Who can get a VAT refund and what they need to prove
VAT refunds go to non-resident visitors and businesses that export goods or services. The rules differ sharply between these two groups, and which one applies to you determines what you have to show and how much you'll get back.
If you're a tourist visiting a country with VAT (most of Europe, Canada, Australia, and others), you can often recover VAT on goods you buy and take home with you — but only if you meet the country's residency rules and purchase thresholds. If you're a business, you recover VAT on purchases related to taxable supplies you make, which works differently depending on whether you're selling domestically or exporting.
The country where you made the purchase sets the rules, not your home country. A purchase that qualifies for a refund in France may not may have access to in the UK, and the minimum purchase amount varies by nation.
Key Takeaways
- Tourist refunds require proof of non-residency in the country where you shopped, a receipt showing the VAT amount, and often a minimum purchase threshold that ranges from roughly $30 to $200 depending on the country.
- Goods must usually leave the country unused and in original packaging within a set timeframe — typically 30 to 90 days — and you may need to show them to customs before departure.
- Business refunds cover VAT paid on purchases used for taxable supplies, but the rules for what counts as taxable and what counts as a business expense vary by country and industry.
- Services, food, fuel, and vehicles are often excluded from tourist refunds, though some countries make exceptions for specific items like alcohol or tobacco.
- The refund process requires keeping original receipts with VAT itemized separately, and many countries require you to claim within a set window — often 30 days to three months after purchase.
Residency and visitor status requirements
Most countries that offer VAT refunds to tourists define a non-resident as someone who does not normally live in that country. The exact definition varies. Some countries check your passport and accept any visitor on a tourist visa. Others require you to have lived outside the country for a minimum period — often 12 months — before you're may be able to access.
A few countries exclude residents of nearby nations. For example, some European countries will not refund VAT to people who live in another EU country, because those people can recover VAT through their home country's business system. If you live in the UK and shop in France, you may not may have access to; if you live in the US and shop in France, you likely do.
You'll need to prove non-residency at the point of refund. Bring your passport. Some refund processors also ask for proof of your home address — a utility bill, lease, or driver's license from your country of residence. If you're unclear whether you may have access to, ask the shop assistant or refund company before you buy.
Minimum purchase thresholds and what counts toward them
Nearly every country with a tourist VAT refund sets a minimum purchase amount before you can claim. This threshold is usually per receipt or per shop, not per item. The amount varies widely: France requires roughly €100, Australia requires AUD $300, Canada requires CAD $200, and the UK requires £30. Some countries set different thresholds for different types of goods.
The threshold is typically the pre-VAT price, not the total including tax. If a shirt costs $100 before VAT and VAT is 20%, the total is $120, but only the $100 counts toward your threshold. Check the receipt to confirm which figure the shop used.
Purchases from the same shop on the same day usually combine toward the threshold. Purchases from different shops on different days typically do not, though some countries allow you to combine receipts from the same chain or shopping mall if you claim on the same day. Ask the shop or refund company what their rule is.
What goods and services may have access to for refunds
Physical goods you take out of the country usually may have access to — clothing, electronics, souvenirs, cosmetics, and luggage are common examples. The goods must be unused and in original packaging when you leave. You may need to show them to customs officials before departure, so pack them where you can access them easily.
Services almost never may have access to for tourist refunds, even if you paid VAT on them. Hotel stays, restaurant meals, tours, and transportation within the country are typically excluded. Some countries make narrow exceptions — a few allow refunds on certain activities or entertainment if you buy a ticket and take it home — but assume services are out unless the refund company tells you otherwise.
Food, alcohol, and tobacco are excluded in most countries, though some make exceptions. The UK refunds VAT on alcohol and tobacco if you take them out of the country; most other European countries do not. Fuel is almost universally excluded because it's consumed in the country. Vehicles and vehicle parts are usually excluded or subject to special rules.
Goods you consume or use in the country before leaving do not may have access to, even if you bought them with the intention to take them home. A meal you eat at a restaurant, a tank of gas you use to drive around, or a souvenir you carry in your bag and lose before departure will not be refunded.
Timeframes for claiming and leaving the country
You must usually claim your refund before you leave the country, or within a short window after departure — typically 30 days to three months. Some countries require you to claim at the airport or border; others allow you to mail in your paperwork later. The exact process depends on which country you're in and which refund company processes the claim.
The goods themselves must leave the country within a set timeframe, usually 30 to 90 days from purchase. If you buy something and don't leave for six months, you won't be able to claim. Some countries require you to show the goods to customs before departure to prove they're leaving; others trust the paperwork.
Keep your receipts. The refund company will need the original receipt showing the VAT amount itemized separately. A credit card statement or email receipt usually isn't enough. If the shop doesn't print VAT on the receipt, ask them to write it on or provide a separate VAT invoice.
Business VAT refunds on purchases and imports
If you run a business, VAT refunds work differently. You recover VAT paid on purchases used for taxable supplies — goods or services you sell that are subject to VAT. The rules vary by country, but the general principle is the same: if you paid VAT on something you use to make a taxable sale, you can recover that VAT from the tax authority.
Not all business purchases may have access to. VAT on meals, entertainment, and vehicle fuel is often non-recoverable, even if you use them for business. VAT on vehicles themselves may be non-recoverable or subject to special rules. VAT on goods you import for resale is usually recoverable, but the process and documentation required depend on the country and the type of good.
If you export goods or services, you may be able to zero-rate your sales — meaning you charge no VAT to the customer — and still recover VAT on your purchases. This is common for goods exported outside the EU or services provided to non-residents. The rules are complex and depend on what you sell and where your customer is located. Consult a tax advisor or your country's tax authority for your specific situation.
Documentation you need to keep
For a tourist refund, keep the original receipt showing the shop name, date, items purchased, pre-VAT price, VAT amount, and total. A receipt that doesn't break out the VAT separately may not be accepted. Some refund companies also require a copy of your passport to prove non-residency.
For a business refund, keep invoices showing the VAT charged, proof that you paid (bank statement or receipt), and documentation of how the purchase relates to your taxable supplies. If you're claiming a refund on an import, you'll need the import documentation and proof of VAT payment to customs.
Store these documents for at least the time required by the country's tax authority — usually three to seven years. If you're claiming through a refund company, ask how long they keep records and whether they'll handle the storage for you.
Frequently Asked Questions
Can I get a VAT refund if I'm a resident of the country but visiting on a work trip?
No. Most countries define non-resident as someone who does not normally live there. If your home address is in that country, you're a resident, regardless of why you're there. If you live abroad and are visiting for work, you may still may have access to as a non-resident — check the country's definition.
What happens if the shop won't give me a receipt with VAT itemized separately?
Ask the shop to write the VAT amount on the receipt or provide a separate VAT invoice. If they refuse, you likely won't be able to claim the refund, because the refund company needs to see the VAT amount to process it. This is rare in tourist areas but can happen in small shops.
Do I have to claim the refund at the airport, or can I do it by mail later?
It depends on the country and the refund company. Some countries require you to claim at the airport before you leave; others allow you to mail in your receipts within 30 to 90 days. Check with the refund company or the shop where you bought the goods to find out which process applies.
If I buy something and return it, can I still get a VAT refund?
No. A refund from the shop is a return, not a VAT refund. You can't claim VAT on a purchase you didn't keep. If the shop refunds your money, the VAT goes back to the shop, not to you.
Can a business claim a VAT refund on a vehicle purchase?
It depends on the country and how you use the vehicle. In some countries, VAT on vehicles used for business is non-recoverable. In others, it's recoverable only if the vehicle is used exclusively for business and not for personal use. Consult your country's tax authority or a tax advisor for your specific situation.