EU VAT Refund: Everything You Need To Know
Loading article…
While travelling in Europe, there’s a good chance that you’ll end up buying a souvenir or two to bring home for yourself or a loved one. Maybe you’ll find a beautiful rug, some stunning glass or pottery, or a full suitcase's worth of new clothes.
What you may not know about these purchases is that nearly all of them will be subject to Europe’s value-added tax or VAT, with standard rates ranging from 8.1% (Switzerland) to 27% (Hungary) depending on the country, and lower reduced rates on some items.
However, if you’re not a resident of Europe, much of the VAT that you’re charged can be refunded when you head home. It just requires a bit of admin work and some planning.
In this article, we’ll explain Europe’s VAT system and how you, as a non-European resident, can potentially recoup some of this expense.
What is VAT?
VAT stands for value-added tax, and similarly to sales taxes and government taxes in Canada (e.g., HST, GST, PST, QST), these taxes are collected to pay for things like roadways, schools, hospitals, and much more. However, unlike Canada, where the sales tax rates range from 5% to 15%, or the US, where the average sales tax is around 7.5%, the EU countries levy an average sales tax of over 20%.
Another difference is that in Europe, these taxes are built into the posted price that you see on the tag and not added as extra at the register like they are in Canada and the US.
That said, there is an understanding that as a non-European resident, you don’t get to take full advantage of the benefits of these taxes. Because of this, and partially as an incentive to spend money while you’re in each country, European governments offer non-residents the opportunity to get some of these taxes back in the form of a refund.
Who is Eligible for a VAT Refund?
VAT refunds are available to non-EU residents and EU citizens who reside outside of the region. To be eligible for the VAT refund, you'll also need the following:
- Proof of your non-EU residency (typically via your passport or residency permit in a non-EU country).
- Your purchases in your luggage to show customs officials upon request. This is to demonstrate that you're taking your claimed purchases out of the EU region.
- Your VAT refund documents that have been stamped by customs officials at your departure point. (Don't worry – we'll clarify the refund process below.)
Also, keep in mind that your purchases generally need to leave the EU by the end of the third month after the month you bought them. Since nearly all tourist visas limit visitors to 90 days or less, this shouldn't be a concern, but it's worth knowing about nonetheless.
Participating Countries and VAT Rates
| Country | Standard VAT rate | Min. purchase in local currency | Approx. minimum in CAD |
|---|---|---|---|
| Austria | 20% | €75.01 | ~$119 |
| Belgium | 21% | €125.01 | ~$199 |
| Bulgaria | 20% | About €128 (check with the store) | ~$203 |
| Croatia | 25% | €100.01 | ~$159 |
| Cyprus | 19% | €50 | ~$80 |
| Czech Republic | 21% | 2,001 CZK | ~$131 |
| Denmark | 25% | 300.01 DKK | ~$64 |
| Estonia | 24% | €38.01 | ~$60 |
| Finland | 25.5% | €40 | ~$64 |
| France | 20% | €100.01 | ~$159 |
| Germany | 19% | €50.01 | ~$80 |
| Greece | 24% | €50 | ~$80 |
| Hungary | 27% | 68,001 HUF | ~$298 |
| Ireland | 23% | €75 | ~$119 |
| Italy | 22% | €70.01 per receipt | ~$111 |
| Latvia | 21% | €44 | ~$70 |
| Lithuania | 21% | €40 | ~$64 |
| Luxembourg | 17% | €74 | ~$118 |
| Malta | 18% | €50 per receipt | ~$80 |
| Netherlands | 21% | €50 | ~$80 |
| Poland | 23% | 200 PLN | ~$73 |
| Portugal | 23% | €61.50 | ~$98 |
| Romania | 21% | About €175 in RON, per invoice | ~$278 |
| Slovakia | 23% | €100.01 | ~$159 |
| Slovenia | 22% | Over €50 per invoice | ~$80 |
| Spain | 21% | No minimum | No minimum |
| Sweden | 25% | 200 SEK | ~$29 |
| Iceland (non-EU) | 24% | 12,000 ISK | ~$140 |
| Norway (non-EU) | 25% | 315 NOK | ~$47 |
| Switzerland (non-EU) | 8.1% | 300 CHF | ~$514 |
| Turkey (non-EU) | 20% | 1,000 TRY | ~$29 |
| Northern Ireland (UK) | 20% | £30 | ~$56 |
| Great Britain (UK) | 20% | No tourist refund | N/A |
Note that in the table above, minimum spending amounts are typically per store rather than a cumulative total of multiple purchases within the same country.
Iceland, Norway, Switzerland, Turkey and the United Kingdom are not part of the EU. In those countries, you get your forms validated when you leave that specific country, under its own rules: Norway, for example, requires your purchases to leave the country within 30 days. Great Britain no longer offers tax-free shopping to tourists, but Northern Ireland still does.
VAT Refund – How Does It Work?
Your VAT refund is processed whenever you depart the EU – whether that's to head back home or onward to another destination. Regardless of how many countries you visit within the EU, the refund is only processed once at your point of departure from the region (and not when you leave each individual country).
In the simplest terms, the steps to process your VAT refund are as follows:
- Make an eligible purchase at a participating store, meeting the minimum spending requirement for the country you're in.
- Get your VAT refund form. Many stores will have these ready to go, but you may need to ask for this paperwork when you pay, especially at smaller shops and pharmacies. This is the step where they'll need to see your passport to confirm your eligibility.
- Fill in the VAT form and/or double-check the information filled in by the merchant. Keep these forms and the relevant receipts in a safe and accessible spot since you'll need them to process your refund.
- When you depart the EU, get your forms stamped by customs or validated at an electronic kiosk. This is necessary even if your refund was processed in-store or you purchased at a tax-free establishment. This step is used to prove that the items are leaving the EU, and without doing this, your previously processed refunds can be revoked (and your credit card re-charged accordingly).
- Once your forms and receipts have been stamped/validated, it's time to claim your refund.
- Choose how to receive your refund. You may be able to choose cash in the local currency or a refund to a credit card. The former can sometimes come with a higher commission rate to cover the convenience, whereas the latter can take a few days to process. You'll want to hang on to your related paperwork until you see the VAT refund show up on your credit card.
VAT Refund – Additional Things to Know
Depending on the mode of transportation you're using to depart from the EU (e.g., plane, train, bus, car, or boat) and where you've made your refund-eligible purchases, there are a few helpful things to know to make the last few steps of the refund easier.
Tax-free stores and in-store refunds
Some stores in the EU are advertised as tax-free, and these are places that won’t charge the VAT in the first place. Often found in touristy areas, these shops are specifically designed for the benefit of visitors.
Additionally, some stores process the VAT refunds in-house, immediately refunding the tax back to your credit card. This option is most common in larger department stores where you'll find a refund kiosk to facilitate this process.
However, in both situations, you’re typically still required to get your receipts/forms stamped by customs and then you'll have to mail them back to the shops to prove that the purchase left the region. Mail the validated documents right away, since operators like Planet can re-charge your card if they don't receive them within 21 days. Luckily, you can often deposit your documentation in a mailbox at the border, train station, or airport after it's been stamped by the customs official. Failing to do so can result in the refund being cancelled.
Airport departures
Most major airports in the EU will have customs officials and related kiosks to process your VAT refund before you board your plane. These facilities are often located before you go through security, so do some research prior to arriving at the airport to note where they're located.
You'll also want to leave a decent amount of extra time to get everything processed as the lines can sometimes be long and slow-moving. Also note that you may need to show the purchased items to customs officials, so it's best to go through this process before checking your bag.
To process your VAT refund at a major airport, first get your receipts and refund documents stamped by a customs official, and then head to the designated VAT refund kiosks.
VAT refunds are frequently processed by third-party companies like Planet or Global Blue, and these companies usually charge a commission fee to process your refund in cash or back to your credit card in the local currency. If you prefer to get your refund in a different currency, you may be able to do so, but you'll likely be charged an undesirable exchange rate for the convenience.
If you're departing from a small airport that doesn't have these refund-processing kiosks/agents, you'll need to process your refund by mailing the relevant documents to the designated organization/company. In these cases, there is typically a drop-box located near the customs agent and a pre-addressed stamped envelope is often provided.
Train station departures
If you're departing by train, your refund documents can often be processed at the last station within the EU. This sometimes requires that you get off the train to process your EU exit and your VAT refund; however, sometimes the customs agents will board the train and process departures and refunds onboard.
To find out what your options are, it's best to ask at the train station where you're purchasing your ticket as they'll have the most up-to-date information related to your particular routes.
Other departure points
If you're departing by car, bus, or boat, you'll need to get your paperwork stamped by a customs official at your point of exit.
In the case of cruise ships, there should be a customs person available at the terminal where you board. For travel by car or bus, you'll likely have to get your forms stamped by a customs person at the border when you leave the EU. These forms can then be mailed for your refund.
However, sometimes, depending on where you're departing from and how you're travelling, it just won't be feasible or reasonable to find an eligible customs official, so you unfortunately won't be able to process your refund.
Save on Foreign Currency Purchases
As you're planning your trip to Europe (or elsewhere), it's a good idea to consider which of your credit cards is best suited for foreign currency spending.
Since most Canadian credit cards charge a 2.5% foreign transaction (FX) fee on all foreign currency purchases, we recommend that travellers consider an option like the Scotiabank Passport Visa Infinite +* Card. Not only does this card not charge FX fees, immediately saving you 2.5% on all your purchases, but it also gives you an array of travel perks like free airport lounge access, travel insurance coverage, and more.
Check out our guides on cards with no FX fees and the best travel credit cards to confirm that you're not missing out on valuable rewards and savings.
- Annual fee
- $150
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$350Total$350Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $350
- Welcome offerAfter $2,000 in 3 months
- Up to 35,000 points
- Ends Nov 1, 2026
Apply Now
on Scotiabank's website
Bottom Line
Processing your EU VAT refund is a fairly simple process that can net you some significant savings across your European travels.
As you enjoy your adventures across this beautiful region and fill your suitcases with local treasures, don't forget to keep the following key considerations in mind to make sure you're able to process your refund fully, easily, and efficiently:
- Have your passport to prove non-EU residency. Some stores will accept a photo of your passport, but many require that you have the physical passport to show.
- Your purchases are supposed to be unused and are intended for use once you get home. You may need to show the departing customs officer your unused items in your luggage.
- Keep your receipts safe and in an easily accessible spot as you’ll need them to process your refund when you depart the EU.
- Your purchases must leave the EU by the end of the third month after the month you bought them.
For more information on European travel, check out our related guides below, and sign up for a free Milesopedia membership to stay informed on lots of exciting travel and rewards news and to gain access to members-only content.
How much of the VAT can you actually get back?
Standard VAT rates in the European Union run from 17% in Luxembourg to 27% in Hungary, and the tax is already built into the posted price rather than added at the register. When processing your refund, third-party companies such as Planet and Global Blue will also keep a commission, which may increase significantly if you opt to take the refund in cash or in a currency other than the local one. On a small souvenir the paperwork rarely pays for itself; however, on a rug, a watch, or a suitcase full of clothing, it usually does.
Who is eligible for a VAT refund in Europe?
You qualify if you live outside the European Union, which includes Canadians, Americans, and EU citizens whose permanent residence is in a non-EU country. You need a passport or residency permit proving that address, and the goods have to be new, unused, and leaving the EU with you. Services do not count, so restaurant meals, hotel nights, and car rentals are never refundable. Each country also sets a minimum spend, usually per store and per day rather than across your whole trip, so splitting one large purchase across two shops can push you under the threshold.
Do you need to get your VAT forms stamped before flying home?
Yes, and this is the step travellers most often miss. A customs stamp or an electronic kiosk validation at your final point of exit from the EU is what proves the goods left the region, and without it your claim fails. This applies even when the store already refunded you at the till, in which case an unstamped form can see the refund reversed and your credit card recharged. If your purchases are in checked luggage, handle the stamp before you check in. Allow at least an extra hour at the airport because the lines at customs and at the refund desks are rarely short.
How long do you have to claim a VAT refund?
Your purchases must leave the EU by the end of the third month after the month you bought them. The deadline to send your validated form to the refund operator depends on the operator and the country, so post it as soon as it is stamped: Planet, for example, can re-charge your card if it doesn't receive the form within 21 days. Airports, border crossings, and major train stations usually have a drop box right beside the customs desk, so mail the envelope before you leave rather than carrying it home in your bag.
How much can you bring back to Canada duty-free?
After at least 48 hours outside Canada, you can bring back up to $800 CAD in goods without paying duty or taxes, including limited amounts of alcohol and tobacco. Shorter trips come with stricter rules, so check them before you shop. Anything above your exemption is taxable at the border, so a large VAT refund in Europe can be partly offset by Canadian duty on arrival. The Canada Border Services Agency publishes the current limits and the list of restricted items.
Which credit card should you use for purchases in Europe?
Most Canadian credit cards add a 2.5% foreign transaction fee to every purchase made in euros, which quietly eats into whatever you recover through a VAT refund or gain via credit card rewards. A card with no foreign transaction fee removes that cost on the spot, and several of them also carry travel insurance and airport lounge access worth having on a European trip.