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What is Tax Free Shopping? (VAT Refunds)

What is Tax Free? Who qualifies?

Tax Free shopping allows eligible international travellers to claim back some of the tax included in the price of goods they purchase while travelling.

In many countries, this tax is called VAT (Value Added Tax). You normally pay VAT as part of the purchase price and, if you meet the local Tax Free requirements, you may be able to claim a refund after taking the goods out of the country or region where you purchased them.

How does Tax Free shopping work?

The exact process depends on the country where you shop, but it generally involves:

  1. Shop at a participating Tax Free store
    Make an eligible purchase and start your Tax Free claim with the retailer.

  2. Provide your traveller information
    You may need to provide your passport, Travel ID or proof of residence to confirm that you are eligible.

  3. Take the goods with you when you leave
    Tax Free shopping generally applies to eligible goods that you personally take out of the relevant country or region.

  4. Complete any required export or Customs validation
    Depending on where you shop, you may need to show your purchases and Tax Free documentation to Customs before leaving.

  5. Receive your refund
    Once the required steps have been completed and your claim has been approved, your VAT refund can be processed.

Who can shop Tax Free?

Eligibility depends on where you shop and where you normally live.

For example, when shopping in the EU, Tax Free shopping is generally available to travellers whose permanent address or habitual residence is outside the EU. EU citizens who permanently live outside the EU may also be eligible if they can provide proof of residence.

Different rules apply in other countries, so always check the requirements for the country where you are shopping.

How much will I get back?

Your refund is not necessarily equal to the VAT percentage shown for the country.

The amount you receive depends on factors such as:

  • The VAT or tax rate that applies to your purchase

  • The value and type of goods purchased

  • The Tax Free rules in the country where you shop

  • Any applicable Tax Free service fees

With Pie VAT, you can see the refund amount for your Tax Free claim before completing the process.

💡 Good to know: Tax Free shopping is different from Duty Free shopping. With Tax Free shopping, you generally purchase goods from a regular retailer and claim back eligible tax afterwards.

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