
Plan Ahead: Start the VAT refund process well in advance of deadlines to accommodate any unforeseen delays or additional information requests.

Adhering to these practices will not only help in overcoming common VAT refund challenges but will also position your business to take full advantage of the potential tax savings and cash flow improvements offered by the VAT refund mechanism.

Sarah Doyle CMO – Finotor Guardian of the Finotor matrix

You want to start a business ? Get Your free business plan template !

Email Address*

Knowledge Article

Refund of foreign taxes paid (VAT) & (GST)

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. the United States does not participate in the VAT tax refund, and U.S. Customs and Border Protection officers are not mandated to stamp VAT tax forms.

Article Number

Date Published

Ask a Question

Submit a Complaint

Submit a Compliment

Report Illegal Activities

Additional Information

Sales Tax Compliance Platform
Real Time Calculations
Sales Tax Reports
Nexus Insights
Filing and Remittance
Integrations
Food and Beverage
Mid-Market Business
Small Business
Resource Center
Sales Tax Fundamentals
Sales Tax by State
Sales Tax Calculator
Help & Support
TaxJar & Stripe Tax
Contact Sales

Featured content

Subscribe to our free sales tax newsletter

Resources Blog Calculations

Can US tourists get a sales tax refund when leaving the country?

by TaxJar January 5, 2024

Please note: This blog was originally published in 2021. It’s since been updated for accuracy and comprehensiveness.

I remember traveling in Ireland and a nice shopkeeper reminding me that I could get any VAT I paid as a tourist back before leaving the country. How handy! But that led me to wonder, since the US is so fragmented (what with 46 states and Washington D.C. all administering their own sales tax), does the US do the same thing for tourists when it comes to sales tax?

The short answer is: not really.

But there are some exceptions. Let’s take a look at what tourists from outside the US can expect when it comes to a sales tax refund.

There’s no federal US sales tax

Before we get into the how of sales tax refunds, it is first important to understand the “why.” Unlike Europe, where a nationwide value added tax (VAT) is applied to most transactions, the US allows each state to set their own sales tax rules and laws.

Sales tax is charged at the point of sale and is a percentage of the price of the product. Sales tax is a “consumption tax,” meaning that it is charged for use of the product. That’s why a retailer who is buying a product to resell does not have to pay sales tax while an end user does have to pay sales tax – because they are the one “consuming” the product.

And even if sales tax weren’t a consumption tax, because the US’s sales tax is fragmented among the forty-six different states (and Washington D.C.) that all have a sales tax, there’s no easy or commonsense way for a tourist in the US (especially one who has traveled and made purchases in multiple states) to collect any sales tax paid before leaving the country.

Exceptions to the tourist sales tax refund rule

According to the Sales Tax Institute , there are a few exceptions which allow international tourists to claim sales tax paid. They are:

Louisiana tax free shopping program – Individuals traveling in the US for less than 90 days and who hold a foreign passport, US Visitor’s Visa and an international transportation ticket to leave the country can apply for a refund on sales tax paid at a few qualifying retailers. Learn more at the Louisiana Tax Free Shopping Program website .
Texas private sales tax refunds – Some private companies in Texas will refund the sales tax paid by international visitors who shop at certain stores. This is very limited, and requires the buyer to purchase from a participating store and provide proof such as original receipts, travel documents, flight or transportation numbers and even spend a certain amount of sales tax per store in order to participate.
Washington non-resident sales tax exemption – The state of Washington provides a sales tax exemption to buyers who make a purchase of an item in Washington but do not intend to use the item in the state of Washington. Learn more about Washington’s non-resident sales tax exemption here .

You can also read more about each program here: “ I am visiting from another country. Can I get a refund of sales tax paid? ”

Diplomatic sales tax exemptions

Diplomats serving in the US, as well as their families and dependents, are not required to pay sales tax. In this case, the diplomat and their contingent are given a sales tax exemption card. According to the US Department of State, “Diplomatic tax exemption cards can generally be used to obtain exemption in person and at point-of-sale from sales taxes and other similarly imposed taxes on purchases of most goods and services, hotel stays, and restaurant meals in the United States.”

These cards must be presented each time the diplomat is required to pay sales tax. The vendor must look up the card’s validity or risk having to pay the unpaid sales tax out of pocket.

You can learn more about the US diplomatic sales tax exemption here .

The basics of US sales tax

Learn the fundamentals of sales tax.

Calculations

2024 sales tax holidays

Sales tax and non-taxable items

How to manage sales tax when drop shipping

How to collect sales tax through Square

Resale certificate, how to verify

Sales tax by state: Is SaaS taxable?

by TaxJar February 1, 2024

Sales tax by state: should you charge sales tax on digital products?

Credit cards
View all credit cards
Banking guide
Loans guide
Insurance guide
Personal finance
View all personal finance
Small business
Small business guide
View all taxes

Missed Tax Day? File as soon as possible to limit penalties. Try our fast, hassle-free tax filing. It's just $50.

Missed Tax Day? Try our fast, hassle-free tax filing. It's just $50.

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

Value-Added Tax (VAT): What It Is, How Refunds Work

Tina Orem is an editor at NerdWallet. Prior to becoming an editor, she covered small business and taxes at NerdWallet. She has been a financial writer and editor for over 15 years, and she has a degree in finance, as well as a master's degree in journalism and a Master of Business Administration. Previously, she was a financial analyst and director of finance for several public and private companies. Tina's work has appeared in a variety of local and national media outlets.

Pamela de la Fuente is the assigning editor on NerdWallet's taxes vertical. Her team covers tax brackets and rates, income tax filing and tax-advantaged retirement accounts, among other topics. She has been a writer and editor for more than 20 years.

Pamela joined NerdWallet after working at companies including Hallmark Cards, Sprint Corp. and The Kansas City Star.

She is a thought leader in content diversity, equity, inclusion and belonging, and finds ways to make every piece of content conversational and accessible to all. (Everybody needs to understand taxes after all, right?)

She is a Maynard 200 fellow with the Maynard Institute and was a presenter at the National Association of Black Journalists convention in 2023. She is a two-time winner of the Kansas City Association of Black Journalists' President's Award. She is also a founding co-chair of NerdWallet's Nerds of Color employee resource group.

Pamela is a firm believer in financial education and closing the generational wealth gap . She got into journalism to tell the kind of stories that change the world, in big and small ways. In her work at NerdWallet, she aims to do just that.

Value-Added Tax: What It Is and How VAT Tax Works

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

If you’ve ever traveled outside the United States and done some shopping, chances are you’ve noticed a VAT, or value-added tax, on your receipts. Here’s what VAT is, how it works, and how you might be able to get your money back.

What is value-added tax (VAT)?

A value-added tax (VAT) is a tax on products or services when sellers add value to them. In some countries, VAT is also called a goods and services tax. Similar to but not exactly like a sales tax, VAT is applied throughout the process of a good's production, with consumers paying a percentage of the tax upon sale.

Simple tax filing with a $50 flat fee for every scenario

With NerdWallet Taxes powered by Column Tax, registered NerdWallet members pay one fee, regardless of your tax situation. Plus, you'll get free support from tax experts. Sign up for access today.

for a NerdWallet account

Transparent pricing

Maximum refund guaranteed

Faster filing

*guaranteed by Column Tax

How value-added tax (VAT) works

Value-added tax is typically a percentage of the sale price. For example, if you purchase a pair of shoes for $100, and the VAT rate is 20%, you would pay $20 in tax at the register when you pay for the shoes.

Value-added tax rates vary by country, and some countries exclude certain goods or services from the tax altogether. For example, the European Union requires that an EU country’s VAT rate must be at least 15%. Some things qualify for a reduced rate, which has to be at least 5% [0] European Taxation: Taxation and Customs Union . VAT rates . Accessed Jun 4, 2024. View all sources .

Although businesses may pay value-added tax on the goods and services they buy, they generally get to recoup those payments from the VAT they collect from their customers. The businesses then remit what’s left to the government.

Is there VAT in the U.S.?

There is no VAT in the United States.

Even though the United States doesn’t have a value-added tax, it does require consumers to pay federal excise taxes on the purchase of gasoline, alcohol, tobacco and other products. In addition, several states and cities collect sales taxes. Intuitively, the concepts are similar in that they are all taxes on consumption. The difference is in how the tax is collected. Over 100 countries have a VAT [0] PricewaterhouseCoopers . Value-Added Tax (VAT) Rates . Accessed Jun 4, 2024. View all sources .

» MORE: See how to deduct sales tax on your income tax return

How to get a VAT refund

If you visit a country with a VAT, you might be able to get a refund on the tax you pay when you shop there. However, there are many steps, and some travelers decide the VAT refund process isn’t worth the trouble.

Here are some of the general rules, but before you travel, be sure to check the VAT rules in the country you plan to visit.

Spending on food and hotels often isn’t eligible for VAT refunds.

Typically, you pay the value-added tax at the time of purchase and then apply for a refund from the shop.

Usually, your purchase must be over a certain amount in order to qualify for a VAT refund. In the EU, for example, you have to buy at least 175 euros worth of stuff in a shop. [0] European Commission: Taxation and Customs Union . Guide To Vat Refund For Visitors To The EU . Accessed Jun 4, 2024. View all sources The threshold isn’t cumulative, though, meaning that spending 100 euros in one shop and 100 euros in another shop doesn’t meet the minimum. It may be worth it to consolidate your shopping if you’re angling for a VAT refund.

Some shops don’t offer VAT refunds. Some shops process the refund directly, and some shops use third parties to process the refund. Ask for written instructions about how to claim your VAT refund.

You usually have to be a visitor to get a VAT refund. The address on your passport matters here. You might qualify as a visitor if you’re living in the country temporarily but have a permanent home somewhere else.

You’ll likely need to show the store clerk proof that you live outside the country, and you’ll have to fill out a form.

Sometimes the shop charges a fee for VAT refunds, so be sure to ask about that ahead of time.

Usually, you’ll need to mail your stamped VAT refund form to an address the shop provides. But you don’t always have to wait to get back home. Some big airports, ports and train stations have VAT refund offices where you can get your refund right away — if the retailer you shopped at uses that office.

When you go home with your stuff, a customs officer has to stamp your refund paperwork as proof of export. Without the stamp, you won’t get your VAT refund.

On a similar note...

Tax-Free in the USA for Foreigners and Tourists from Other Countries

April 7, 2023

Is There a Tax-Free Program in the USA?

According to the U.S. Customs and Border Protection department, the United States Government doesn’t refund sales tax to tourists and foreign visitors .

Even though the USA does not have a tax-free program like Europe, foreigners and tourists can return taxes or buy without taxes by:

Making a purchase in a state where there is no sales tax
Making a purchase in a state that has a sales tax refund (or VAT refund)

Tax-Free Shopping in the USA – List of States

By 2023, only five states do not charge VAT on the purchase of goods:

New Hampshire

Although these states charge other forms of tax instead of VAT, the absence of a sales tax can make shopping more rewarding, especially for out-of-state visitors or tourists.

Everyone (both locals and foreigners) can buy goods without VAT in tax-free states. However, there are two more states, where just foreign tourists, such as people from Mexico, can return sales tax in the USA:

In those states, the program is similar to the European one: buy product and then return sales taxes. With that said, the approach varies per state:

Louisiana – Shop at a tax-refundable store and show your passport to the cashier. To find out stores where you can shop without taxes, search for the white-red-blue stickers that indicate “Louisiana Tax-Free Shopping”. The seller will provide a tax return voucher that you can exchange for money at the New Orleans airport or downtown Lafayette. You can find out more about Tax-Free in the USA on the official website of the tax refund program .
Texas – It works similarly, but in addition, a flight ticket or other travel document is also required. In Texas, you can also make a tax refund at the airport or at 14 other locations across the state.

Tax-Free in the USA allows you to save money while shopping in the US by buying goods without taxes or receiving return taxes for purchases that you have already made.

VAT refunds

How to get a VAT refund for cross-border transactions

If you have paid VAT for a transaction in an EU Member State where you do not reside, you may be eligible for a VAT refund in certain circumstances.

Note: This page deals only with refunds for cross-border transactions. For ‘standard’ VAT refunds in which both vendor and customer are in the same country, please consult that Member State’s national tax authority .

There are 3 types of VAT refunds for cross-border transactions:

Cross-border VAT refunds to EU businesses

EU businesses that incur VAT in connection with their activities in a Member State where they do not habitually supply goods or services (and are thus not required to register there for VAT) are nevertheless entitled to obtain a refund from the Member State where they incurred the VAT. To qualify for a VAT refund, during the refund period a business must NOT have:

been based in the refunding EU Member State, or
supplied goods or services there, except
exempted transport and ancillary services (Articles 144, 146, 148, 149, 151, 153, 159 or 160 of the VAT Directive ), or
supplies to customers liable for payment of the related VAT under the reverse-charge mechanism (Articles 194-197 or 199 of the VAT Directive )

The claimant's home Member State will not forward the claim to the refunding Member State if the claimant:

is not a taxable person for VAT purposes
only makes exempt supplies without right of deduction
is covered by the special scheme for small businesses
is covered by the flat-rate scheme for farmers

To request a refund, claimants must send an electronic refund claim to their own national tax authorities, who will confirm the claimant's identity, VAT identification number and the validity of the claim. The request will then be forwarded to the Member State where VAT was incurred. If tax authorities are late in making the refund, claimants are paid interest.

For more information on the refund procedure, see the Summary of VAT refund procedure .

For the full rules, see Directive 2008/9/EC and Implementing Regulation 79/2012 .

More information

Links to country-specific information .

Country-specific VAT guides (Vademecums) - limitations on the right to deduct VAT
VAT refunds - country guide (Vademecums) - variations in the VAT refund rules in each Member State
EU Member States using the business activity codes contained in Commission Regulation 79/2012

Links to other VAT guides

Information requirements in EU country of refund
eLearning modules on VAT refund
Contact points of the competent national authorities

VAT refunds to non-EU businesses

Non-EU businesses that incur VAT in connection with their activities in an EU Member State where they do not habitually supply goods or services (and are thus not required to register for VAT) are nevertheless entitled to obtain a refund from the EU Member State where they incurred the VAT. To qualify for a VAT refund, during the refund period a business must NOT have:

been based in any Member State, or
supplied goods or services in the EU Member State where they incurred VAT, except
exempted transport and ancillary services (Articles 144, 146, 148, 149, 151, 153, 159 or 160 of the VAT Directive ), or
services to customers liable for payment of the related VAT under the reverse-charge mechanism (Articles 194, 196 or 199 of the VAT Directive )

In addition, any EU Member State may:

refuse to refund VAT in this way if the claimant’s country/territory does not grant reciprocal refund rights for VAT or similar to businesses based in that Member State
impose restrictions on the type of expenditure that qualify for refunds
insist that the claimant appoint a tax representative

For the full rules of this refund procedure, see Directive 86/560/EEC

VAT refunds to non-EU travellers

VAT refunds for goods sold to non-EU tourists who bring them out of the EU in their personal luggage may be requested to EU retailers or specialised intermediaries, particularly in the following cases:

Tourists whose permanent address or habitual residence (as stated in their passport or other recognised identity document) is not in the EU
EU nationals living outside the EU (who can prove this with a residence permit or similar)

The following conditions apply:

The customer must provide proof of residence outside the EU (e.g. non-EU passport or residence permit).
The goods must be taken out of the EU within 3 months of their purchase. The tourist must provide a stamped VAT refund document proving this.
The value of the goods purchased must be above a certain minimum (set by each EU Member State).
Retailers can either refund the VAT directly or use an intermediary. One of these parties may charge a fee , which may be withheld from the refunded VAT amount.

More on VAT refunds for non-EU tourists on the Your Europe portal

Legal texts

Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax
Council Directive 2008/9/EC of 12 February 2008 laying down detailed rules for the refund of value added tax, provided for in Directive 2006/112/EC, to taxable persons not established in the Member State of refund but established in another Member State
Council Implementing Regulation (EU) 79/2012 of 31 January 2012 laying down detailed rules for implementing certain provisions of Council Regulation (EU) No 904/2010 concerning administrative cooperation and combating fraud in the field of value added tax
Thirteenth Council Directive 86/560/EEC of 17 November 1986 on the harmonisation of the laws of the Member States relating to turnover taxes - Arrangements for the refund of value added tax to taxable persons not established in Community territory

Share this page

Business Concierge
Buy Gift Card

Award Winning

Terms and Conditions

Amendments, refund & cancellation-policy

What is a VAT Refund at the Airport?

Oct 11, 2023 | Travel

Table of Contents

Ever spotted the “VAT refund at the airport” sign during your travels and wondered what it’s all about? In this article, we’ll decode the process for you. Value Added Tax (VAT) refunds at the airport can put money back in your pocket when you shop abroad. We’ll guide you through the essentials, from eligibility to the steps involved, so you can make the most of this money-saving opportunity on your next trip.

Understanding Value Added Tax (VAT)

Value Added Tax, commonly known as VAT, is a consumption tax imposed by many countries on the purchase of goods and services. It’s a tax that’s added to the price of most products and services at every stage of production or distribution, and it’s ultimately paid by the end consumer.

The Concept of a VAT Refund at the Airport

When you travel to a foreign country whether for business or bleisure Travel , you often engage in shopping, buying souvenirs, clothing, or other items. These purchases may include VAT, which is included in the price you pay. However, as a tourist, you might be eligible for a VAT refund on certain goods you bought during your trip.

Here’s How it Works in Simple Terms

Eligible Purchases: Not all purchases qualify for a VAT refund. Typically, it applies to goods that you’re taking out of the country and not using within that country, such as souvenirs or gifts.
Retaining Receipts: To claim a VAT refund, you must keep your receipts. These receipts should show that you paid VAT on the items.
Airport Refund Desk: Before you leave the country, visit the VAT refund desk at the airport. Present your eligible receipts and goods for inspection.
Validation and Refund: Once your documents are validated, you may receive a refund either in cash, check, or credit to your card, depending on the country’s procedures.
Leaving the Country: After receiving your refund, you can proceed with your departure.

The idea behind a VAT refund is to encourage tourism and provide a benefit to travelers. It allows you to recoup some of the taxes paid on eligible items, putting money back in your pocket. However, VAT refund rules can vary from country to country, so it’s essential to familiarize yourself with the specific regulations of the place you’re visiting.

VAT Refund Rules

When it comes to VAT refunds, understanding the rules and eligibility criteria is crucial for travelers seeking to recoup some of the taxes paid on their purchases. Here, we’ll delve into the basic rules and shed light on key considerations:

1. Eligible Purchases

VAT refunds typically apply to goods that you’re taking out of the country and not using within that country.
Common eligible items include clothing, electronics, souvenirs, and other tangible goods.
Services, consumables, and certain high-value items may not be eligible.

2. Minimum Purchase Amount

Many countries impose a minimum purchase threshold for VAT refunds. You must spend a certain amount on eligible items to qualify.
The minimum purchase amount can vary, so check the specific requirements of the country you’re visiting.

3. Time Limit

There’s usually a time limit for claiming VAT refunds. You’ll need to apply for the refund within a specified timeframe from the date of purchase.
This period can vary but is often several months.

4. Proof of Purchase

Travelers must retain their original receipts, which should clearly show that VAT was paid on the items.
Ensure that the retailer provides a proper VAT invoice.

5. Departure from the Country

VAT refunds are typically processed at the airport when you’re leaving the country. You’ll need to show both the purchased goods and the associated receipts at the VAT refund desk.
Customs authorities may inspect the items to verify that they’re leaving the country with you.

6. Specific Limitations

Some countries have specific rules and limitations. For instance, certain items like jewelry or luxury goods might have different refund rates or requirements.
Look out for special procedures or restrictions related to duty-free shopping zones within the airport.

7. Refund Methods

The refund can be provided in different forms, including cash, check, or a credit to your credit card.
Be prepared for administrative fees that may be deducted from your refund.

8. Keep Documentation

It’s essential to keep all relevant documents, such as the refund forms provided by the retailer and any customs stamps, as these may be required to complete the refund process.

How to Get Your Refund?

Claiming a VAT refund at the airport or another designated point is relatively straightforward. Here’s a step-by-step guide to help travelers navigate the process:

Shop Wisely: Make eligible purchases during your trip, ensuring they meet the minimum spending requirements for VAT refunds.
Keep Your Receipts: Retain original receipts that clearly indicate VAT paid on the items. The retailer should provide a proper VAT invoice.
Request a VAT Refund Form: Ask the retailer for a VAT refund form or tax-free shopping form. Complete the form with accurate details, including your contact information.
Visit Customs: Before checking in for your departure flight, go to the customs desk or designated tax refund point within the airport. Be sure to have your purchased items, receipts, and passport on hand.
Inspection: Customs authorities may inspect your items to verify that they are indeed leaving the country with you.
Stamp of Approval: Present your completed VAT refund form, along with your receipts and purchased goods, to customs. They will inspect and stamp the form, confirming your eligibility for a refund.
Refund Desk: Head to the VAT refund desk, usually located in the departure area, after clearing customs. Submit your stamped VAT refund form.
Choose Your Refund Method: Select your preferred refund method, which can be in cash, by check, or credited back to your credit card. Some airports may have multiple refund counters for different methods.
Processing Fees: Be aware that some administrative fees may be deducted from your refund amount.
Keep Documents Safe: Safeguard all relevant documentation, including the refund form and customs stamps, as they may be required for future reference.

For a successful business trip, making the most of VAT refunds can help offset expenses and make your journey more cost-effective.

Simplifying the Process with airssist

We are your trusted partner in streamlining the VAT refund process for travelers, offering personalized assistance that ensures convenience and efficiency. With airssist’s expert guidance, travelers can navigate the complexities of VAT refund regulations with ease. We not only save valuable time but also offer multiple refund options, making it a stress-free experience, particularly beneficial for busy business travelers. Our seasoned team provides valuable insights, allowing you to maximize your refund potential and focus on your stress-free business travel goals.

Unlock Travel Savings

Unlocking travel savings, particularly through VAT refund airport opportunities, is a savvy way for travelers to make the most of their international journeys. By grasping the ins and outs of Value Added Tax (VAT) refunds and the assistance available, travelers can transform routine shopping into a strategic means of stretching their travel budget.

FAQs on VAT Refund at Airport

1. who is eligible for a vat refund.

Tourists visiting a foreign country can often claim VAT refunds on eligible purchases they're taking out of the country.

2. Is There a Minimum Purchase Amount for VAT Refunds?

Yes, many countries have a minimum spending requirement. Check the specific amount for your destination.

3. How Long do I Have to Claim a Refund?

The timeframe varies, but you typically need to apply within a few months of the purchase.

4. What's the Refund Processing Time?

Processing times can vary, but refunds are often issued at the airport when you depart.

5. Are There Administrative Fees for Refunds?

Some refund providers deduct administrative fees from your refund amount.

6. Can I Claim VAT Refunds for Business Expenses?

Business travelers may be eligible for VAT refunds on certain business-related expenses. Check with local regulations.

7. Are All Items Eligible for a Refund?

No, only certain goods qualify. Common eligible items include clothing, electronics, and souvenirs.

Note : Please note that the information on this page is generic & subject to change due to fluctuations in airport services. Kindly confirm service availability with our team, as offerings may vary daily.

Send Inquiry

01. welcome.

airssist offers a stress-free airport experience through personalized Airport VIP Services.

02. SEARCH BY CITY

03. latest entries.

The Need for Airport Fast-Track and VIP Assistance at Istanbul Airport for Transit Travelers June 11, 2024
Facing Flight Delay in Juan Santamaría Airport June 11, 2024
Family TSA PreCheck: Streamlining Airport Security for Hassle-Free Family Travel June 11, 2024
The Importance of Securing Your Corporate Limousine Service June 5, 2024

Need help? Call +971 4 456 1940

[email protected]

Dubai, United Arab Emirates

Meet & Greet

VIP Terminal

List With Us

Amendments, Refund & Cancellation Policy

Typically replies within minutes

Any questions related to What is a VAT Refund at the Airport??

WhatsApp Us

🟢 Online | Privacy policy

WhatsApp us

VAT refunds 101: How to save on shopping in Europe

Tourists and locals browse shops in Paris.

When visiting Europe, you'll find that many goods and services are assessed a "value added tax," or VAT. It's a tax on consumption rather than income, and it ranges from 15-25%. If you pay this tax when shopping abroad, you can often get your money back after you've returned home, since travelers are typically entitled to a refund for the VAT portion of prices for goods. But getting that refund can be a headache. Here are 10 things you need to know about claiming VAT refunds.

Refunds from goods, not services

Countries generally exempt exports from VAT. So when you buy merchandise or other goods as a tourist, what you take home is considered an export. Accordingly, you are entitled to a refund for the VAT portion of the price.

On the other hand, when you stay in a hotel or eat a restaurant meal, those services are consumed locally rather than exported. Accordingly, tourists are not entitled to VAT refunds on those purchases. Some business travelers are allowed to recover VAT on services, but the process is so complicated that only large corporations with heavy business travel ever try to recover it.

VAT can be big

VAT is the English-language term; other terms include IVA, TVA, moms, MwST, and a handful of unique local terms. EU (much of Western Europe) rules require that member countries impose a VAT of at least 15%; most rates are in the range of 19-25%. Many countries exempt some purchases entirely or apply reduced percentages on "essential" purchases such as food, rent, transportation, and medical services. A few countries also exempt certain regions from VAT or apply reduced rates because of quasi-independent status or to encourage economic development. Among Europe's reduced- or no-VAT areas are the Aegean Islands, the Azores, the Canary Islands, and the Channel Islands.

VAT rates in Europe's four non-EU countries are 25.5% in Iceland, 25% in Norway, 8% in Switzerland, and 18% in Turkey, again with some exempted or reduced rates.

Keep in mind that the VAT rate is the amount added to a pretax base price, not a percentage of the final price. Thus, a 20% VAT rate amounts to 16.7% of the purchase price.

It's included in the price

As a practical matter, merchandise prices you see in stores almost always include VAT. So do posted hotel rates and restaurant prices. The general rule is that what you see is what you pay. Online travel agencies (OTAs) usually post hotel prices inclusive of VAT—but not always, so check the fine print! Also, some localities impose the equivalent of sales taxes, in addition to VAT, on hotel accommodations, but they do not include these in the posted price; these additional taxes are usually quite low.

Your goods must leave the country

Most European countries allow you to recover VAT when you "export" an item. But you must prove that the goods actually left the taxing authority before collecting your refund. (For countries in the European Union, this means you must leave the EU, not just cross an internal EU border.) If you leave by plane, you have to show the goods after you pass through the customs formalities.

To qualify for a refund, the goods must be new and unused. If you buy some high-fashion accessories in Paris, for example, you shouldn't use them until you leave the EU.

There are minimum qualifying amounts

Many countries establish a minimum price per item or daily value per store to qualify for a VAT refund. This minimum ranges from zero in Ireland, Germany, and the U.K. to CHF 300 (about $333 USD according to XE.com) in Switzerland, €175 (about $237) in France, €155 (about $210) in Italy, €125 (about $169) in Belgium, and €90 (about $122) in Spain.

Where to buy

Buy from stores that handle VAT-refund paperwork. Most stores that do this post a "Tax Free" or similar sign somewhere on a door or window; big department stores often have special VAT offices. On the other hand, street vendors, sidewalk artists, many small-town stores, and such generally don't provide this service, so you're out of luck when you buy from them.

When you buy, have the merchant provide the necessary paperwork, sometimes called a "cheque," and complete the paperwork before you leave the store. (You'll probably have to prove that you're from outside the country or VAT area.)

When you leave the EU or the country in which you bought the items, take the merchandise and the paperwork to the border station and have the documents stamped by a local customs agent. Typically, the agent will ask to see the items, so don't pack them in checked baggage—or, at least, be able to check bags after you've cleared customs. This is critical: You won't get the refund without the stamp.

Work with your merchant

The easiest way to get a refund is to have the merchant handle it at the point of sale. Some merchants ask you to sign two credit card chits: one for the pre-VAT price and another for the VAT. You still have to do the paperwork and have it stamped, but when you clear the checkpoint, you just mail the completed paperwork to the merchant to prove that you really took the goods out of the area. When the merchant gets the paperwork, he or she tears up the credit card slip for the VAT. Alternatively, you sign one chit for the full price and the merchant later refunds the VAT to your card.

You can also avoid VAT by having a merchant ship the goods to you directly at your home address. In most cases, however, this isn't a good solution. Shipping charges can be very high, and you have to pay U.S. duty, even if you haven't used up your import allowance.

Let the pros do it

Two agencies specialize in facilitating VAT refunds. Typically, you want to shop at stores that participate in one of these agencies' programs; this will be displayed on a sign. Go through the purchase and customs paperwork, as described. Then, after passing through customs and getting your paperwork stamped, find an agency office to process the refund. The big agencies maintain refund desks in the departure areas of major international-gateway airport terminals, at some ship and ferry terminals, and at some downtown offices. Typically, you have a choice of getting a cash, check, or credit card refund. These outfits generally deduct as much as 30% of the refund amount as a fee for services.

Global Blue is the largest; it operates throughout Western Europe, as well as in several Eastern European countries, Argentina, Japan, Morocco, Singapore, South Korea, Turkey, and Uruguay. Premier TaxFree operates in a limited number of European countries but covers Jordan. Check the agencies' websites for more details.

Buy at tax-free airport stores

You can avoid paying VAT by waiting to buy in a "tax-free" airport store, usually located after the departure formalities at major international airports. The post-customs areas of many big European airports are now more like upscale shopping malls than airports. But store prices at most airports are pegged to be just a little below local "high street" VAT-inclusive prices, not at the local price minus the VAT. Those fat markups help fund the airport.

Beware of the gotchas

As noted, the paperwork and the customs stamp are critical to the process. Unfortunately, you can sometimes miss out on the chance to comply. One way to miss out is to buy from a supplier who doesn't do the paperwork. Independent artists, street merchants, and many other sellers don't participate in the programs and don't provide paperwork.

You can also miss getting the paperwork if you cross an unattended border. These days, you can pass out of a tax zone without encountering any customs office or official at all—for example, when you drive a rented car or take a train or bus through a lightly used border crossing. If you fly home from Geneva but return a rented car on the French side of Geneva International Airport, you'll find that the customs kiosks in the corridor between the French and Swiss lobbies of the terminal building are generally unattended by either country.

Some countries have work-arounds for these problems. Check the agency websites for details, preferably before you encounter a problem.

Canadian Visitor Tax Refund

The canadian foreign convention and tour incentive program (fctip) , if you've recently come from abroad to visit our beautiful country, you could get back some of the money you spent here thanks to canada's foreign convention and tour incentive program, international tourists or non-residents may be eligible for a tax rebate on the goods and services tax (gst) and/or the harmonized sales tax (hst) paid on select tour package components, foreign convention supplies and exhibitor purchases. .

Who Qualifies for the FCTIP Refund?

Royal Canadian Mounted Police Non-resident individuals, organizations, businesses or tour operators not registered for the GST/HST, on short-term accommodations and/or camping accommodations included in an eligible tour package.
Foreign convention sponsors plus convention organizers and exhibitors not registered for the GST/HST, for the GST/HST paid on select services and/or facilities used during the course of conventions held in Canada.

Please note: the FCTIP no longer offers a GST/HST rebate to non-residents for the Canadian accommodation portion of eligible tour packages purchased after March 22, 2017. However, the rebate may still apply to tour packages or accommodations supplied between March 22, 2017 and the end of 2018, if the amount owing for the provision is paid in full prior to January 1, 2018.

A rebate for certain costs related to foreign conventions continues to be available the under the Foreign Convention and Tour Incentive Program.

For more information on the FCTIP: visit the Foreign Convention and Tour Incentive Program (FCTIP) website.

You must be a non-resident of Canada when the rebate is filed
You must spend a minimum of $200 Canadian before taxes on a tour package to be eligible for a tax refund (the cost cannot include property and services included in the tour package that are not subject to tax, such as overseas transportation services)
You must not purchase the eligible tour package for any resale business purposes (except for tour operators in the business of selling tour packages)
As a certified non-resident tour operator, you must have sold the eligible tour package to another non-resident individual
You must provide documentation showing proof of eligibility for the rebate
Of the GST/HST paid on eligible tour packages, 50% of the taxes can be claimed

For detailed information on tour package rebates: visit GST/HST rebate for tour packages.

To download the application form for tour packages: go to GST115 GST/HST Rebate Application for Tour Packages.

As a foreign sponsor or non-registered organizer, you can make an FCTIP rebate claim for the GST/HST paid on convention facilities and related supplies
As a foreign exhibitor, you can make an FCTIP rebate claim for the GST/HST paid on the exhibition rental space as well as related supplies that don't include food, drink or catering, when obtained from a GST/HST registrant who is not the convention sponsor
Of the GST/HST paid on a convention facility, 100% of the taxes can be claimed
Of the GST/HST paid on convention supplies that don't include food, drink and catering, 100% of the taxes can be claimed
Of the GST/HST paid on convention supplies related to food, drink and catering, 50% of the taxes can be claimed
You must provide copies of all supporting documents along with your rebate claim (e.g.: convention schedule, event program, receipts and invoices showing GST/HST payments, hotel bills, proof of exhibition space rental)

For detailed information on foreign convention and non-resident exhibitor rebates: visit GST/HST and QST rebate for sponsors of foreign conventions, organizers of foreign conventions, and non-resident exhibitors.

To download the application form for foreign conventions and non-resident exhibitors: go to GST386 Rebate Application for Conventions.

Contact Information

Prince Edward Island Tax Centre, 275 Pope Road, Summerside PE C1N 6A2, CANADA.

While travelling, be sure to keep all eligible receipts and upon your return home, send in your receipts and completed application, signed and dated.

To check on the status of your FCTIP rebate: call 1-800-959-5525 from within Canada or from the US, and 613-940-8497 from outside Canada and the US.

More GST/HST Rebates

Commercial goods and artistic works exported by a non-resident

Taxable sale of real property by a non-registrant

National Internal Revenue Code of 1997

Tax Code App

Tax Calendar and App

100 years of trusted service

Corporate Sustainability Report

Scholarships

Loading Results

No Match Found

VAT refund for tourists

Marion Castañeda Tax Senior Manager, PwC Philippines 28 Jun 2023

After the Director-General of the World Health Organization declared an end to COVID-19 as a global health emergency, many of us grew eager to return to life as we knew it before COVID-19. Tourism was one of the hardest-hit industries during the height of the COVID-19 pandemic due to the mobility and international travel restrictions that were aimed at reducing the spread of the virus. Now, although many of us remain cautious and continue to wear face masks despite the lifting of most mask mandates, “revenge travel” — to make up for lost time — is a high personal priority for many.

While there are broader factors that will boost tourism (airport capacity and infrastructure, to name two), one proposal aims to improve our attractiveness as a travel destination from a tax perspective. Under House Bill (HB) No. 7292, non-resident tourists would be allowed to obtain a value-added tax (VAT) refund on their purchases of goods worth at least P3,000. The bill was approved by the House of Representatives on third and final reading, and the President himself has signaled his backing for the proposal in principle.

INTERNATIONAL PERSPECTIVE The concept of recouping VAT or similar consumption taxes on foreign tourists’ purchases is not new. In fact, according to the House Ways and Means Committee Chairman, we are one of the last few Asian destinations that do not have a tourist VAT refund system. To better understand this proposal, let’s take a brief look at some of our neighbors.

In Indonesia, Malaysia, Singapore, Thailand, and Vietnam, the general procedures can be outlined as follows: 1) obtain and keep the tax invoices for eligible purchases; 2) show travel documents together with the invoices and the goods purchased (and not consumed) to the refund counter at the airport; and 3) claim the tax refund, most commonly in cash (local currency). Naturally, each jurisdiction has its own set of procedures and rules regarding controls (some have specific “tax-free” shops), purchase or tax amount thresholds, the number of days between when the purchase was made and when the refund is claimed, and even the actual refund mechanism (some allow refunds via credit card reverse charge). Nevertheless, the overarching procedures appear quite similar.

Outside of ASEAN, Taiwan seems to have similar procedures as outlined above, albeit with an option to use an “E-VAT Refund Machine” instead of proceeding to a refund counter. Interestingly, Japan has a drastically different approach: either a) pay for the purchase with consumption tax already deducted upon presentation of a passport, or b) obtain a refund by visiting the designated tax exemption bulk deduction counter (in-store, not at the airport) and presenting the purchased goods, receipt, and passport.

CURRENT PHILIPPINE VAT RULES The purchase of goods within the Philippines is generally subject to 12% VAT. As an indirect tax, VAT is passed on to and shouldered by the buyer. As a tax on the “value added,” the ultimate consumer or end-user primarily bears the cost of VAT. This burden is especially felt by individual buyers, who are typically not VAT-registered and do not have the benefit of claiming input VAT credits on their purchases.

The proposal for VAT refunds on tourist purchases would add Section 112-A to the Tax Code, the salient portions of which read as follows:

“SEC. 112-A. TOURIST VAT REFUND. — A tourist shall be eligible for a value-added tax (VAT) refund on goods purchased from accredited retailers in the Philippines if such goods are taken out of the country within sixty (60) days from the date of purchase, and the value of goods purchased per transaction amounts to at least three thousand pesos (P3,000.00) …

For purposes of this section, a ‘tourist’ shall refer to a foreign passport holder, who is a non-resident individual not engaged in trade or business in the Philippines.”

The proposal seems simple enough. Tourists who are foreign nationals and not residents of the Philippines can refund the 12% VAT imposed on goods that they purchase within 60 days before they leave the country. The bill authorizes the Secretary of Finance to promulgate the rules and regulations for the law’s implementation. It appears that the legislators prefer giving leeway to the executive branch as to the exact mechanics of the VAT refund process.

POINTS FOR CONSIDERATION According to the Presidential Communication Office, the VAT refund program for foreign tourists is targeted for implementation by 2024 and is billed as an effort to boost tourist arrivals. The counterpart Senate bill still faces hearings at the Senate Committee on Ways and Means at this writing. Nevertheless, here are a few salient points to consider about the pending measure:

1) Administration: With the ultimate goal of boosting tourist spending in mind (thus helping retailers generate more sales and growing our economy), the government should ensure that rules or requirements are simple to comply with for retailers.

2) Convenience: From the foreign tourists’ perspective, a tedious process for obtaining a VAT refund will discourage them from applying in the first place, in turn discouraging them from spending. It bears highlighting that, at 12%, we have the highest VAT rate in ASEAN.

3) Safeguards : As a refund program, this measure will likely entail funds to be programmed into the government’s annual budget. As with any government-funded measure, policies for transparency and governance must be strictly enforced.

As we welcome foreign visitors, we can, in addition to showing them a great time at our beaches and other destinations, perhaps they will also buy more “pasalubong” for their loved ones back home — VAT-free, if this proposal becomes law.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

This article was originally published in BusinessWorld.

It's All About Italy

VAT Refund 101: What is it and How to claim your VAT Refund

The Dollar to Euro exchange rate has been very favorable for visitors to Italy over the last couple of years so you get much more Amalfi Coast or Roman holiday for your money than you used to. But did you know you could be saving even more if you take advantage of the tax-free shopping, too? It could be as much as 20% off your bill. That’s because Italy, just like its European neighbors, charges VAT (value added tax) on many of the things you’ll spend money on while on vacation. And the good news is that if you’re a non-European resident, you don’t have to pay the tax. It’s not quite as easy as just knocking off 20% at the checkout counter, but claiming your VAT refund should definitely be added to your holiday to-do list. Here’s everything you’ll need to know about tax-free shopping in Italy .

What is VAT?

Value added tax (VAT) is a state tax applied to food, accommodation and consumer goods. It’s charged at varying levels across different European countries since each territory sets its own VAT. Italy’s VAT or IVA (Imposta sul Valore Aggiunta) rate is around 20% depending on what you’re buying.

But because the VAT or IVA is incorporated into the price tag of pretty much everything you buy, you could end up leaving quite a bit more money behind in Italy than you need to unless you request a VAT refund.

Tax-Free Shopping for Tourists

So if you’re planning a shopping trip to Milan for its world-renowned fashion, or fancy a unique Murano glass sculpture as a souvenir, there are a couple of ways that you can shop tax-free.

First, look for the “ Tax-free shopping ” sign. Shops displaying it are already set up to make your spending simple and easy. Very occasionally, the shop will deduct the VAT at the checkout counter if you present a non-EU passport, but this really is an exception.

Even if you don’t strike it lucky with an immediate discount, the process is pretty simple: all you need to do is ask for a fattura from the shopkeeper when you pay. This is a separate invoice from the receipt, and should include your name (so keep your non-EU passport with you) and the details of how much IVA you’ve paid. It’s a little bit of bureaucracy, but will ensure your documents are correct when you come to claim your VAT refund.

You also need to ask for a blank, tax-free form from the shop keeper since you’ll need to complete one and take it to Customs at the airport when leaving the European Union.

And even if you don’t spot a tax-free shopping sign, you can still shop tax-free. Just make sure you tell the shop assistant that you want to reclaim your VAT, and keep your receipt and the fattura.

Tax free tip: before you leave the shop, make sure you have four things – your purchases (obviously!), your cash register receipt, the fattura invoice and, where available, the tax-free form.

Who and what qualifies for a VAT refund?

VAT is charged on a range of goods and services including food, accommodation, gas, clothing and jewelry. But not all the VAT is refundable and not everyone is entitled to claim it so here are the key points to remember for a successful VAT refund:

You must be a non-EU resident – i.e., the permanent address on your passport must be outside the European Union.
The goods you buy must be for personal use only.
Your purchases MUST NOT have been opened , worn or used before you leave the country so don’t wear that new designer watch to the Customs office! This is crucial.
All your unopened purchases must be in your hand luggage in case Customs asks to inspect them. If they are too big to keep in your hand luggage, contact the local Customs office before departing
Purchases must have a value over €154.95 – or the total spent in one shop at the same time must be over this value. It can be worth buying several things in one shop instead of spending €30 in different shops and losing the VAT refund.
And finally, you must be leaving the European Union within three months of the date of your purchase

Claiming your VAT Refund

So now that you have a beautiful new pair of Prada shoes to complete your outfit, you have a little bit of paperwork to do before you go home.

You will need to take your cash register receipts, fattura invoices, completed tax free form, non-EU passport and all your unopened purchases with you to the Customs office or Tax Refund agency at the airport or port from which you’re departing.

Increasingly, the office is easy to spot, but if you have a lot of purchases to declare it may be worth adding a little time at the airport just to be sure. Don’t forget, the VAT refund can be as much as 20% of your purchase price, so if you’ve been exercising your credit cards, it is worth reclaiming!

When you get to the front of the dedicated VAT refund line, you’ll need to present all your paperwork and be prepared to show your purchases if required. Assuming everything is in order, the Customs officer will stamp your papers. But you’re not done yet!

If you’ve bought your goods through shops who work with tax-free shopping agencies such as Travelex, Global Blue or Premier Tax Free, for example, you may get a refund directly to your credit card – or in cash – minus a small handling fee, straight away at the airport.

If not, you will need to send the stamped receipts back to the shop where you made your purchases; they will then refund your VAT. This will normally take 2-3 months, although it can take longer. While you’re waiting, just keep that 20% tax bonanza in mind!

Get ready to shop!

Ultimately, we all know that Italy has plenty to offer visitors, from its unrivaled historic heritage, to its breathtaking artwork and picture-postcard landscapes. It’s also renowned for its designer shopping and high fashion. Our travel experts can help you book an itinerary that incorporates all the sights and historic highlights, plus time to shop too. And as you check out the countryside, cuisine and couture, keep in mind that you could also be taking home a whopping 20% VAT refund, in addition to your fabulous trip. Or you could do 20% more shopping and get much more Italian bang for your American buck! It just takes a simple conversation in the shop, a small form and a visit to Customs at the airport. What could be easier? Buon viaggio, and happy tax-free shopping!

Why book with Select Italy

We have over 23 years of experience providing luxury vacation destinations throughout Italy.

Our industry expertise, exclusive access to accommodations, handpicked tour guides, and unique vacation destinations differentiates Select Italy and allows us to create the best guest experience for you.

Expert Service | Price Match Guarantee | 100% Peace of Mind

Read more about Why you should book with us.

Share full article

Supported by

The Best Way to Get a Refund When Your Airline’s Wi-Fi Is Terrible

We compiled shortcuts and links for every big U.S. carrier — and some little-known tips that should make it easier to get your money back.

An illustration of a man popping out of an airplane window and holding up a small satellite receiver.

By Ron Lieber

Ron Lieber loves to write a pointed complaint letter .

When an airline sells you a service, you should be able to receive a refund if it doesn’t deliver. But when is it not worth your time to even bother asking for one?

I asked this question last week when I had serious trouble connecting to Wi-Fi during an American Airlines flight. The carrier charged $17 for the privilege. I figured that the nuisance of getting the money back would cost more than $17 of time and aggravation.

Turns out I was wrong, according to over 100 readers who set me straight after I asked for advice in our weekly Your Money newsletter .

Nearly everyone who asked for a refund when the Wi-Fi didn’t work properly got the money back. Many had even cracked the code on how to make the request in under 60 seconds.

This week, I distilled their wisdom and talked to the major airlines and credit-card companies that were willing to answer my many detailed questions.

First, some guidance from the airlines on the fastest path to a refund request:

Alaska Airlines

Go to care.inflightinternet.com . You can chat with a representative on that page about a refund or contact the airline via the email address or phone number provided there.

American Airlines

I did end up asking American for a refund, without quite knowing how. After a few minutes fumbling around on its website, I found a place to send the airline an email. The response I received offered vague platitudes, but no compensation.

Readers suggested a different tactic: Find the email receipt for the Wi-Fi purchase, hit reply and ask for a refund. I tried that, too, and several hours later, I got an apology note and an “offer” of a discount code for a Wi-Fi “pass of your choice” for a future flight. Following readers’ advice, I politely rejected the offer. The reply said my refund had been processed.

According to American, the best place for any passenger to go to request refunds from one of its three Wi-Fi providers is the “ Wi-Fi and connectivity ” page on its website.

Delta Air Lines

Delta is rolling out free Wi-Fi for members of its frequent-flier program on all flights this year and next, and over 700 aircraft already have it. For people who pay and want to request a refund, head to delta.com/wifi and click on “customer support.”

JetBlue Airways

All internet access is free on the airline, but flight attendants, at their discretion, can offer a $15 credit if the Wi-Fi (or anything) is problematic.

Spirit Airlines

The airline has a page on its website just for Wi-Fi refunds.

Southwest Airlines

Send an email to the airline by going to: support.southwest.com/helpcenter/s/email-us . But keep in mind that the airline sometimes sends refunds proactively when it knows that things didn’t work well.

United Airlines

United will also send a refund notice via email when it senses trouble. If you’ve experienced Wi-Fi problems, the airline asks that you wait a few days for that note. If you don’t end up getting one, head to the “refunds” page on its website.

For issues when flying on a regional partner of the carrier, you’ll need to take things up with Intelsat, the Wi-Fi provider. Confused about whether it’s a United flight or a partner? You should see the Wi-Fi provider’s name listed on the receipt if you purchase the service.

Other Things to Know

Is it worth asking flight attendants for help?

Yes. They may be able to reboot the system and get the Wi-Fi working, or working better. On some airlines, they can also offer compensation on the spot.

How bad does the Wi-Fi have to be before I can ask for a refund without being a jerk?

I found Alaska’s response to be reasonable:

“While we do not have a firm policy on this, we would characterize poor Wi-Fi as lacking a connection for more than 20 minutes at any particular time during the flight, being unable to stream movies or video clips without multiple buffering events or being consistently unable to send or receive emails,” said Cameron Greenberg, a spokesman, in an email.

What happens if I just hit reply to the email receipt I received when I bought Wi-Fi and ask for a refund?

That can work, and it worked for me with American.

Can I push back if the first offer of compensation is a coupon or frequent-flier miles?

Yes, this often works, as I found with American. It’s worth trying, because a refund is money back in your pocket, while miles and coupons are easy to forget about. And the worst that can happen is that you get “no” for an answer.

Why not just dispute Wi-Fi charges with your credit card company if its customer service is better than the airline’s?

Generally, you’re supposed to give any service provider a shot at fixing the problem first.

I understand that it’s tempting to go straight to the card issuer, though. As I reported more than a decade ago in a column about the art and science of using your credit card company to dispute purchases with merchants, some industry watchers believe that big banks will automatically credit their customers during disputes over dollar amounts that are this small. In other words, they may not even bother contacting the merchant.

The airlines I talked to did not comment on this. Capital One and American Express said they investigated every dispute. Citi, which teams up with American on various credit cards, declined to answer the question. Chase did not address it.

Do airlines ever turn down a Wi-Fi refund request?

Rarely, it seems. But this is not an invitation to try to put one over on them. They may be keeping an eye on you.

“Whenever a guest reaches out, our provider vets their complaint,” said Mr. Greenberg of Alaska. That includes seeing whether the passenger consumed “substantially” more data than other passengers.

Ron Lieber has been the Your Money columnist since 2008 and has written five books, most recently “The Price You Pay for College.” More about Ron Lieber

A Guide to Better Managing Your Money

Making sense of your finances can be complicated. these tips can help..

Older people who stash large sums of cash in their homes think it’s safer there than anyplace else. Here’s how they could be creating huge headaches for their heirs.

Inheriting money after the death of a loved one while also grieving can be an emotional minefield, particularly for younger adults. Experts share ways to handle it wisely .

Either by choice or because they are priced out of the market, many people plan to never stop renting. Building wealth without home equity requires a different mind-set.

You may feel richer as you pay your mortgage down and home values go up. As a result, some homeowners end up with a lot of home equity but low retirement savings. Here’s the problem with that situation.

Can your investment portfolio reflect your values? If you want it to, it is becoming easier with each passing year .

The way advisers handle your retirement money is about to change: More investment professionals will be required to act in their customers’ best interest when providing advice about their retirement money.

Skip to main content
Keyboard shortcuts for audio player

You can get your passport renewed online again. Here's how it works

Jonathan Franklin

The U.S. State Department announced it has reopened its online passport renewal portal after several pauses to its system. Here, the cover of a U.S. Passport is displayed in Tigard, Ore., Dec. 11, 2021.

The cover of a U.S. Passport is displayed in Tigard, Ore., Dec. 11, 2021. Jenny Kane/AP hide caption

Paging all U.S. travelers (and introverts) — you may not need to make that trip in person to renew your passport after all.

The U.S. State Department announced Wednesday it is bringing back a trial service to renew your passport online, saying it will open the system for all online renewals soon.

As of now, the rollout for online passport renewals is restricted to certain times. Beginning during midday Eastern time, the State Department will accept a limited number of applications. Once the portal has reached its daily limit, it will close until the next day, according to the agency.

Canceled trips and no refunds: Passport delays are derailing travelers

In order to qualify for an online passport renewal, applicants must:

Be U.S. citizens and residents ages 25 and older who have already had an existing passport for 10 years; the passport must still be in the applicant’s possession (and not previously reported lost or stolen. It can, however, be expired.)
Not be changing their name, gender, date of birth or place of birth for the new passport.
Live in a U.S. state or territory.
Be applying for a regular tourist passport.
Be able to upload a recent digital photo.
Be able to pay the renewal fee online with either a debit or credit card.

Delays in passport renewals are putting a damper in Americans' summer travel plans

The State Department says those who are not eligible to submit their application online — or who choose not to do so — can always submit their renewal application by mail or in person at a passport agency or center.

State Department officials added that the processing times for an online passport renewal are the same as for those who choose to renew their passport through the mail.

The U.S. State Department first rolled out its online renewal system back in 2021 through an executive order from President Biden. But after several pauses, the program was paused indefinitely in March 2023.

Last year, the State Department faced a backlog of passport renewals and many Americans experienced delays. The agency described it as an “unprecedented demand for passports.”

In 2023, the U.S. issued more than 24 million passports , a record jump from the 22 million it issued the year before.

IMAGES

VAT Refund for Tourists Process
How to get Tax Refund in USA as Tourist, Resident for Shopping ? FAQs
Value Added Tax (VAT) Refund
How to get Tax Refund in USA as Tourist, Resident for Shopping ? FAQs
VAT Refund for Tourists Process
VAT Refund for Tourists Process

VIDEO

Places That Don't Feel Real Pt 18 😍😍 #shorts #travel #nature #trending #tiktok #explore #fyp #plac
Vat Refund
США Наглый русский делает возврат продуктов
VAT Refund at Dubai Airport #dubai #airport #trendingshorts
🤩VAT refund for tourist in Dubai Airport 😃… #dubaiairport #dubaitourism #traveltodubai #money
Take Refund on the TAX paid outside India #tour #tourist #tax #taxgupshup #incometax #income #taxes

COMMENTS

How to get your maximum VAT refund when traveling abroad
One of the biggest: VAT rates are much higher than those you pay in state and local sales taxes in the U.S. The EU's minimum standard VAT rate is 15% — far more than the combined state and local sales tax rates you'll find anywhere in the U.S. However, the average standard VAT rate in the EU currently sits around 21%.
How to get Tax Refund in USA as Tourist for Shopping? [2023]
In Texas, you need to have a minimum of $12 tax per receipt or combined receipts from the same brand stores. Technically, in Texas with an 8.25% sales tax, you need to purchase for at least $150 USD in a single store or brand outlet to be eligible for the refund.
COMPLETE guide to visitor tax refunds in the USA [2024]
Sales Tax Refunds in the US. The US Government, as clarified by US Customs and Border Protection (CBP), does not refund sales tax to foreign visitors. Sales tax in the US is a state matter and not federal. Therefore, refunds, if applicable, depend on the specific state where the purchase was made. This understanding is crucial for international ...
VAT: What is value-added tax and how do I get it refunded?
The idea of a value-added tax (VAT) is a foreign concept to most Americans. That puts us in the minority, though: VAT, a multi-layered tax applied at each stage of the manufacturing and marketing ...
Claiming Your VAT Refund in the USA: A Step-by-Step Guide
For information on tax refunds within the USA, including income tax refunds, taxpayers can visit usa.gov/tax-refunds. Tracking and Managing Your VAT Refund Claim Once the application has been submitted, businesses should track the status of their VAT refund claim and be prepared to provide additional information if requested by the tax authority.
How to Claim Value-Added Tax (VAT) Refunds by Rick Steves
And the process is fairly easy: Bring your passport along on your shopping trip (a photo of your passport should work), get the necessary documents from the retailer, and file your paperwork at the airport, port, or border when you leave. In Europe, standard European Union Value-Added Tax ranges from 8 to 27 percent per country.
Refund of foreign taxes paid (VAT) & (GST)
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. the United States does not participate in the VAT tax refund, and U.S. Customs and ...
Can US tourists get a sales tax refund when leaving the country?
Louisiana tax free shopping program - Individuals traveling in the US for less than 90 days and who hold a foreign passport, US Visitor's Visa and an international transportation ticket to leave the country can apply for a refund on sales tax paid at a few qualifying retailers. Learn more at the Louisiana Tax Free Shopping Program website.
A Guide to the Value Added Tax (VAT) Refund for Travelers
Only visitors-including U.S. tourists-are able to qualify for a VAT refund. Keep in mind, VAT is often factored into the price of a product (so a €100 dress with a 20 percent VAT rate might have ...
Value-Added Tax: Definition, How VAT Refunds Work
How value-added tax (VAT) works. Value-added tax is typically a percentage of the sale price. For example, if you purchase a pair of shoes for $100, and the VAT rate is 20%, you would pay $20 in ...
Tax-Free In The USA For Foreigners And Tourists From ...
Tax-Free Shopping in the USA - List of States. By 2023, only five states do not charge VAT on the purchase of goods: Alaska. Delaware. Montana. New Hampshire. Oregon. Although these states charge other forms of tax instead of VAT, the absence of a sales tax can make shopping more rewarding, especially for out-of-state visitors or tourists ...
Guide to VAT refund for visitors to the EU
Value added tax (VAT) is a multi-stage sales tax, the final burden of which is borne by the private consumer. VAT at the appropriate rate will be included in the price you pay for the goods you purchase. As a visitor to the EU who is returning home or going on to another non-EU country, you may be eligible to buy goods free of VAT in special shops.
How to Claim Sales Tax Back When Leaving the United States
Foreign visitors can only get sales tax refunds in certain places in the United States. Each state sets its own tax rates, refund rules and maximum refund amounts. ... residents must live in a province that has less than 3 percent sales tax or no VAT or GST on retail goods and services. As of 2019, Washington still offers a sales tax exemption ...
The Bag Lover's Guide to Value Added Tax Refunds in the Biggest
Remember all luxury goods bought at duty free after check in give you the full 20% vat refund . Heath row has wonderful stores including Chanel and Hermes. Best bargain for us visitors esp with the British pound taking a beating and a 30%currency devaluation this year.chanel purses now are 40%cheaper than state side
VAT refunds
The goods must be taken out of the EU within 3 months of their purchase. The tourist must provide a stamped VAT refund document proving this. The value of the goods purchased must be above a certain minimum (set by each EU Member State). Retailers can either refund the VAT directly or use an intermediary.
All About VAT Refund at airport
5. Departure from the Country. VAT refunds are typically processed at the airport when you're leaving the country. You'll need to show both the purchased goods and the associated receipts at the VAT refund desk. Customs authorities may inspect the items to verify that they're leaving the country with you. 6.
VAT refunds 101: How to save on shopping in Europe
VAT rates in Europe's four non-EU countries are 25.5% in Iceland, 25% in Norway, 8% in Switzerland, and 18% in Turkey, again with some exempted or reduced rates. Keep in mind that the VAT rate is ...
Canadian Visitor Tax Refund
Contact Information. Prince Edward Island Tax Centre, 275 Pope Road, Summerside PE C1N 6A2, CANADA. While travelling, be sure to keep all eligible receipts and upon your return home, send in your receipts and completed application, signed and dated. To check on the status of your FCTIP rebate: call 1-800-959-5525 from within Canada or from the ...
Tax-free shopping in the EU: Ultimate guide to VAT refund for tourists
VAT refund in Italy. In Italy, the standard VAT rate is 22%.After deducting the administrative fee and the fee of the tax refund company, you'll expect to receive an 11%-15.5% refund rate of your purchase amount, depending on how much you spent. And Italy also has one of the highest minimum spending requirements (€154.95).To get a tax refund, you'll need to present your passport or other ...
VAT refund for tourists
"SEC. 112-A. TOURIST VAT REFUND. — A tourist shall be eligible for a value-added tax (VAT) refund on goods purchased from accredited retailers in the Philippines if such goods are taken out of the country within sixty (60) days from the date of purchase, and the value of goods purchased per transaction amounts to at least three thousand ...
VAT Refund 101: What is it and How to claim your VAT Refund
Value added tax (VAT) is a state tax applied to food, accommodation and consumer goods. It's charged at varying levels across different European countries since each territory sets its own VAT. Italy's VAT or IVA (Imposta sul Valore Aggiunta) rate is around 20% depending on what you're buying. But because the VAT or IVA is incorporated ...
What are Italy's VAT refund policies for tourists?
Italy's VAT refund policies for tourists allow non-EU visitors to claim a refund on the Value Added Tax (VAT) they pay on goods purchased during their stay. To be eligible for a VAT refund, tourists must spend a minimum amount on goods, usually around 154.94 euros, in a single store in one day. The goods must be exported from the EU within ...
Cross-border VAT rates in Europe
Selling goods to the final consumer in another EU country A VAT threshold of EUR 10 000 applies to distance sales for customers in the EU. Below this amount, TBE (telecommunications, broadcasting and electronic) services and distance sales of goods in the EU may be subject to VAT in the EU country where the taxable person is established.
MSN
Get the ultimate guide to canceling a flight and getting a refund with major US airlines on MSN.
How to Get a Refund When Your Airline's Wi-Fi Is Terrible
Delta Air Lines. Delta is rolling out free Wi-Fi for members of its frequent-flier program on all flights this year and next, and over 700 aircraft already have it. For people who pay and want to ...
You can get your passport renewed online again. Here's how it works
In order to qualify for an online passport renewal, applicants must: Be U.S. citizens and residents ages 25 and older who have already had an existing passport for 10 years; the passport must ...

How to get your maximum VAT refund when traveling abroad

What is a VAT?

What are the refund rules?

Getting your refund

No VAT refund in the UK

Tips for maximizing your savings with a VAT refund

Research the country

Research the store

Allow extra airport time for your refunds

Consider shipping your purchases home to avoid VAT entirely

Make sure the refund is worth the trouble

Bottom line

How to get Tax Refund in USA as Tourist, Resident for Shopping ? FAQs

Do you get a Tax Refund for Shopping in the US at Malls or Online Stores?

Tax Refund: State Sales Tax vs. Federal Sales Tax?

The US Government does not refund Sales Tax to Visitors

Requirements to get Tax Refund in USA as Tourist or Resident

Tips for Tax Refund as a Tourist or Resident in the US

Common FAQs

Other Articles

Leave a Comment Cancel reply

Our top picks of timely offers from our partners

Value-Added Tax (VAT): What it is and how to get it refunded if you shop while traveling

What we'll cover

Bottom line

Does the United States have a VAT?

How to get a VAT refund

American Express® Gold Card

Welcome bonus

Regular APR

Balance transfer fee

Capital One VentureOne Rewards Credit Card

Why trust CNBC Select?

Claiming Your VAT Refund in the USA: A Step-by-Step Guide

Understanding VAT for Businesses in the USA

The Importance of VAT for US-Based Companies

Differences Between VAT and Sales Tax

Eligibility Criteria for VAT Refund in the USA

Qualifying Expenses for VAT Refund

Documentation Required for VAT Reclaim

The VAT Refund Process: A Detailed Walkthrough

Submitting Your VAT Refund Application

Tracking and Managing Your VAT Refund Claim

Overcoming Common Challenges in VAT Refund

Understanding and Avoiding VAT Refund Rejections

Best Practices for a Smooth VAT Refund Experience

Sarah Doyle CMO – Finotor Guardian of the Finotor matrix

You want to start a business ? Get Your free business plan template !

Knowledge Article

Refund of foreign taxes paid (VAT) & (GST)

Additional Information

Featured content

Subscribe to our free sales tax newsletter

Can US tourists get a sales tax refund when leaving the country?

There’s no federal US sales tax

Exceptions to the tourist sales tax refund rule

Diplomatic sales tax exemptions

The basics of US sales tax

Related posts

2024 sales tax holidays

Sales tax and non-taxable items

How to manage sales tax when drop shipping

How to collect sales tax through Square

Resale certificate, how to verify

Sales tax by state: Is SaaS taxable?

Sales tax by state: should you charge sales tax on digital products?

You’re our first priority. Every time.

Value-Added Tax (VAT): What It Is, How Refunds Work

What is value-added tax (VAT)?

How value-added tax (VAT) works

Is there VAT in the U.S.?

How to get a VAT refund

Tax-Free in the USA for Foreigners and Tourists from Other Countries

Is There a Tax-Free Program in the USA?

Tax-Free Shopping in the USA – List of States

VAT refunds

Cross-border VAT refunds to EU businesses

More information

Links to other VAT guides

VAT refunds to non-EU businesses