Aussies love going to Europe, that’s a matter of fact (and, if you want to know the 5 cheapest cities to stay in, we’ve got you covered). However, it’s never cheap trekking halfway around the world, especially to one of its prime shopping destinations. That dear friends, is where tax-free shopping comes into play.
With the help of Global Blue, we’ve rounded up the ten best locations in Europe for tax-free shopping, so that you can score some of your favourite luxuries with a tidily reduced price tag…
1. Austria
Save up to 20% on purchases of EUR 75.01 ($121 AUD) or more.
Austria’s VAT refund program offers significant savings for non-EU residents over 18 who spend at least EUR 75.01. The standard VAT rate of 20% applies to most items, but there’s also a 10% rate on food and books and 13% on art and antiques.
Tourists can enjoy juicy refunds on private goods intended for export, excluding ‘spare parts’ and services. All in all, it’s the streamlined process that makes tax-free shopping so convenient and lucrative in Austria.
2. Croatia
Save up to 20% on purchases of EUR 98.21 ($158 AUD) or more.
Croatia offers substantial VAT refunds for non-EU residents who spend at least EUR 100.00. The standard VAT rate is 25% for most items, including fashion, textiles, alcohol, optics, and jewellery. Lower rates of 13% apply to periodicals, car seats, baby food, and edible oils, while medicines are taxed at 5%.
Refunds are granted on items exported in personal luggage, but only if you ensure they remain unused. It’s the high VAT rate that really makes Crotatia a shopping hotspot for anyone looking to save significantly on diverse purchases.
3. Denmark
Save up to 20% on purchases of DKK 300.01 ($64 AUD) or more.
Denmark provides a generous VAT refund of 25% on a wide range of goods for non-EU residents, including those from Greenland, with a minimum spend of DKK 300.01. Refunds apply to items exported in personal luggage that remain unused.
However, alcohol and services are excluded from refunds, which will be a frustration for many who see this as the main tax-free trunk filler. Denmark’s high VAT rate and straightforward refund process make it an attractive shopping destination for tourists, as does the so-low minimum spend.
4. France
Save up to 20% on purchases of EUR 100.01 ($160 AUD) or more.
France offers an enticing VAT refund for non-EU residents over the age of 16, with a minimum spend of EUR 100.01. The standard VAT rate is 20%, but there are reduced rates of 10% for pharmaceuticals, 5.5% for food and books, and 2.1% for certain products and services.
Refundable items must be unused and transported in personal luggage, excluding — this first one won’t come as much of a surprise, but the last one might — weapons, pharmaceuticals, tobacco, postal stamps, vehicles, services, and cultural relics over 50 years old.
5. Germany
Save up to 19% on purchases of EUR 50.01 ($80 AUD) or more.
Germany’s VAT refund system offers a standard rate of 19%, with a reduced rate of 7% for food, books, maps, antiquities, and pharmaceuticals. Non-EU residents and those with valid long-term visas for non-EU countries are eligible, provided they are over 18 years old.
The minimum spend to qualify for a refund is a very welcome and very low EUR 50.01. Refunds are available for unused items exported in personal luggage, excluding prepaid mobile services, spare parts, oil products, vehicles, and services. Germany’s typically efficient VAT refund process and reasonable minimum spend make it a favoured destination for tourists looking to save.
6. Portugal
Save up to 20% on purchases of EUR 61.50 ($100 AUD) or more.
Portugal’s VAT refund policy is very advantageous for non-EU residents, offering a standard VAT rate of 23%, with reduced rates of 13% for optics and 6% for books and medicines. The minimum spend required to qualify for a refund is a measly EUR 61.50. Refunds are available for unused items exported in personal luggage, but spare parts, vehicles, and services are excluded.
Portugal’s intuitively varied VAT rates and low minimum spend requirement make it a top destination for tourists seeking to maximize savings — and here’s an added bonus — including those found on Madeira and the Azores Islands with their unique VAT rates of 22% and 16%, respectively.
7. Russia
Save up to 20% on purchases of RUB 10,000 ($170 AUD) or more.
Now, we know that Russia might not be the trendiest holiday spot right now but… hear us out. Russia provides a standard VAT refund rate of 20%, with a reduced rate of 10% for food, books, children’s supplies, and medicines. The minimum spend to qualify is RUB 10,000, and refunds apply to unused goods exported in personal luggage, excluding tobacco, alcohol, oil products, vehicles, and services.
The high VAT rate and substantial refund potential make Russia s surprisingly appealing destination or, at the very least, will provide a silver lining to any ambivalent visit.
8. Serbia
Save up to 20% on purchases of RSD 6,000 ($82 AUD) or more.
Serbia offers a VAT refund of 20% for non-residents, with a reduced rate of 10% on food, textbooks, teaching aids, and — here’s a new one — farming supplies. To qualify, shoppers must spend a minimum of RSD 6,000 on unused items that are exported in personal luggage. However, the list of non-refundable goods is pretty long, including fuel, tobacco, private transport, alcohol, coffee, oil products, and services.
Nevertheless, Serbia’s high VAT rate and low minimum spend requirement make it an attractive destination for tourists looking to save on a wide range of goods.
9. Netherlands
Save up to 20% on purchases of EUR 50.00 ($81 AUD) or more.
The Netherlands provides a standard VAT refund rate of 21%, with a reduced rate of 9% on food. Non-EU residents can benefit from this refund with a minimum spend of EUR 50.00. Refunds are applicable to items exported in personal luggage, with the condition that food, confectionery, and medicines must be sealed and unused.
Non-refundable goods include souvenirs (created by registered companies) and services. The Netherlands’ high VAT rate and low minimum spend requirement make it an attractive shopping destination, especially when the country is renowned for its high accommodation and living costs — every little helps, as they say.
10. Slovenia
Save up to 20% on purchases of EUR 50.01 ($81 AUD) or more.
Finally, we turn to Slovenia, which offers a standard VAT refund rate of 22%, with a reduced rate of 9.5% on food, books, medicines, and art. Non-EU residents qualify for this refund with a minimum spend of EUR 50.01. Refunds are applicable to unused items exported in personal luggage, but non-refundable goods include a swathe of popular choices like fuel, tobacco, mineral oils, alcohol, and services.
Slovenia’s high VAT rate and relatively low minimum spend requirement make it an appealing shopping destination, especially for those with fine arts on the brain…
A Final Note On Forms
The most important thing to remember when visiting any of these countries is that filling out the correct customs forms in the correct way is crucial to getting your refund. These often vary country by country and can be many shades of complex. Head to Global Blue for more details, but remember to read the fine print and go slowly with them — don’t risk leaving free money on the table. Happy travels!
Note: All currency conversations were correct at time of writing.