How VAT Rebate Works

American Citizens may notice the letters "VAT" when making a purchase or using a service when traveling in the European Union. VAT stands for value added tax, and is a tax that is included in the cost of the good or service and not added on at the register. The monies collected by the VAT tax benefit those living in the country charging the tax, therefore many purchases Americans make on goods in the European Union are entitled to a VAT rebate.
  1. Exporting Goods

    • The VAT rebate applies to goods (not services) carried home by non-business travelers. Americans can prove exportation from the E.U. by getting their VAT rebate check stamped during customs back into the U.S.

    VAT Checks

    • Merchants supply customers with a VAT refund check at the time of payment. The check will include the necessary information for the refund, including the name of the rebate provider.

    Refund Providers

    • Merchants can decide which refund provider to use, and shoppers may end up with more than one rebate service office. Global Refund and Premier Tax Free are the two largest rebate providers, and may charge a small processing fee.

    Filing

    • Once completed and stamped by customs, VAT checks are sent back to corresponding rebate providers. It is up to consumers to do the paperwork to receive the VAT rebate, however a small percentage of shops may offer this service.

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