Travelers to Europe may be leaving money on the table. Here's why
Travelers to Europe may miss out on potential VAT refunds due to specific regulations. Refunds typically apply only to merchandise, excluding items like hotels and meals. Additionally, many countries set minimum purchase amounts that must be met at a single retailer to qualify for a refund.
- ▪Refunds are generally only applicable to merchandise, not services like hotels and meals.
- ▪Countries like Greece and the Netherlands require a minimum purchase of 50 euros to claim a refund.
- ▪Italy has a minimum of 75 euros, while France's minimum is 100 euros, and Switzerland's is 300 Swiss francs.
- ▪Spain does not impose a minimum purchase requirement for VAT refunds.
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For one, refunds are generally only meant for merchandise, and not for certain categories like hotels and meals, experts said. Many countries also impose a minimum value on purchases to be eligible."Typically, you must ring up the minimum at a single retailer — you can't add up purchases from various shops to reach the required amount — so if you're doing a lot of shopping, you'll benefit from finding one spot where you can buy big," Rick Steves, a travel expert who has authored a series of guide books, wrote in an article about VAT refunds. For example, countries like Greece and the Netherlands require that travelers spend at least 50 euros (US$58) at a retailer in order to claim a refund, according to Rick Steves' Europe, a travel and tour company.
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