News, Tips & Bargains : VAT--A Taxing Issue

VAT--Value Added Tax--is a sales tax with a difference: It’s usually refundable to foreigners. To get refunds, travelers must make a minimum purchase per merchant and must have refund forms stamped by customs officials before leaving the country. Below are minimum expenditures required to obtain a refund, and the amount of the purchase price that is VAT. Must stores include the VAT in their price tags, instead of showing the tax separately, so it’s easy to overlook how much money is going to taxes. For a free brochure, write or fax Europe Tax-free Shopping at its American headquarters, 111 W. Monroe St., Suite 2100E, Chicago, Ill. 60603; fax (312) 346-6211.

All prices in U.S. Dollars

Country Minimum VAT levels Austria $85 16.7% Belgium $200 17% Britain $75 14.9% Denmark $90 20% Finland $17 18% France $350 15.7% Germany $30 13% Greece $165 11.5-15.3% Hungary $300 20% Italy $180+VAT 11.5-16% Luxembourg $85 13% Netherlands $160 14.9% Norway $40 18% Portugal $60+VAT 13.8-23% Slovenia $65 9.1-24.2% Spain $110 13% Sweden $12 20%

Source: Europe Tax-free Shopping