From France to Italy and Finland, here’s a handy guide on VAT refunds and VAT rates around Europe to make your overseas shopping sprees a whole lot easier.
Europe is known for its high value-added tax (VAT), with some places charging up to 25%! Since it’s a tax on consumption, the amount is generally added to the store’s price instead of being added to the cash register. Fortunately, tourists can often reclaim VAT refunds on most purchases, making travel shopping all the more enticing. Read on as we cover VAT refund rates across Europe, plus a list of the best shopping spots to get your retail therapy covered!
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What is Value-Added Tax (VAT)?
Value-Added Tax (VAT) is a consumption tax added to goods and services in many countries. As a tourist, you can often reclaim this tax on most purchases, resulting in significant savings. The VAT rate varies by country, ranging from around 5% to 25% or more.
VAT refunds usually apply to items purchased for personal use such as clothing, electronics, and souvenirs. Services including hotel stays and dining are generally not eligible.
Reduced or super-reduced VAT rates will only apply to specific products covered by each country’s VAT Directive.
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How To Claim A VAT Refund
1️⃣ Make Eligible Purchases: Shop at stores that offer VAT refunds. Look for signs indicating tax-free shopping or ask the retailer
2️⃣ Request a VAT Refund Form: At the time of purchase, request for a VAT refund form from the retailer. You’ll need to fill out this form with details of your purchase
3️⃣ Show Proof of Purchase: Keep your receipts and the refund form. These will be needed when you leave the country
4️⃣ Get Your Forms Stamped: At the airport or border, visit the customs office to have your refund forms stamped. You may need to show the purchased items as proof
5️⃣ Submit the Forms: Submit the stamped forms to a VAT refund company at the airport, or mail them if required
6️⃣ Receive Your Refund: Choose your preferred method of refund (cash, cheque, credit card, etc.) The refund can sometimes be processed immediately, but it may take a few weeks if done by mail.
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❗️To Note:
There are several options as to how you’d like to be refunded — cash, cheque, credit card, or the card used for purchase. In the event a prepaid Mastercard can be used to facilitate your tax refund, your YouTrip card can be used.
However, different airports worldwide accept different cards and we are not able to advise with certainty that the YouTrip card can be used to process a tax refund at ALL airports. However, no worries! You can still choose from other refund options.
For Global Blue Tax Refunds, you may refer to their FAQ for accepted refund methods.
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Overview: VAT Rates & VAT Refund Rates In Europe
| Country | VAT Standard Rate | VAT Reduced Rates | VAT Refund Rate | Minimum spend |
|---|---|---|---|---|
| France 🇫🇷 | 20% | 10% and 5.5% | 12% | 100 EUR (~S$145.57) |
| Italy 🇮🇹 | 22% | 10% and 5% | 13%-15% | 154.95 EUR (~S$225.56) |
| Greece 🇬🇷 | 24% | 13% and 6% | 12.5%-14.75% | 50 EUR (~S$72.79) |
| Germany 🇩🇪 | 19% | 7% | 11.4%-13.6% | 25 EUR (~S$36.39) |
| Croatia 🇭🇷 | 25% | 13% and 5% | 14%-17.5% | 740 HRK (~S$143.73) |
| Hungary 🇭🇺 | 27% | 18% and 5% | 14%-19% | 63,001 HUF (~S$235.73) |
| Sweden 🇸🇪 | 25% | 12% and 6% | 13%-17% | 200 SEK (~S$25.44) |
| Slovenia 🇸🇮 | 22% | 9.5% and 5% | 14%-16% | 50.01 EUR (~S$73.24) |
| Finland 🇫🇮 | 24% | 14% and 10% | 13.25%-17% | 40 EUR (~S$58.58) |
| Denmark 🇩🇰 | 25% | – | 12.5%-13.7% | 300 DKK (~S$58.87) |
| Republic of Ireland 🇮🇪 | 23% | 13.5% and 9% | 13.75%-15.5% | 75 EUR (~S$109.81) |
| Poland 🇵🇱 | 23% | 8%, 5%, 0% | 13.63%-14.3% | 200 PLN (~S$68.88) |
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1. Croatia
VAT Standard Rate: 25% | VAT Reduced Rates: 13% and 5%
VAT Refund Rate: 14%-17.5% | Minimum spend: 740 HRK (~S$143.73)
Coming up on top of this list is Croatia. A beautiful country located just next to the world’s fashion capital, Croatia charges a standard VAT rate of 25% and is the best destination for tourists when it comes to shopping savings — with refunds as high as 17.12%!
The first reduced VAT rate is 13%. This applies to hotel accommodations, certain publications in magazines and newspapers, food products, child car seats, and catering services. The second reduced VAT rate of 5% applies to foodstuffs, books, medicines, cinema tickets, etc.
👉 Top Shopping Spot in Croatia: Arena Centar
Major shopping centres like Arena Centar in Zagreb are perfect for bargain hunters. If you’re someone who loves buying big brands on a budget, head there for the best deals.
Opening Hours: Daily, 9 AM – 9 PM
Address: UI. Vice Vukova 6, 10020, Zagreb, Croatia
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2. Hungary
VAT Rate: 27% | VAT Reduced Rates: 18% and 5%
VAT Refund Rate: 14%-19% | Minimum Spend: 63,001 HUF (~S$235.73)
Up next we have Hungary, a landlocked country in central Europe best known for its spa towns and hot springs. Hungary offers the second-best VAT refund rate of 16.8% despite its high tax rate of 27%.
The first reduced VAT rate is 18%. This applies to certain food products and entry to open-air music events. The second reduced VAT rate of 5% applies to certain basic food products, pharmaceuticals, books, internet services, hotel accommodations, restaurants, etc.
👉 Top Shopping Spot in Hungary: Vaci Street
As the top pedestrian shopping street, Vaci Street in Budapest features an abundance of restaurants, cafes, and retail stores. The shopping area stretches over 1km, starting from central Budapest in the historic Vörösmarty Square before reaching its end at Central Market Hall. There is no shortage of stores in this area, including Zara, Adidas, Flying Tiger, and Copenhagen!
Disclaimer: If you’re ever thinking of shopping in Hungary, do note that it has one of the highest minimum spending requirements in Europe — with purchases of at least 63,001 HUF (~S$235.73) qualifying for refunds.
Address: Váci utca, Budapest, Hungary
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3. Sweden
VAT Rate: 25% | VAT Reduced Rates: 12% and 6%
VAT Refund Rate: 13%-17% | Minimum Spend: 200 SEK (~S$25.44)
Image credits: Wikipedia
Third on the list, we have Sweden — a gorgeous country filled with abundant forests and lakes. Like Croatia, Sweden charges a standard VAT rate of 25% on its products. And when it comes to saving, tourists can receive up to 15.22% in refunds. It has one of the lowest spending requirements — with purchases as low as 18 EUR (~S$26.32) being eligible for refunds. Now that’s not a bad price to pay when it comes to hauling home your dream pieces from Ikea!
The first reduced VAT rate is 12%. This reduced rate applies to certain food products, hotel accommodations, restaurant and catering services, leather goods, clothing, etc. The second reduced VAT rate of 6% applies to passenger transport, cultural services (except cinema), books, etc.
👉 Top Shopping Spot in Sweden: Drottniggatan
When it comes to shopping, Stockholm is no stranger to the world of fashion and food. For those who wish to shop on a budget, head to the main shopping street Drottniggatan which is filled with restaurants, bars, and cafes. The street starts from Old Town and goes all the way to Observatory Park. In its middle, it holds the shopping mall giant, Åhléns City, and T Centralen station.
When it comes to brands, you can find all kinds of major Swedish and internationally established boutiques, such as H&M, Zara, Monki, and more! The best part about this street is that it’s located near several famous hotels, making it a tourist haven for finding brands on a budget.
Address: Åhléns City, Klarabergsgatan 50, 111 21 Stockholm, Sweden
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4. Slovenia
VAT Rate: 22% | VAT Reduced Rates: 9.5% and 5%
VAT Refund Rate: 14%-16% | Minimum Spend: 50.01 EUR (~S$73.24)
While Slovenia might not ever cross your mind when it comes to European destinations, the country offers a pretty good tax refund rate of 15.05% while charging a lower VAT tax of 22%. While it’s known for its scenic views, the small southeastern European country is also regarded as ‘The Ideal Place For Living’.
The first reduced VAT rate is 9.5%. This applies to foodstuffs (except alcoholic drinks), water supplies, pharmaceutical products, agricultural products, certain books, etc. The second reduced VAT rate of 5% applies to printed and electronic publications.
👉Top Shopping Spot in Slovenia: The Central Market in Ljubljana
A paradise for shopaholics, locals flock to the Central Market in Ljubljana to enjoy themselves to the fullest. Covering the open-air market in the Vodnikov trg and Pogacarnex trg squares, the Central Market offers the best of Slovenian products and catering establishments.
During the summer evenings, the market is transformed into a local festival. And what’s a festival without food and drinks? If you’re into Christmas shopping and festival vibes, the Central Market is a must on your list.
Opening Hours: Weekdays, 7 AM – 4 PM. Saturdays, 7 AM – 2 PM.
Address: Adamič-Lundrovo nabrežje 6, 1000 Ljubljana, Slovenia
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5. Finland
VAT Rate: 24% | VAT Reduced Rates: 14% and 10%
VAT Refund Rate: 13.25%-17% | Minimum Spend: 40 EUR (~S$58.58)
Making global headlines as the ‘Happiest Country In The World’, we definitely have to include Finland in this list of the best places in Europe for tax-free shopping. Charging a little less than the standard VAT rate, Finland’s tax stands at 24% and tourists can receive refunds of up to 14.83%.
The first reduced VAT rate is 14%. This applies to most food products, including catering and restaurant services, water, and pet food. The second reduced VAT rate of 10% applies to certain pharmaceutical products, books (both printed and digital), passenger transport, hotel accommodations, etc.
👉 Top Shopping Spot in Finland: Kamppi Shopping Centre
As far as Finnish cities go, Helsinki is a clear top choice for its range of goods and shops. Favoured for its convenience, you don’t have to venture outside of the city centre for an endless selection of malls, markets, and luxury stores.
Our top spot would be Kamppi Shopping Centre for its wide range of shops and fashion brands. It’s extremely convenient to visit with a tunnel connecting it to the neighbouring Forum shopping centre. On top of that, the basement houses a metro station as well as the Helsinki central bus station for easier travel.
The Tennispalatsi Leisure Centre is right next to the mall as well, allowing visitors to enjoy the arts at the Finnkino Cinema and the Helsinki Art Museum (HAM).
Address: Urho Kekkosen katu 1, 000100 Helsinki Finland
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6. Denmark
VAT Tax: 25% | VAT Reduced Rates: –
VAT Refund Rate: 12.5%-13.7% | Minimum Spend: 300 DKK (~S$58.87)
Located in northern Europe, Denmark is a haven for architecture and design buffs. With the country charging the usual VAT rate of 25%, Denmark offers surprisingly good savings of up to 14.65%. From boutiques to Danish stores to big designer labels, you will find everything in the capital Copenhagen.
👉 Top Shopping Spot in Denmark: Strøget, Kongens Nytorv & Torvehallerne
Running from the heart of the city to City Hall Square, Strøget is one of Europe’s longest pedestrian shopping streets which houses young and budding fashion labels. For exclusive designer brands, head towards the Kongens Nytorv and if you walk even further, you will find Torvehallerne, a new indoor market segment.
Address: Strøget, København, Denmark
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7. Republic of Ireland
VAT Rate: 23% | VAT Reduced Rates: 13.5% and 9%
VAT Refund Rate: 13.75%-15.5% | Minimum Spend: 75 EUR (~S$109.81)
It won’t be a trip to Europe without visiting Ireland, especially Dublin! With a relatively low VAT rate of 23%, the country offers tourists savings of up to 14.22% on luxury purchases. Excellent news for those who can’t seem to stop splashing cash in the Irish capital.
The reduced VAT rate of 13.5% applies to certain fuels, building services, the importation of art and antiques, etc. The second reduced VAT rate of 9% applies to admissions, certain musical performances, museums, art galleries or exhibitions, etc.
👉 Top Shopping Spot in Ireland: Dundrum Town Centre
Dundrum Town Centre is a dream shopping spot. Known as the mall with everything, Dundrum houses many elegant small boutiques, trendy large chains, a cinema, as well as indoor and outdoor restaurants. It also holds many retail brands such as Harvey Nichols, House of Fraser, H&M, and Massimo Dutti, so don’t miss out on the goods!
Address: Sandyford Rd, Dundrum, Dublin 16, Ireland
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8. Poland
VAT Rate: 23% | VAT Reduced Rates: 8% and 5%
VAT Refund Rate: 13.63%-14.3% | | Minimum Spend: 200 PLN (~S$68.88)
Last but not least, we have Poland — a flourishing and high-powered country situated in central Europe between Germany and the former Russian states of Belarus and Ukraine. Similar to the Republic of Ireland, Poland offers a tax rate of 23% and refunds of up to 14.05%.
Supplies covered by a VAT reduced rate of 8% include, among others, supplies of pharmaceutical products, passenger transport services, and supply of goods for the Social Housing Programme. Supplies covered by a reduced rate of 5% include books, journals, and certain food.
👉 Top Shopping Spot in Poland: Annopol Factory
And of course, no trip to Poland is complete without visiting the Annopol Factory in Warsaw. An industrial area that has been renovated into a business area with retail parks, Annopol is a modern outlet centre favourable for bargain hunters. Featuring all kinds of products from fashion to home appliances, you can always find a good discount of up to 70% on some of Poland’s famous products!
Address: Annopol Factory Warsaw, Annopol 2
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Save More On Your Shopping Sprees In Europe!
And there you have it! With eight new spots in Europe to splurge your little heart out, you’re ready to save and make the most of those VAT refund rates! And in the event that you finally bite the bullet and book that trip out, don’t forget to use your YouTrip Card to lock in our ever-reliable wholesale exchange rates on your pre-trip purchases!
As Singapore’s favourite multi-currency wallet, we aim to get those pesky fees out of the way and help you save on your travels. Don’t have a YouTrip Card yet? Sign up for your complimentary card today with <YTBLOG5> to get FREE S$5 in your account! Then, head over to our YouTrip Perks page for exclusive offers and promotions — we promise you won’t regret. For more great tips and articles like this, join our Telegram (@YouTripSG) and subscribe to our free weekly newsletter here or down below.
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