VAT Refunds: Minimum purchase thresholds in the EU
Every country within the European Union has the right to specify their own regulations on Tax-Free shopping. As a result, most countries have different thresholds set for the minimum purchase price of goods in order to be eligible for a VAT refunds. Why is there a threshold? What are the different thresholds? To help you navigate, this article will answer these questions and provide you with a reference guide when traveling the EU.
Qualifications
As explained in some of our other blogs, there are essentially three main criteria that must be met in order to qualify for VAT refunds and Tax Free shopping: having permanent residence outside of the EU, leaving the EU within three months of purchase date, and the purchase must meet the minimum purchase threshold.
VAT refund minimum purchases by country:
🇭🇺 Hungry: €175.00
🇮🇹 Italy: €154.94
🇧🇪 Belgium: €125.01
🇫🇷 France: €100.01
🇭🇷 Croatia: €100.00
🇨🇿 Czech Republic: €75.91
🇦🇹 Austria: €75.01
🇵🇹 Portugal: €61.50
🇬🇷 Greece: €50.00
🇳🇱Netherlands: €50.00
🇵🇱 Poland: €47.00
🇩🇰 Denmark: €40.00
🇳🇴 Norway: €29.50
🇩🇪 Germany: €25.00
🇺🇸 Spain: €0.00
How can I receive VAT refunds in these countries?
You can go through the long process of the traditional method, or use an innovative system such as Woonivers.
- The traditional method is when you work directly with the store or merchant to fill out Tax Free forms to get them stamped and validated at customs upon departure. To get refunded you need to either work with a third party operator to manage the reimbursement before leaving or contact the store/merchant yourself to arrange the refund. Both of these methods can take 3+ months to receive your refund.
- Woonivers is the first 100% digital operator of Tax Free Shopping. Simply upload your invoice(s) of purchases and we handle the rest! Then simply provide customs agents with our unique QR code of your VAT refund claim upon departure and receive your money immediately! Woonivers makes Tax Free Shopping easier, faster, and secure.
For more information on how to shop Tax Free and Woonivers, click here.
Why do countries have a minimum purchase threshold?
This is because the outdated Tax Free process can be relatively complex and time consuming, allowing Tax Free for small purchases would add lots of stress to the system. However, this could be starting to change! Spain for example (as seen in the list above) has eliminated the minimum purchase threshold as a result of technological advances such as Woonivers! It can also be seen as an incentive to spend more money within stores since you are forced to reach the minimum threshold in order to obtain refunds. This too, can result in more revenues generated overall. Here is a link with more information on VAT rates and thresholds.
If you are interested in finding out more about Tax-Free, you can check out our blog . For more information on Woonivers and how we can help you save money and travel smarter, click here!