We get money back for purchases over 25 euros when traveling around Europe and the world. And we don’t pay taxes.
Tax Free is an international value added tax (VAT) refund system. Travelers shopping abroad do not have to pay this portion of the cost of goods and services because they are not residents of other countries. VAT on goods purchased while traveling abroad can be refunded. As a rule, it is reimbursed for purchases of a certain amount in one store (or shopping center) on one day. You can return from 3 to 20 percent or more. It’s not easy to make sense of all this. And there may not be time. As a result, you lose money. We recommend preparing for your Tax Free refund in advance. Then it will be easy to arrange it.
What else you need to know about Tax Free
The system operates throughout the world, but is best developed in Europe. In addition to European countries, the tax can be returned, for example, in Turkey, Israel, Argentina, South Africa, Singapore, Mexico and other countries. Each of them sets a minimum amount that must be spent to return VAT. There may be several goods, but they must be paid for with one check. Some large department stores and shopping centers, such as London’s Harrods or Spain’s El Corte Inglés, count as one store.
So the minimum amount in Italy is 155 €, in Greece – 120 €, in Spain – 90 €, in Lithuania – 48 €, in Germany – 25 €. The VAT rate also differs from country to country and from one product group to another. However, the amount of tax does not mean that you will receive exactly this share of the amount spent. The operating company that helps return funds will take its percentage. The approximate cost of a return can be calculated on the website of one of the operators – the Swedish company Global Blue. Further we will talk mainly about her.
This is the world’s largest Tax Free refund company. Based in Sweden. Its offices (return points) are located in 37 countries. In second place is the Irish Premier Tax Free (20 offices). There are several other companies, for example, the Spanish trading house El Corte Inglés has its own Tax free system. Partly you decide who to return the money from, partly it’s a matter of chance. There are stickers on the doors and windows of stores, as well as on the cash registers – you can use them to determine which operator is which. Global Blue cooperates with 300 thousand stores around the world. In Barcelona there are 90% of them. That is, there are many shops. If there is no sticker, ask.
How to make purchases
Food and non-food products are considered separately – they cannot be “mixed” in the receipt; it is better to purchase goods from one of the groups up to the minimum amount, even if we are talking about 1 euro.
After paying for purchases at the checkout, ask the seller to issue Tax Free. In a small store this will happen there. There are special counters in shopping centers. You will be asked to fill out a short form, which will indicate all the information about the return: date of purchase, your passport details, home address with zip code, store details. See an example of filling out the Global Blue form here. You will need a foreign passport or a copy of it (required). All information must be triple checked. An error in a letter or number may cause refusal at the next stages of the return – do not relax, there are still several more.
Another, slightly faster way is the Global Blue personalized card (SHOP TAX FREE Card). It will already have all your data. The seller will count them from the card and print out the completed form. To apply for a card, register on the operator’s website. Previously, cards were plastic – they were delivered by regular mail. Since December 13, 2016, Global Blue issues only virtual cards. You can show it to the seller directly on your smartphone. But regular cards are still valid. It is important to remember that each card is individual. It cannot be transferred to another person, even close relatives.
What happens next: in some European countries, purchases are sometimes sealed with a special tape. The Tax Free receipt along with the check will be pasted on top. In this case, it is better not to open the purchases. However, even if they are not sealed, you should not unpack the boxes (or carry things) until you return home. The tax can only be refunded on goods that were not used in the European Union. For information on other countries, check in stores or on the Global Blue website in the “FAQ” section.
In addition, not all products can be returned Tax Free. “Returnable” categories include all industrial goods: clothing, shoes, jewelry, household supplies, watches, household and electronic appliances.
To the “non-refundable”: alcohol and tobacco, medicines, weapons, antiques, books and souvenirs, food, as well as various services. The exact lists of goods and services differ in each country. Or the refund amount for certain groups will be lower than for popular clothing, shoes and equipment. For example, VAT in Poland on medicines is only 8% instead of 23% for other groups of goods.
Tax Free can also be returned for purchases in online stores.
What to do at customs
At customs at the airport (or train station), check in for your flight, but do not rush to check in your luggage. Tax Free receipts and receipts from stores must be stamped at the customs service. This is a very important point – without stamps, they will not be considered valid, no matter where you go with them later. This way you confirm the export of goods from the country. Customs officers may ask you to show your purchases – so they cannot be checked in or unpacked. You should apply for Tax Free in the European Union only once in the last country, before flying home, or a third country outside the EU if you are traveling across several countries.
At large airports, customs can be located anywhere – arrive a few hours in advance. Another reason to take your time is the long queues during the tourist season or sales season. There may be many people wishing to return VAT, and you simply will not have time to go through all the stages of the return. At the same time, travelers agree that applying for Tax Free at night is more difficult than during the day – there may be no employees at customs, and in general there are fewer flights at night.
The Tax Free form completed in the store must be stamped within a certain period of time from the date of purchase, depending on the country. In some places this period is short, in others it is impressive. In Italy, the Czech Republic and Lithuania – three months, in France – six months, in Germany and Spain – four and five years, respectively. This means that during this time the product must leave the country once it was purchased. A receipt with stamps is also valid for a certain time: from a month (in Switzerland) to infinity (in Spain and Austria),
but in most European countries – three months. During this period you are entitled to a refund. Read on to find out how to do this.
How to get money
There are three main ways and one unexpected one:
1. At the airport, at the operator’s return points – they are located after security and customs. They must include representatives of the tax operator. The money is returned in cash or to the card account. If you choose the first option, the Global Blue service fee will be 3% and the total amount will be less than in the store receipt. If the second one – without it. Money is returned in the currency of purchase or in US dollars. If you bought in euros and returned in dollars, you will be charged a commission again. Therefore, it is more profitable to return funds not in cash, but to the card and in the currency of purchase – your bank will make the conversion itself (if necessary).
2. By mail yourself. To do this, place the Tax Free form with the receipt in a special envelope from the operator (ask in the store) – it should also have a customs stamp on it. Place the envelope in a box at the same return point, or send it by regular mail from your home country. This method is suitable for those who, for some reason, did not get to the operator after customs – they arrived at the airport late, or did not want to stand in line. The return address is on the receipt, envelope and on the Global Blue website.
3. In a bank that cooperates with operators. For Global Blue this is Bank Intesa. In Russia, returns can be made in four cities: Moscow, St. Petersburg, Pskov and Kaliningrad. As in the first case, Global Blue will charge a service fee of a few percent for cash returns. It is more profitable to return it to the card. Transfer times are standard: 3-5 working days.
Unexpected. In rare cases, Tax Free is ready to be returned to the store immediately after purchasing and filling out the form. But it will still need to be stamped at customs and the form will need to be sent from home by mail back to the store to confirm that the goods have been exported. If you do not do this within the prescribed period, funds will be debited from your card in the amount that has already been returned to you. This also applies to online purchases, but after the goods leave the country. For example, you spend 100 euros, export the goods (put stamps at the border),
confirm the fact of export, funds are returned to the card.
What will prevent the return
If all other conditions are met, they may refuse if you filled out the documents incorrectly: you made mistakes in the Tax Free receipt or did not stamp it at customs. The form should be filled out cleanly – without many corrections.
The same applies to the customs stamp – it should read the name of the checkpoint – this is important if you are returning money through a bank in your home country. Bank employees must read its name.
Another likely reason for refusal is incorrect dates. The Tax Free form and cash receipt must be issued on the same day. However, there are exceptions to this rule. For example, in Spain, purchases in one store on different days are added up. In Germany, products under the same brand are also counted as one receipt. It is impossible to learn the tax rules of all countries. To avoid confusion, find out about the return conditions in each specific country (store and each Tax Free operator) before making purchases.
Finally, you definitely won’t be able to get your money back via Tax Free if you are a tax resident of this country.
Personal experience
Evgeny Vasenev, UX designer, worked at Amazon, now traveling with his family around the world.
I returned Tax Free on my camera in Singapore through Global Blue. The camera is expensive – 4222 Singapore dollars (or 3100 US). Therefore, the tax refund turned out to be significant – 182 US dollars (rate – 7%). I looked for information on the Internet, contacted the store and asked if they do returns. When purchasing, they asked me for a passport, which I didn’t have with me, but a scan helped out. I was given a brochure that details where and how to get a refund: it even has a map of the airport to make it easier to find the Tax Free refund point. In Singapore, the kiosk is electronic, you can do everything yourself. I scanned the receipt and passport, chose the return method: cash or credit card – very convenient, no need to change the local currency to dollars. Everything took ten minutes, no more. In 10 days they should return the money to my card. The only thing that upset me was the large commission. My refund is $30.
What seemed unusual: in Singapore, not all goods are checked, but they checked my camera – it was in my backpack, it was unpacked, I had been using it for several days. But they didn’t check much – they just looked and that’s it. The check took place after customs, in the transit zone.
Three most important points:
1. Minimum purchase amount.
2. Have your passport with you or at least a scanned copy.
3. If the purchase is small but expensive, do not put it in your luggage, but take it with you, they can check it.
Elena Sergeeva, organizer of the “Travel Business” festival, St. Petersburg.
I applied for Tax Free for clothes and shoes in Spain. The refund amount should have been around 30-40 euros. I don’t remember the company, but it definitely wasn’t Global Blue, since the pick-up point at the airport was decorated in red colors, not blue. To return, you had to fill out a form, attach a receipt and check, put it all in a special envelope and throw it in a box at the counter – all this took about five minutes.
What seemed unusual: in the end the money was not returned (although other passengers warned me right away that this company did not send anything, but I decided to try my luck – as it turned out, in vain). I have never met representatives of this company; they usually have “silent” collection points with boxes, apparently so that no one has any questions. I didn’t try to contact them, because it’s not clear where to write, I don’t have any contacts left. Now I apply for Tax Free, mainly through Global Blue – I receive it in cash at the airport or in Russia.
Three most important points:
1. Buy goods in one place.
2. Keep the tags on things when leaving (they may check your purchases, but more often they don’t).
3. Before purchasing, ask if this particular store offers tax refunds (not all stores participate in the program).
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