Travel Flashcards
VAT
Value-added tax. A product is partially taxed at every point of production instead of being taxed only once, like with a national sales tax or state sales tax (which is how the US does it)
What is the end result of the VAT for foreigners?
A higher tax on stuff
What do you do to get a refund for VAT items?
When you’re shopping, show the merchant your passport and have them fill out a refund document, usually called a “tax-free form”. Then bring all of this to customs at the airport you’re leaving from. The customs officer may ask you to show them your goods then. So make sure to do this before you check your bag. Then take the certified document to a specific office in the airport or station that processes the paperwork. It can take months to get a refund.
It’s a lot of steps so its worth it if you made large purchases.
