Discover in this post how to request tax-free in Europe and receive taxes back on some of your purchases in the European Union!
You already know that shopping abroad is more advantageous than in Brazil, right? But what if I told you that there was a way to save even more on your European travel purchases?
I'm talking about tax-free, the possibility of requesting a refund on your purchases made within the European Union!
Never heard of tax-free? Don't worry, it's not a complicated process, but there are some rules you should follow to get your Euros back!
In this post, I explain everything about tax-free in Europe, when you can request a refund, and the complete and easy step-by-step guide to getting the tax value of your purchases back!
What is tax-free?
When purchasing a product, you normally pay taxes about this purchase. In the European Union, this tax is called VAT, an acronym for value-added tax, which in a free translation would be “added fee/tax value”.
This tax is already included in the price of the products, and when you receive an invoice, you can check as is paying taxes. The percentage of VAT added depends on the country you are visiting.
As a courtesy to travelers, the European Union offers the possibility of you receiving the VAT amount back, i.e. you may receive a refund for the tax charged on your purchases.
That's what it means tax-free, literally, getting the fees and taxes back.
Who can request Tax-free?
Tax-free is offered to all Visitantes of the European Union. If you reside in a country that is not part of the EU, you are entitled to a tax refund.
Even if you have dual citizenship, and entered Europe using your European passport, you may still be entitled to a refund, as long as your residence is in a country outside the EU.
Which countries offer tax-free?
All 27 countries that are part of the European Union offer tax-free. Please note that, since Brexit, the United Kingdom no longer offers the possibility of tax-free, with the exception of Northern Ireland.
If you are going through London and other European countries, see if it is worth leaving your purchases in countries that are part of the EU, to get a refund of the added tax.
Can I request a tax refund (tax-free) on all my purchases?
No. You can only request tax-free items that can be carried in your suitcase, and some countries may exclude certain categories of items. You can request tax-free for a luxury bag, for example, but not for an ice cream that was consumed during your trip.
Furthermore, each country has a minimum spending amount to claim tax-free. In Portugal, for example, the invoice must be at least €61 to be eligible. In Italy the minimum is €155, in France €100, and, since 2018, in Spain there is no minimum value.
You can request a refund for each of your purchases that reach the minimum value in the country, as long as the store where you made the purchase participates in the tax-free program. Normally, there is a sticker on the window, and the attendants themselves warn you about this possibility.
The refund request is also only valid until the end of the third month after purchase. If you make a purchase in the middle of April, for example, you will only get a refund if you leave the European Union by July 31st.
Will I receive a full tax refund?
No. Each country charges a tax amount, for example:
- Portugal: 23%
- Spain: 21%
- France: 20%
- Italy: 22%
To return this tax, they use third-party companies, which charge a percentage of the value for the service. Overall, you should get between 8% and 15% of the VAT back. Here is the value per country:
- France: 12%
- Italy: 13%
- Spain: 12.75%
- Portugal: 13.75%
- Germany: 11.4%
- Netherlands: 11%
Documentation required to obtain tax-free in Europe
It would be very practical if all that was needed was a product's invoice to request a tax refund. Unfortunately, you'll need a little more documentation to make these savings.
When making a purchase that exceeds the minimum value at a store that participates in the tax-free program, you will need to show your passport to prove that you live abroad. Then, the cashier will fill out a document with your details, purchase information and a registration code. Keep this document as you will need to show it at the airport when leaving the European Union.
Attention: To obtain this document, you will need to show your passport. If you have days in your travel itinerary dedicated to shopping, remember to take your passport with you, don't leave it at the hotel!
How to request tax-free in Europe (complete guide)
You must request tax-free at the airport where you will leave the European Union. This means that:
- If you are in Paris and are going to London before returning home, you must apply for a refund in Paris.
- If you are in Paris, and are going to make a connection through Madrid before leaving the EU, you must make the request in Madrid.
If you plan to make purchases, and plan to request a VAT refund, schedule your flights to allow enough time to complete the tax-free process. A one-hour layover, for example, before returning home, is unlikely to be enough.
When arriving at the airport, look for a kiosk tax-free, available at most European Union airports. This kiosk is usually located before of security control.
At the kiosk you must:
- Scan your passport
- Scan your flight ticket
- Submit the documents of each of your purchases
Some kiosks will already have all the information about your purchases, others you will need to enter the code available in the document provided by the store manually. Without this document it is impossible to get a refund, so always ask for it in the stores you visit.
If all purchases are validated, simply proceed to the security control. Otherwise, you will need to go through the country's customs, where you may have to show the items you purchased.
If the airport does not have a tax-free kiosk, it is likely that there is a specific counter for this service. Follow the signs or ask for directions at the information desk.
ATTENTION: Do not ship the items for which you want a tax refund, or at least wait until you have validated your purchases at the kiosk. If there is a problem with validation, you may need to go through customs and show the items you purchased. Without having the items to show for it, you will not get a refund! To make things easier, leave everything in a separate bag.
After passing security and passport control, you will be in the boarding area, where the kiosks of the third-party companies responsible for making the refund are located. Check the document provided by the store to identify the partner company, and go to the corresponding kiosk.
The refund is usually made at the same time, and you return home with the money in your pocket.
You may not be able to get a refund right away, such as if the company's kiosk is closed (they don't work 24 hours). In this case, you deposit your request in the kiosk's “collection box”, and they will proceed with the refund according to the method chosen by you. The options are usually bank transfer, credit card or check.
Remembering that requesting tax-free is only possible if you have the document provided by the store when making the purchase, and if you have validated your purchases at the tax-free kiosk or at customs, before going through security and passport control.
What is worth buying in Europe?
The truth is that many popular items, such as electronics and beauty products, are already cheaper compared to Brazil even at full price. With the tax refund, the price becomes even more attractive.
Without a doubt, what is most worth buying in Europe are luxury products, from brands such as Louis Vuitton, Gucci, Prada and Chanel. All of these brands are European, and offer better prices in the European Union than in the rest of the world. With VAT reimbursement, prices are even better.
A Louis Vuitton Neverfull MM, for example, currently costs R$11.100,00 in Brazil. In Europe, it costs €1500, including tax. Considering that you receive a 10% refund (a very low value), the purchase would cost €1350, which at the current price would be R$7335. A saving of almost R$3800 compared to the national value.
Other items such as electronics, especially from Apple, makeup and perfumes also offer good savings in relation to the price charged in Brazil. To know more, Read the blog post here with everything worth buying in Europe, with tips on various brands and products.
Conclusion
Shopping abroad usually pays off, but by going tax-free in Europe, you can save even more on your travel purchases!
All you need is to request a tax-free document when shopping, validate your purchase at the airport leaving the European Union, and request a refund at the kiosk after passport control! Super practical.
And you, have you already requested a refund for your purchases in Europe? How was the process? Tell me in the comments!
Frequently Asked Questions about Tax Free in Europe
In Portugal, when making purchases over €50, you must request the tax-free form at the store you are visiting. The attendant will request your passport, fill in some details, and give you a document relating to your purchase. At the airport, stop by a Tax Free kiosk and use the documents provided to validate all your purchases. After passport control, simply go to the kiosk of the company responsible for the tax refund to receive your refund!
When leaving the European Union, you can request a tax refund on your purchases at the airport of departure. To do this, have the tax-free document provided by the stores you visited, and the items purchased. Go to the tax-free kiosk, validate your purchases, go through passport control, and go to the kiosk of the company responsible for the refund.
No. Only items that you can carry in your suitcase, such as electronics, bags, clothes, perfumes, etc. Additionally, each country has a minimum purchase amount before you can request a tax refund.
Yes! Simply buy your products in a country that is part of the European Union, and at the time of purchase request the tax refund document. At the airport leaving the EU, go to a tax-free kiosk, validate your purchase, and after passport control, simply go to the kiosk of the company responsible for the refund.
Yes! If you want a refund, you must ask the store for the document relating to the tax refund of your purchase. Remember that not all stores offer this benefit.