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World Tax & VAT Refund Guide

The standard VAT or sales-tax rate for each country and whether tourists can claim a refund on departure — for smarter shopping abroad.

France

Rate

20%

Tourist refund

Yes

Détaxe refund for non-EU residents; instant or by mail.

Rates reflect standard VAT/GST/sales tax. Some countries apply reduced rates to food, books or accommodation. Always confirm current rates with the local tax authority.

What VAT and sales tax actually are

Value Added Tax is a consumption tax built into the price of goods and services, collected in stages along the supply chain but ultimately paid by the final consumer. Most of the world uses VAT (or GST, the same idea under another name): the EU, UK, Australia, India, Canada and much of Asia and Latin America. The United States is the major exception, using state-level sales tax instead of a federal VAT.

Rates vary widely — from 0% in some Gulf states (on most goods) to 27% in Hungary. The rate you see on a price tag in a VAT country almost always includes the tax, unlike the US where sales tax is added at the checkout. This surprises American travellers in Europe.

How tourist VAT refunds work

Many countries refund VAT to non-residents who buy goods and carry them home in personal luggage, on the principle that the goods were consumed outside the country and should not bear its consumption tax. The refund process usually requires a special form from the retailer at purchase, a customs stamp on departure, and submission (often through a commercial refund company) for payment.

Not every country offers a refund, and those that do set minimum spend thresholds, eligible goods categories and time limits. Australia's Tourist Refund Scheme (TRS), the UK's Retail Export Scheme and the EU's détaxe are the best-known systems. This tool shows whether a refund is available per country.

Claiming a refund in practice

At purchase, ask the retailer for a tax-free or export form, and keep the receipt. Some retailers are enrolled with refund companies (Global Blue, Planet) whose forms are pre-printed. On departure, before checking in your bags, present the goods and forms at customs for stamping — customs may want to see the items, so do not pack them in hold luggage first.

After stamping, submit the form via the refund company's desk or by mail. Instant cash refunds at airport desks are convenient but charge a fee; mailed or card refunds take weeks but cost less. Plan 20–60 minutes extra at the airport for the customs queue.

What is and isn't refundable

Refunds generally apply to tangible goods you take home, not to services (hotels, meals, car hire) consumed in the country. Some categories — alcohol, tobacco, food consumed locally — are excluded or restricted. There is usually a minimum spend per retailer, and goods must leave the country within a time limit (often three to six months of purchase).

It is rarely worth claiming on small purchases below the threshold or when the refund fee exceeds the refund amount. The largest refunds come from big-ticket items — jewellery, electronics, fashion — where the VAT on a single purchase can be hundreds of euros.

The US sales-tax exception

The United States has no federal VAT; sales tax is set by states and localities, ranging from 0% (Oregon, Delaware, Montana, New Hampshire) to over 9% combined in some cities. Sales tax is added at checkout, not shown on the price tag. Unlike VAT, US sales tax is generally not refundable to tourists — only Louisiana offers a limited tourist rebate program.

This means American prices look lower than European ones on the shelf but rise at the till, the opposite of the European experience. Travellers from VAT countries should remember to add US sales tax mentally when budgeting, and travellers to VAT countries should remember the price they see is what they pay.

Planning shopping around refunds

If you plan a significant purchase abroad, research the refund rules before you travel. Know the minimum spend, the eligible categories and the refund company the retailer uses. Keep all receipts and forms together, and photograph them in case paper is lost. Leave enough time at the airport for customs — queues can be long, especially at major EU airports in summer.

For very large purchases, some travellers route the refund to a card to avoid cash-desk fees; for small ones, the paperwork may not be worth it. Either way, a refund turns a country's VAT from a pure cost into a partial one — a meaningful saving on the right purchases.

Frequently Asked Questions

What is VAT?

Value Added Tax is a consumption tax levied at each stage of production, built into the price consumers pay. It is the standard sales tax mechanism in most of the world (called GST in Australia, India, Canada). The US uses state sales tax instead of a federal VAT.

Can tourists get VAT refunded?

Often, yes. Many countries refund VAT to non-residents on goods exported in personal luggage, processed at the airport or border. Eligibility rules, minimum spend and procedures vary. Some countries (US, Mexico, New Zealand) do not generally refund to tourists.

How do I claim a refund?

Usually you request a tax-free form from the retailer at purchase, present it with the goods at customs on departure for stamping, then submit it (often via a refund company) for payment. Some airports offer instant cash refund desks. Plan extra airport time for the process.

Is there a minimum spend?

Yes, typically. EU refunds require a minimum per retailer (often €50–175). Australia's TRS requires AUD 300 per purchase. Check the threshold before assuming a refund is worth claiming on small purchases.

Are VAT rates the same for everything?

No. Most countries apply reduced rates to essentials like food, books and sometimes accommodation, and a standard rate to other goods. This tool shows the standard rate; specific categories may be lower.

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