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Have you ever gone shopping overseas and noticed a “VAT” charge on your receipt? VAT (value-added tax) is applied to most goods worldwide. But what’s interesting is that tourists can claim a portion of it back when they leave the country.
Tax Free shopping through VAT refunds can result in significant savings, especially for large purchases. So whether you’re hunting for designer bags in Paris, the latest electronics in Tokyo, or chic homewares in Copenhagen, the best countries for VAT refunds will ensure you get some of that money back in your pocket.
Keep reading to discover where to shop, how the refund process works, and tips for maximising your reimbursement.
What is VAT and who can claim?
VAT stands for Value-Added Tax, a consumption tax applied to goods, typically ranging from 7% to 25% depending on the country. Non-residents can generally claim a portion of this tax back upon departure.
What purchases usually qualify
Purchases that qualify for a VAT refund must be for personal use and cover a wide range of products, including clothing, luxury items, jewellery, electronics, household goods, skincare, and more.
Services, dining, transportation, and accommodation do not qualify for a VAT refund, even though the tax will likely appear on your bill.
Basic eligibility
The basic eligibility for a tourist tax refund is generally:
- Non-resident status
- Meeting a minimum spend threshold, which varies by country. This can range from €25 to over €250
- Proper receipts and tax forms validated by customs
- Minimum age (often 16 or 18)
How VAT Refunds Work (Step-by-Step)
Securing a VAT refund is relatively straightforward, provided you understand the basic information about the process. Here’s a step-by-step breakdown of how Tax Free shopping works from the time of purchase to securing your final refund.
1. At the store
If you hit the minimum spend, ask for a Tax Free form at checkout and present your passport. Your goods will usually be sealed on the spot (don’t open them until you leave the country!), and you’ll need to keep both the form and receipt for customs validation to claim your refund.
2. At the airport/exit point
When leaving the country, you’ll need to validate your Tax Free purchases with customs at the airport or other exit point.
Without customs validation, it’s impossible to claim a VAT refund.
Present your unopened items in their original packaging, along with your completed forms, receipts, and passport. Customs officials will inspect your goods and confirm that you’re taking them out of the country. If everything is in order, they’ll validate your purchases with a stamp on your Tax Free form. This stamped tax form serves as proof of your export, enabling you to claim your tourist tax refund.
3. Getting your refund
With tax forms validated by customs, visit the Planet desk or self-service kiosk after security, where we’ll process your refund..
You can find us at most major airports with our full list of refund locations here.
Cash refunds are immediate but come with higher fees and limits on the amount you can claim on site. For larger refunds and lower fees, we can issue it to your credit card or bank account within a few days of processing.
When your refund is on the way, track your cash on Planet’s Shopper Portal, where we streamline all things Tax Free.
If you miss the Planet refund desk at the airport, you can mail your validated tax forms to us in a prepaid envelope. Once we receive and process your paperwork, we’ll be able to issue a refund to your credit card or bank account.
The 10 best destinations for Tax Free shopping
Spending in Tax Free shopping destinations comes with savings, too. These are the top ten countries for VAT refunds, along with what to expect when shopping, completing paperwork, and claiming your tax back.
1. France
France is the crème de la crème of Tax Free shopping. With a standard VAT rate of around 20% and refunds typically between 12 and 15%, you can score some serious savings on luxury goods. Additionally, shopping directly from French brands like Hermès, Louis Vuitton, and Cartier means you avoid the import markups typically charged at home.
The tourist VAT refund process in France is straightforward, thanks to the country's solid infrastructure, which is available in-store, digitally, or at the airport. Most shops are well versed on Tax Free forms, and many department stores even have desks where you can claim your VAT refund on the spot.
So if you want our two cents… that bag is definitely worth the splurge on your next trip to Paris.
Refund process: Many stores in France offer Planet VAT refund forms that they will complete on your behalf, provided you present your passport. When you leave the country, you need to validate the form at customs with your unused purchase(s) to claim your refund.
Alternatively, shoppers can take advantage of a digital VAT refund at Planet kiosks in major airports across France or big department stores like Le Bon Marché and Printemps. Simply present your refund form and passport, and we’ll take care of the rest.
Minimum spend: €100 including VAT at a single store
2. Hong Kong
There’s no doubt that Hong Kong is one of, if not the best, Tax Free countries for anyone with an eye for high-end goods, considering there’s no VAT or sales tax on any items. Rather than claiming a refund, shoppers can enjoy immediate cost savings during their visit to the territory.
In Hong Kong, the ticket price of an item is what you pay. No paperwork. No refunds. And no need to do mental math to figure out the actual price of an item after getting VAT back. If you want to skip the hassle, this cosmopolitan city is larger than life. It offers some of the finest luxury shopping anywhere in the world, featuring a diverse range of products, from designer goods and electronics to high-end fashion, beauty, and skincare.
Refund process: None! No VAT or sales tax on items in Hong Kong.
Minimum Spend: None
3. UAE
Countries in the UAE, such as Dubai and Abu Dhabi, are well-known for welcoming shoppers to take advantage of the region's VAT refund benefits. Goods in the UAE are taxed at a VAT rate of 5%, with refunds available for eligible purchases made through select retailers, at points of exit, or digitally via Planet’s Shopper Portal. Most shoppers are typically refunded 87% of the total VAT amount paid.
Despite its lower VAT rate compared to Europe, the UAE maintains a luxury market of similar calibre, featuring premium brands, fragrances, textiles, and gold, for which you can claim a VAT refund as a tourist.
Refund process: When leaving the UAE, visit one of Planet’s validation points before checking luggage and present your tax invoices, passport, and goods for inspection. After validation, you will be issued a cash or card refund, which will typically be processed within 9 days of departure from the country. In some cases, you may require an extra screening of your goods after immigration. Once validated, you’ll be able to proceed with the refund.
To simplify the process, shoppers can choose Planet merchants who can handle all Tax Free transactions on their behalf. These merchants can issue a digital or paper tax invoice that links up to Planet’s Shopper Portal to validate your purchases and track your refunds in one place.
Minimum spend: AED 250 (approximately $70 USD)
4. Italy
Italy is any shopper’s dream, with major destinations like Milan, Rome, and Florence overflowing with luxury retailers and designer goods. The country has a standard VAT rate of 22% (which drops to 10% for certain purchases, such as jewellery), with a refund rate generally ranging between 13% and 15%.
While you probably don’t need an excuse for a trip to Italy, the high VAT refund rate gives shoppers a compelling reason to visit the country, especially considering it’s home to some of the world’s top fashion houses like Prada, Valentino, Gucci, and Dolce & Gabbana. If you have your eye on pieces from any Italian brand, it’s worth purchasing them directly from the source for significant cost savings and a great souvenir.
Refund process: If you’re a permanent resident of a country outside of the EU, you have three months to collect a customs stamp and claim a VAT refund for qualifying purchases.
Planet has desks at most major Italian airports to process your refund with stamped customs forms. In Italy, shoppers can claim up to €1,000 per Tax Free form in cash, or €3.000 per Tax Free form refunded to a credit card.
Minimum spend: €70, among the lowest in Europe.
5. Switzerland
Because Switzerland is not a member of the EU, there are competitive Tax Free shopping advantages for non-Swiss residents, particularly European neighbours who don’t typically benefit from tourist tax refund schemes in the region.
Switzerland’s VAT rate is 8.1%, and you’ll typically receive a refund of between 4.5% and 5.4%. The numbers aren’t huge, but the savings add up fast, especially on high-end items like watches and Swiss-made knives. Just remember to stick them in a checked bag on your way home!
Refund process: Non-Swiss residents can claim a VAT refund using Tax Free forms provided by merchants for qualified purchases. You then have 90 days to have these forms validated by Swiss customs when leaving the country. Along with the forms, you’ll need to present your receipts, passport, and unopened goods. When Swiss customs have validated your forms, return them to Planet, where we’ll process your refund.
While you only have 3 months to have your forms validated, you have up to four years to claim your VAT refund.
If you receive your Tax Free refund before departing Switzerland, you’re still required to have your Tax Free forms validated by Swiss or EU customs. The stamped forms must be returned to Planet within 21 days to ensure no additional charges.
Minimum spend: 300 CHF (approximately $375 USD or €320 euros)
6. Finland
Finland probably isn’t your first thought for a European shopping trip or Tax Free countries. But the combination of a high standard VAT rate and a low minimum spend makes it an easy way to save money as a non-EU visitor (excluding people from Norway).
From Helsinki to Lapland, Finland’s standard VAT rate is a whopping 25.5%, which amounts to a general refund rate of between 13% and 17%. So if you’ve been eyeing a high-ticket item, outdoor gear, or some cosy new knitwear for winter, you might want to save the spend for your trip.
Refund process: Similar to other countries, for Tax Free purchases in Finland, request the form when shopping, save all of your receipts, and receive customs validation upon departure. When you leave the country, you have two years from the date the form was issued to claim your refund through Planet.
Minimum spend: €40
7. Denmark
Denmark is best known for its minimalist design, cosy hygge lifestyle, and buzzing fashion scene, with brands like GANNI, Norse Projects, and Rains dominating the global style landscape. But it also offers non-EU travellers strong Tax Free shopping incentives.
With a standard VAT of 25% and typical reimbursement between 12.5% and 14% of that amount, you can score serious savings on Danish design furniture and homewares, high-end fashion, and everyday luxury goods.
Refund process: Non-EU residents can claim a VAT refund in Denmark on qualifying purchases by shopping with Planet retailers or requesting a Tax Free form from participating merchants when checking out. Then, have this form validated by customs when leaving the country.
If you’re flying home, visit a Planet partner desk at Copenhagen or Billund Airports before checking your bag to process your refund on the spot. Or you can send it to us within one year to receive a refund to your card.
Minimum spend: DKK 300.01 (about €40 or $47 USD)
8. Singapore
In Singapore, the city seamlessly blends with its shopping culture. Futuristic megamalls sit next to vibrant local markets, with hotspots like Orchard Road packed with luxury flagship stores, making it one of Asia’s premier shopping destinations. Expect everything from international designer labels to endless electronic and jewellery options.
Singapore imposes a standard Goods and Services Tax (GST) of 9%, which non-residents can claim back when leaving the country. You’ll likely be refunded between 7 and 8% of the total GST amount, which is Singapore’s version of VAT.
Refund process: Singapore tends to process refunds digitally, so shoppers can request an electronic refund ticket when they check out at a store and have it validated at the airport before departure.
It’s important to note that not all retailers in Singapore are a part of the Tourist Refund Scheme (TRS). To make the most of your Tax Free shopping, be sure to inquire about the store’s GST refund policy before spending a fortune.
Minimum spend: SGD 100 per store per day (about €68 or $74 USD)
9. Japan
Japan is a dream destination for shoppers, with shopping malls the size of small cities offering sleek electronics, world-class watches, and luxury fashion, as well as traditional Japanese crafts, homewares, and kitchen goods that are not available anywhere else.
There’s a standard 10% consumption tax (Japan’s VAT), and non-Japanese residents can enjoy Tax Free shopping on a wide variety of goods, making it an ideal place for some retail therapy… and sightseeing, of course. You’ll likely receive a refund of between 7% and 9% to account for handling fees.
Refund process: Unlike most Tax Free shopping destinations, which require customs validation, Japanese retailers often remove the consumption tax at the point of purchase, and most department stores have refund counters on-site. However, you must present your passport and ensure your goods remain sealed until you leave the country.
Minimum spend: ¥5,000 per store per day (about €28 or $33 USD)
10. Hungary
Hungary might not be at the top of your bucket list, but considering it has the highest VAT rate in the EU at an astounding 27%, you can expect some of the most generous refunds anywhere in Europe. You won’t receive the entire 27% back, but you’re likely to secure between 14% and 19%.
Look for Hungarian-produced items for the best value, like local porcelain, leather goods, and handicrafts, and enjoy shopping your way through Budapest’s expansive market scene.
Refund process: Tax Free shopping in Hungary is similar to the rest of the EU. Request a Tax Free form when shopping and present it at customs when leaving the country with your passport, receipts, and unused goods. You can then either visit a Planet desk to process your refund on the spot or send us your validated forms within six months.
Minimum spend: HUF 54,001 per store per day (about €140 or $160 USD)
Tips to maximise your refund
To make the most of your tax refund, keep these tips in mind:
- Consolidate your purchases: If you buy multiple items from the same store in a single transaction, you’ll meet the minimum spend threshold more easily.
- Know the minimum spend: Every country sets a different minimum amount per store per day. To make the most of Tax Free shopping, ensure that you’re above the threshold, or your purchase won’t qualify for a refund.
- Bring your passport to the store: You’ll need your passport when requesting a Tax Free form or electronic refund ticket at checkout while shopping.
- Validate early: Give yourself some extra time at the airport or border crossings to get a customs validation on your Tax Free forms. Without the stamp from customs, you can’t claim your refund.
- Keep packaging intact: In many countries, customs officials require that your goods be sealed and unused when you present them. While it may be tempting, keep your purchases in their original packaging until you leave the country.
Where you can shop Tax Free with Planet
Planet partners with thousands of retailers worldwide to make Tax Free shopping as frictionless as possible. Participating merchants can process Tax Free forms digitally through our system, streamlining the process from purchase to refund.
We also maintain an up-to-date list of country regulations and operate hundreds of refund desks at airports and exit points across the globe.
For the fastest, most secure refund experience, plan your Tax Free shopping with Planet from the start. Easily track your forms and refund progress through our Shoppers Portal to ensure that nothing slips through the cracks and you claim maximum reimbursement.
For retailers
Already a Planet partner? Simply activate Tax Free in your setup to connect to the merchant portal.
If you’re not with Planet, get in touch to offer Tax Free shopping to your customers, boost average order value, and better serve high-end international shoppers.
The difference is in the infrastructure. That’s where we come in.
Attract more customers with Tax Free shopping
FAQs
Do I get 100% of VAT back?
You won’t get 100% of the standard VAT back due to handling and processing fees. Cash refunds come with higher costs, while card and bank account refunds let you keep more of your money. When determining how to claim VAT back, you’ll typically be refunded between 7 and 19% of the item’s ticket price, depending on the country.
Can I claim VAT on services or dining?
In general, VAT refunds only apply to physical goods that you export unused out of the country. Services like hotels, dining, and transportation are not typically eligible for tax free shopping or a tourist tax refund.
Do I have to show goods at the airport?
When receiving customs validation on your tax forms at the airport, you’ll likely need to present your items in their original, unopened packaging. Resist using your goods before leaving the country, and ensure they are packed in an accessible area so that you can retrieve them when needed.
How long does it take to receive funds?
The timeframe for receiving a VAT refund varies depending on the country and refund method. Cash refunds at the airport are immediate, but in addition to higher fees, there’s also a limit to the amount that can be refunded on the spot. If you’re above the threshold, you’ll need to opt for a credit card or bank refund, which typically takes several days to a few weeks to process. The upside is that they net a higher refund due to lower fees.
Legal Disclaimer
The information provided in this blog regarding tax-free shopping, VAT refunds, and related procedures is for general informational purposes only and is based on sources available at the time of publication. Tax laws, refund thresholds, eligibility criteria, and administrative processes are subject to frequent change without notice.
We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, or suitability of the information contained herein. Any reliance you place on such information is strictly at your own risk.
For the most current and authoritative VAT refund rules, rates, and application procedures, please consult the official website of the tax authority or customs service of the country in which you made your purchase. Neither the author nor the publisher shall be liable for any loss or damage arising from the use of or inability to use the information presented in this blog.
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