Tax-free Shopping in EU: a money-saving secret!

grassmarket

Why is there no Moneysaving Guide about how to shop tax-free in EU? 

Since Jan 2021, UK citizens can claim back the EU VAT paid on most purchases while in EU. Each EU country sets its own rules (of course!) but essentially we can claim back VAT on most goods purchased for personal use. With EU tax typically 20% on most goods - that’s a hefty saving! The usual exceptions apply: firearms, drugs, tobacco etc. 

See section ‘VAT Refunds to non-EU travellers’ in this official EU directive: 
https://taxation-customs.ec.europa.eu/taxation/vat/vat-directive/vat-refunds_en

Despite the EU supposedly being a ‘common market’ - each country can invent its own rules & various other hoops to jump through. In France, for example, the total value of purchases from an individual retailer must be over €100 to qualify; in Belgium it’s €125, Germany & Netherlands €50 - in Spain it’s zero! Each retailer must fill in a customs form & you then claim it all back before return to UK - usually at a Customs PABLO terminal at the airport/ferry terminal. Refund received a few days later via your nominated method (refund will be in Euros, so fee-free credit card is best). 

Tax-refund apps exist which make the whole palaver a bit easier (eg GlobalBlue, SkipTax).

Good money-saving tip for a pre-Christmas designer shopping trip to Paris or - more likely - a booze cruise to Calais!

Further, more readable & practical info here:
https://wise.com/gb/blog/vat-refund-france
https://www.france.fr/en/article/tax-free-shopping-france-uk-residents/

woolly_wombat

Very useful, thanks.
I agree that a MSE guide on claiming back EU VAT in the run up to Christmas would be a very good idea.
At last a Brexit benefit!!!

JGB1955

That may work for bringing home goods under your personal allowance (£390) but aiui, exceed that, and VAT and customs duty may become payable.

grassmarket

No idea what aiui is but yes - it does work. I’d rather have up to £80 tax back than none at all - wouldn’t you?

carly

grassmarket said:

No idea what aiui is but yes - it does work. I’d rather have up to £80 tax back than none at all - wouldn’t you?

AIUI  =   As I understand it.   At least it used to.

cantbelieveit23

Yes, we have used the PABLO kiosks with Skiptax at Eurotunnel for purchases we made at Pidou wine and Auchan (on our annual booze cruise) and all has worked perfectly.  Pidou are well set up for that, but the Auchan staff initially needed a conference and to rummage through drawers for the form.   We have now realised that we can claim back on purchases we make in Spain at Eurotunnel too.  The fact that there is no minimum spend is a great addition too, thanks Grassmarket.  Fingers crossed, as I imagine many Spanish retailers will be totally ignorant of this!

grassmarket

Glad to hear it worked for you. As you say - Spain has zero min spend, whereas in most EU countries it’s €25-100. However there does seem to be a technical problem with Spanish Customs at the moment, so getting the right paperwork from retailers may be more difficult. Explained here: 
https://help.zapptax.com/en/articles/11951381-spanish-tax-refund-currently-unavailable

Grumpy_chap

We found the tax free shopping simple enough on departing Spain (Malaga) late last year.  All the shops we used were helpful in providing the receipts.  We only had a small value in total to consider.  If the value of our spend was larger, while we could claim back VAT on departing EU we would, AIUI, have to declare the value for UK duties on arrival.  The potential to make a big gain is limited and probably never going to reach the point of the "booze cruise" shopping day trips we remember from our youth.

Maegi

https://forums.moneysavingexpert.com/discussion/6565094/tax-free-shopping-in-eu-a-money-saving-secret

The EU has never been a common market, that was the EEC/EC.

I know it's odd but in the olden days, when UK was in the EU, even cantankerous Little Britain set it's own VAT rates etc.

highlander58

Amazed to find someone still reading this post - 17 months later! However the comment is neither relevant or correct.

This post is about how to save money when buying stuff in EU - by claiming back the VAT.

And the EU IS a common market - just look it up.
The point is: it’s a common market among member states, not outsiders. So for outsiders each state can set its (not it’s!) own tax rules & thresholds.