TAX FREE or how to get VAT refund on purchases in another country

Everyone's favorite INDOTEX group of companies publishes the prices of its products on the website in the currency of the country in which the store is located. Just compare the prices by simultaneously opening the Spanish and Ukrainian site of the same Zara in two tabs and make sure that goods in Spain are about 40-60% cheaper. Many fashionistas have long understood that the costs of “flying to Milan”, spending the weekend there and buying branded things they like will be at a price comparable to just buying the same things in Ukrainian stores.

But not everyone knows that when we buy things in the EU, we also pay VAT, which, being not EU citizens, we essentially shouldn't pay. What does it mean? This means that the real need to create a Tax Free system has ripened a long time ago, and not all compatriots use this.

What is Tax Free?

As the wiki suggests, Tax free is a value added tax (VAT) refund system. VAT is refunded on purchases made by foreign citizens when they cross the border of the country in which they were purchased. Refunds range from 7 to 20% of the purchase amount, depending on the value of VAT in a given country.

It is worth making a small remark here, since for different groups of goods and services, even within the same country, a different tax rate may be applied. But the order of the numbers is clear.

Often, passing by a shop window, you can see the following signs:

These signs indicate that in the store, buying goods for a certain amount (which I will talk about later), you can refund VAT upon your return home.

I came across only two systems through which you can make a refund. This is Global Refund (in most cases), which issues blue and white checks and Premier Tax Free with pink and green checks. Because I used only the Global Refund system, I'll tell you about it.

Briefly describe Algorithm of actions for registration of Tax Free, then it includes three steps:

1. Before buying in a store, ask the consultant if the store cooperates with Global Blue. The company's website states that over its more than thirty years of practice, it cooperates with 300,000 stores in more than 40 countries, including many of the world's largest retail stores and hotels, so the likelihood is very high. If so, ask for a completed Global Refund check at the checkout when paying for purchases.

2. Leaving the EU borders, at the airport, find the window with the inscription TaxFree. Show your purchases, receipts, your passport to an employee and get an export confirmation stamped on your Global Refund check.

3. As a rule, in the same place, near the window - there is information about the location of offices in the country you are interested in - city, address, phone number. Rewrite the address and phone number you are interested in, and upon returning home, go to a partner company that cooperates with Global Refund and collect your money in cash.

It seems that everything is not easy. But in practice, difficulties often arise. Therefore, each of the points has its own subtleties. Let's take a look at what's what.

First step:

Only a non-EU citizen can receive a refund, and only if he arrived with a short visit of no more than 3 months (without a residence permit). You also cannot be a refugee or come to work for a long time. You are not one of them - then let's move on.
When you issue a Global Refund check at the store's checkout, do not be surprised that the amount payable will be less than you expected. Global Blue is not a charitable organization, which means it also wants to get its piece of the pie as a percentage.
When buying some goods, such as books, tobacco products (although it is unlikely that someone will buy cigarettes in the EU at exorbitant prices to bring home), food (you bought Iberico jamon in Spain for € 200, and you are not enough the fact that VAT will not be refunded, so most likely there will be problems at the border) or services (did you think to ride a taxi, and then get another 10% back?) - VAT refunds in most countries do not apply.
Do not forget to take your passport with you to the store. Because it is from him that your data will be rewritten. If you still forgot - tell me what to fill in yourself. Without this data and the actual address of residence in the country, a check will not help much.
Make sure that the cashier fills in the information on the Tax Refund check correctly, even the slightest mistake (missing digit, letter …) may be the reason for refusal to affix a stamp when returning home. If, nevertheless, a mistake was made, then you still should not despair) Send the original of the bank check to the address (Global Blue Slovakia sro Centralized Services Center PO Box 363 810 00 Bratislava 1 SLOVAKIA), along with a cover letter and an indication of the method most suitable for you receipt of funds, and the company will reissue the payment.
Keep not only the Tax Refund receipt, but also the fiscal receipt from the store itself. As a rule, they are stapled at the checkout and put into an envelope. BUT there are different cases. Do not lose this envelope, without it you will not be able to return anything.
Most countries have a temporary limitation on VAT refunds. In most countries (except Switzerland and Liechtenstein with 30 days), tax-free checks are valid for three months after the month of purchase.

Second step:

Did you do everything right, didn't you make a mistake anywhere? Congratulations! But that's not all the nuances!

When you are planning to leave for the airport, add + 30-40 minutes to check your checks at the customs counter. After all, you are not the only one so smart and want to save a little on purchases. Sometimes you can even get in line. So be prepared for this.
After the purchase, ask the shop assistant about where to look for the Global Blue branch at the airport. Indeed, sometimes airports are very large, such as Charles de Gaulle airport or Frankfurt am Main airport, where you can spend more than an hour looking for something. If the consultant is not particularly competent - Google will help you!
Keep the price tags on your purchased items. And do not hide things themselves too far. They may be asked to show them or price tags for verification. This is not always the case, but you should definitely take it into account.
If there are a lot of things and you are going to check them in your luggage - first put down stamps, and then just check in your luggage. It is elementary from the point of view of logic, but I myself saw cases of the opposite.
The purchased items must be in a marketable condition - i.e. it is unlikely that you will be able to get a refund from the check, which indicates the sneakers in which you actually appeared, having overcome several mountain ranges and got into the rain a couple of times.
And the last - if you have several countries on your trip - you will be able to issue a refund only in the last host country upon presentation of air tickets or any other travel document, if you are not leaving the EU by plane.

Third step:

There are seals, they returned home. What else?

From the experience of returning in Kiev, I can say that it was more or less promptly and most importantly, it was really possible to return the money at the VTB bank branch, but unfortunately the bank stopped providing this service. Now these services are handled by PravexBank and Ukreximbank.

All information about addresses, phone numbers and branches can be found on the global-blue.com links for Russia and Ukraine and other countries.

Payments usually do not happen every day, but only a couple of times a week. At the same time, according to bank employees, it is impossible to say exactly what amount will be paid. All information appears on the day of payment. Payment is made on a first come, first served basis. What does this mean? What if there are several people in front of you who have a refund of, for example, 500-800 euros - your chances are reduced. And if you also have a similar amount, or higher, then the chances decrease exponentially. Once in front of me was a woman with whom we got into conversation and during the conversation I heard the figure of 1450 euros. I was about to leave, but the question of the bank employee “Who has the amount to be paid less than 100 euros? We will serve today, the rest will come next time …”he reassured and in 10 minutes I was already standing at the cashier and receiving my money.

Useful information

Buying a tourist should not be cheaper than a certain amount and it is different for different countries. The table shows the minimum purchase amount (in the local currency of the country of purchase), the maximum percentage of refunds on the purchase amount and the amount of VAT in that country:

For convenience, you can use the Refund calculator available on the website.

Is the VAT refund worth all these subtleties, red tape, time, etc. - you decide! For some, the amount to be paid - 40-50 euros is not worth the candle, while someone for 20 euros will come to a bank branch several times and stand in line. To each his own.