New ABTA research reveals that half (51%) of UK adults don’t know they’re eligible to claim back VAT on purchases made while holidaying in the EU – meaning many could be missing out on valuable savings when heading home. The survey found that while almost half (49%) of Britons are aware that UK passport holders can claim VAT refunds on goods bought in EU countries, only one in four (26%) know how to make a claim.
And even fewer are ‘VAT victors’, with just one in eight (13%), saying they’ve ever claimed back VAT on purchases made in Europe. Younger travellers were found to be the most informed: almost seven in ten (69%) of 18-34-year-olds are aware of the opportunity to claim, compared with just 38% of those over 65. Awareness drops further among the 55-64 year olds to just one in three (33%).
In most EU countries, travellers can claim back VAT on eligible goods bought from participating retailers when taking them home, provided the right steps are followed before leaving the EU.
The spending threshold and rate for VAT refunds varies across Europe, but the process is broadly the same — which makes it more surprising that so few travellers know how to claim. In Spain, for example, shoppers need to spend at least €90.15 in one store to be eligible for a refund, and can receive 21% back, while in Greece the minimum spend is just €50, and shoppers can receive 24% back.
Wherever you’re shopping, you’ll need to request a tax-free form to fill out and show your non-EU (British) passport at the time of purchase. Refunds are processed when you leave the EU, at an airport, port or train station, where you’ll find kiosks or stands. You simply need to present the receipt, tax-free form, passport, boarding pass and the goods themselves for inspection.
Once approved, the refund is returned either in cash or to a card of your choice.It’s important to note that some goods and services can be excluded from refunds, such as alcohol and tobacco products, food and drink consumed immediately, goods used within the country and services like hotel stays or entertainment.
Graeme Buck, Director of Communications at ABTA, said: “Nobody wants to miss out on money which they are entitled to. Be a VAT victor and know how to claim VAT refunds to make those holiday spending sprees in Europe go that little bit further. It’s always worth asking at the till to see if your purchase is eligible.”
Top tips for travellers:
Ask at the till if the shop offers VAT refunds for non-EU residents.
Keep your receipts and complete the refund form at the point of purchase.
Before leaving the EU, get your forms validated at the kiosks at your departure point.
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