Brits could be reclaiming a fortune just for shopping on holiday—but most don’t even know the trick exists! This detailed guide reveals how you can claim VAT refund for UK holidaymakers on their overseas shopping in Europe and beyond, why so many are missing out, and actionable tips for getting your money back on every trip. Don’t finish your holiday without reading this!
What is a VAT Refund and Why Should You Care?
VAT (Value Added Tax) refunds are a little-known perk for UK residents travelling abroad. If you’re a non-EU resident and you buy goods to take home from an EU country, you may be eligible to reclaim the local VAT included in the purchase price. That can mean substantial savings—potentially hundreds, depending on your spending habits.
Despite Brexit and some policy changes, British tourists remain eligible for EU VAT refunds, and research shows more than half of UK travellers are still missing out (The Sun, ABTA VAT News).
Who Qualifies for a VAT Refund in 2025?
Eligibility is simple:
- You are a UK resident (outside the EU)
- You are buying goods (not services or consumables) for export
- Purchases are made at tax-free shopping retailers while traveling
- The goods leave the country with you within 3 months
- You have original receipts and complete the paperwork
See full eligibility conditions via the GOV.UK official tax-free shopping page.
Countries and Typical VAT Rates (2025)
The VAT rates you can reclaim vary by country. Here are the main EU rates for your travel planning:
- France: 20%
- Italy: 22%
- Germany: 19%
- Spain: 21%
- Hungary: 27%
- Finland: 25.5% (2025)
- Denmark, Sweden, Croatia: 25%
- Portugal, Ireland, Poland: 23%
- Netherlands, Belgium, Slovakia: 21%–23%
- Austria: 20%
- Luxembourg: 17% (lowest in EU)
See the full 2025 VAT rates at Eurofiscalis EU VAT List or Global VAT Compliance Europe Rates.
What Can You Claim a VAT Refund For?
Claimable:
- Unused goods for personal use (clothes, electronics, jewelry, designer items, gifts, etc.)
Not claimable:
- Services (hotels, tickets, car hire, excursions)
- Consumables (restaurant meals, groceries eaten locally)
- Items already worn, opened, or consumed before export
- Items not taken with you (left behind or shipped separately)
Find more guidance from the helpful guide at Wise: VAT Refund in Europe.
Step-by-Step: How UK Holidaymakers Can Claim VAT Refunds
1. Shop at Participating “Tax-Free” Retailers
Not every shop offers VAT refunds to non-EU visitors. Look for “tax-free shopping” signage or logos at the entrance or ask before you buy.
2. Bring Your Passport and Ask for the VAT Form
You’ll need to show your passport (proof of non-EU residency) at purchase and request a tax-free refund form and an official receipt.
3. Keep All Receipts and Complete Forms
Stay organized! Losing receipts or paperwork means no refund.
4. Do Not Use Your Goods Before Leaving
Goods must be new and unused until you export them—don’t wear, open, or use them before heading home.
5. Claim at the Point of Departure
At the airport, ferry, or train station, head for the “Customs” or “Tax Free” office before you check in your bags.
- Present your goods (sometimes inspected), receipts, completed forms, and passport
- Customs will validate or stamp your documents confirming export
6. Submit Your Claim
Submit your validated forms to a refund provider desk (like Global Blue, Planet) for on-the-spot cash, card, or cheque refund—or mail them later for a bank transfer.
More countries now support digital submissions (see Wevat’s VAT Refund App Guide).
7. Receive Your Refund
You’ll get most (but not all) VAT back. Refund agents take a commission, so expect 6–15% of your purchase value net back in your account.
For a visual, see the comprehensive process explained on Rick Steves: How to Claim VAT Refunds.
Real-World Examples: How Much Can You Get Back?
Example 1:
Sophie spends €1,000 on a designer handbag in Italy (VAT: 22%).
- VAT included: €180.33
- Likely refund (after fees): €120–€150
Example 2:
James buys €300 in electronics in Germany (VAT: 19%).
- VAT included: €47.90
- Likely refund after agent deduction: €30–€40
Example 3:
Amelia purchases €200 of perfume in France (VAT: 20%).
- VAT included: €33.33
- Refund after fees: €22–€28
You can experiment with your own numbers using Global Blue’s Refund Calculator.
Common Pitfalls and How to Avoid Them
- Forgetting customs validation: No stamp, no refund. Customs stamp is mandatory for every claim.
- Using or wearing items before departure: Must stay unused for eligibility.
- Losing paperwork: Always keep receipts and forms together.
- Missing minimum spend thresholds: Some countries require a minimum single-purchase amount (France: €100.01, Italy: €154.95).
- Leaving forms unsubmitted: Submit at the airport for fastest payment, or mail them on promptly if using third-party VAT refund agents.
Read ABTA’s essential VAT Refund FAQs for more must-know avoidance tips.
Can You Get a VAT Refund on Online Purchases?
If you buy online while abroad and export goods home as part of your trip, these may also be eligible (if claimed like a physical purchase). Documentation, receipts, and proof of export are vital. Learn more at ETIAS: Travel Tax Refunds.
Brexit Update: Is VAT Refund Available in the UK?
Important: As of 2025, the UK has scrapped its own tax-free shopping scheme for overseas tourists.
This means you cannot claim VAT refunds on goods bought in the UK, only on your EU and international trips. If you want tax-free savings, continental Europe is your best bet (PieVAT on Brexit & VAT).
Tech-Savvy? Use VAT Refund Apps and Digital Services
More European airports and retailers are integrating with digital VAT refund solutions, making the process faster and less stressful.
The Wevat app lets you scan receipts and manage claims digitally in France and some other EU countries.
Frequently Asked Questions (FAQs)
Q: Can I claim the VAT back on hotel, car hire, dining out, or entertainment?
A: No. Only physical goods you export home with you.
Read GOV.UK’s FAQ.
Q: Can I get a refund if I forgot to get my documents stamped at customs?
A: No, customs validation at exit is legally required. Always allow enough time before your flight.
Q: What are the fees?
A: Refund agents such as Global Blue, Planet, and Wevat charge a commission, typically 15–25% of your VAT claim. The more you spend, the better the net refund percentage.
Q: What if I travel between several EU countries?
A: Claim at your final point of exit from the EU; goods, receipts, and all paperwork must be available for inspection there.
Q: Is there a minimum spend per transaction?
A: Yes, and it varies. For France, the threshold is €100.01; Italy is €154.95; Germany has no threshold for tourists.
Find all rates at Eurofiscalis VAT Guide.
Useful External Resources
- Millions missing out: The Sun article
- ABTA VAT Refund Guide
- GOV.UK VAT Refund Help
- Eurofiscalis EU VAT Table 2025
- Global VAT Compliance Europe Rates
- Wise: VAT Refund Europe
- Rick Steves: VAT Refunds Explained
- Wevat: App VAT Refunds
- PieVAT: VAT refunds since Brexit
- ETIAS: VAT Refunds for EU Travel
Final Thoughts: Don’t Miss Out Again!
Don’t let the next holiday cost you more than it should. With VAT refunds, UK holidaymakers have a lucrative and legal way to save money shopping abroad—if you know the steps and use the right paperwork. Make your next European adventure even more rewarding by always claiming what’s yours!
For more clever travel savings tips, cashback offers, and personal finance hacks for UK families, don’t forget to explore the rest of Money Savvy UK.
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