Summary
VAT (Value Added Tax) is a consumption tax applied to most goods and services across Europe — it is already included in the price you see on the tag — unlike Australia’s GST (10%) or New Zealand’s GST (15%), European VAT rates vary significantly by country; the EU minimum standard rate is 15%, with actual standard rates ranging from 17% in Luxembourg to 27% in Hungary; France charges 20%, Germany 19%, Italy 22% and the UK 20%
Australians and New Zealanders visiting Europe can claim a refund of the VAT paid on eligible purchases — typically merchandise bought in a single transaction above a country-specific minimum spend — the refund is processed at the airport when leaving the EU; meals, hotel stays and services are not eligible; only goods taken home qualify; a VAT refund operator (such as Global Blue or Planet) typically processes the paperwork and charges an administration fee, so the net refund is usually 60-85% of the VAT amount rather than the full amount
The United Kingdom abolished VAT refunds for international tourists on 1 January 2021 following Brexit — if you are shopping in London, Edinburgh or anywhere in the UK specifically for the tax saving, that benefit no longer exists; the exception is airside duty-free at UK airports, which operates under a separate scheme; EU countries including France, Germany, Italy and Spain still offer VAT refunds to non-EU visitors
What is VAT? Understanding what is VAT Europe
Value Added Tax (VAT) is a consumption tax applied to most goods and services at each stage of the production and supply chain — with the final consumer bearing the full cost. It is the most common form of consumption tax in the world, used by more than 170 countries.
In Europe, VAT is already included in the price displayed on price tags, menus and receipts — unlike in the United States, where sales tax is added at the point of sale. When you see a €50 jacket in a Paris boutique, the €50 already includes the French VAT of 20%.
VAT is not the same as income tax or corporate tax — it is a tax on consumption, paid by the final buyer of goods and services.
VAT rates across Europe (2026)
VAT rates vary significantly between countries and between product categories within the same country. Most countries apply a standard rate to most goods, with reduced rates for food, books, medicines and other essentials.
Standard VAT rates — selected countries
| Country | Standard VAT rate |
|---|---|
| Hungary | 27% |
| Denmark | 25% |
| Sweden | 25% |
| Norway (non-EU) | 25% |
| Iceland (non-EU) | 24% |
| Finland | 24% |
| Greece | 24% |
| Ireland | 23% |
| Poland | 23% |
| Portugal | 23% |
| Italy | 22% |
| Belgium | 21% |
| Spain | 21% |
| Netherlands | 21% |
| France | 20% |
| United Kingdom | 20% |
| Austria | 20% |
| Germany | 19% |
| Cyprus | 19% |
| Malta | 18% |
| Luxembourg | 17% |
| Switzerland (non-EU) | 8.1% |
Reduced rates: Most countries apply lower VAT rates to certain categories — food, books, newspapers, medicines and children’s clothing commonly attract rates of 5-12%. Some basic goods and social services are exempt from VAT entirely.
The EU minimum: All EU member states must apply a standard VAT rate of at least 15%. Non-EU countries (Switzerland, Norway, Iceland, UK) set their own rates independently.
VAT refunds for tourists — how it works
As a visitor from Australia or New Zealand, you can claim a refund of the VAT paid on eligible purchases when you leave the EU — because VAT is a tax on domestic consumption, and you are taking the goods out of Europe.
What qualifies for a VAT refund
Eligible:
- Merchandise — clothing, electronics, jewellery, luxury goods, homeware, gifts
- Items you are taking home to Australia or New Zealand
Not eligible:
- Meals and food and drink consumed in Europe
- Hotel and accommodation costs
- Services (haircuts, tours, transport, entertainment)
- Anything you use or consume in Europe before leaving
Minimum spend requirements
Most countries require a minimum purchase amount at a single retailer — you cannot combine purchases from different shops to reach the minimum.
| Country | Minimum spend (single retailer) |
|---|---|
| France | €100.01 |
| Belgium | €125 |
| Italy | €70.01 |
| Germany | €50.01 |
| Netherlands | €50 |
| Greece | €50 |
| Portugal | €50 |
| Spain | No national minimum (varies by retailer) |
The VAT refund process — step by step
Step 1 — Shop at participating retailers Look for “Tax Free Shopping” or “Global Blue” / “Planet” stickers in the shop window. Not all retailers participate in VAT refund schemes — ask at the counter before purchasing.
Step 2 — Request a tax-free form At the point of purchase, tell the retailer you want a VAT refund (tax-free shopping). They will issue a tax-free form — either paper or digital — with your details, the purchase amount and the VAT amount. Keep your receipt.
Step 3 — Get the form validated by customs Before you check your bags at the airport, find the customs desk and have your tax-free form stamped. You may need to show the goods — keep them accessible, not buried in checked luggage. Digital forms are validated by scanning a QR code at an automated kiosk at some airports.
Step 4 — Claim your refund After customs validation, take the stamped form to the refund desk (Global Blue, Planet or similar) in the departure hall. Refunds can be paid in cash (euros or sometimes your local currency) or back to your card. Card refunds avoid currency conversion fees.
Step 5 — Allow enough time The customs validation and refund desk queue takes time. Allow at least 45-60 minutes before your flight.
How much do you actually get back?
VAT refund operators charge an administration fee — the net refund is typically 60-85% of the VAT amount, not the full amount.
Example — France:
- You spend €500 on a jacket at a Paris boutique
- French VAT at 20% = €83.33 embedded in the price
- Net refund after operator fee (approximately 30-40% cut): approximately €50-€67
The higher the purchase amount, the more worthwhile the refund process. For small purchases just above the minimum threshold, the effort may not justify the return.
The UK — no tourist VAT refunds since Brexit
Britain abolished tax-free shopping for international visitors on 1 January 2021, when the “VAT Retail Export Scheme” was scrapped. There is now no tourist VAT refund on goods bought in shops anywhere in the United Kingdom — not in London, Edinburgh, Cardiff or Belfast, regardless of how much you spend or where you live.
The one exception is airside duty-free at the airport, which is a separate scheme and still operates.
If you are planning a European shopping trip specifically for the VAT saving, the UK is the one major market where that benefit does not apply.
Practical tips for VAT refunds
Buy big at one retailer: 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.
Keep goods accessible: Customs officers may ask to see the goods you are claiming a refund on. Keep them in carry-on luggage or accessible in your checked bag before you go through customs validation.
Digital vs paper: Some retailers and airports now use fully digital tax-free systems (no paper form, QR code stamped digitally). Ask the retailer which system they use.
Card refunds: Refunds to your Australian or New Zealand debit or credit card avoid the currency conversion loss that cash refunds in euros can incur. Allow 5-10 business days for the refund to appear.
VAT refund operators: Global Blue and Planet are the two largest VAT refund operators in Europe. Their fees and processing times differ. Some high-end retailers process refunds directly.
VAT and OrbitRemit — what it means for your transfers
If you are living or working in Europe and sending money home to Australia or New Zealand, the price of goods and services you pay in Europe includes VAT — making the cost of living in Europe significantly higher than the headline salary might suggest. AUD to EUR and NZD to EUR transfers with OrbitRemit — check current fees and rates at orbitremit.com.
FAQs (frequently asked questions)
What is VAT in Europe?
Value Added Tax — a consumption tax included in the price of most goods and services across Europe. Rates range from 17% in Luxembourg to 27% in Hungary. Australia’s equivalent is GST (10%); New Zealand’s is GST (15%).
Can Australians and New Zealanders get a VAT refund in Europe?
Yes — on eligible merchandise purchased above a country-specific minimum spend at participating retailers, taken out of the EU when you leave. Claim at the airport customs desk before departure.
What is the VAT rate in France?
20% standard rate. Minimum purchase for a VAT refund: €100.01 at a single retailer.
What is the VAT rate in Germany?
19% standard rate. Minimum purchase for a VAT refund: €50.01 at a single retailer.
Can I get a VAT refund in the UK?
No — the UK abolished tourist VAT refunds on 1 January 2021 following Brexit. The exception is airside duty-free at UK airports.
Do meals and hotels qualify for VAT refunds?
No — VAT refunds apply to merchandise only. Meals, hotel stays, transport and services do not qualify.
How much of the VAT do I actually get back?
Typically 60-85% of the VAT amount, after the VAT refund operator’s administration fee. On a €500 purchase in France (20% VAT = €83.33 VAT), the net refund is approximately €50-€67.
Related guides
- France travel guide 2026 →
- England travel guide 2026 →
- What is GST in New Zealand? →
- European currencies: a complete guide →
- Best travel money cards in Australia 2026 →
VAT rates and refund rules are subject to change — always verify with the retailer and at the customs desk before travel. Last updated September 2026.
Sources: CNBC — European VAT refunds: How travelers can get money back (May 30, 2026) | withprive.com — VAT Refund Rates and Minimum Spend by Country 2026 (July 9, 2026) | wise.com — VAT refund Europe: a complete guide | trip.com — Europe Tax Refund Guide (3 weeks ago) | travelandtime.com — VAT Refund Calculator (May 1, 2026) | thepointsguy.com — How to get your maximum VAT refund
