Most people who shop in Europe do not know that they can get part of the tax they paid back. Yet the rule is simple: you are not a resident of the European Union, you are taking the goods away with you, and therefore you are not liable for the local consumption tax. The Tax Free system was built for exactly that. Below I have written the process step by step.
Who Tax Free works for
There are three conditions. First, you must not be a resident of the union, and with an Azerbaijani passport that condition is met automatically. Second, the goods must be for personal use, that is, not a trade consignment. Third, the goods must be taken out of the country unused.
This rule does not cover services. No tax is refunded for a hotel, a restaurant, a taxi or a ticket; only the purchase of goods counts. Every country has a minimum amount per receipt and that figure is not the same everywhere, so combining the shopping in one shop is often the better choice.
What to do in the shop
Before paying, ask at the till whether the shop takes part in the system. There is usually a sign in the window, but asking is more reliable. If it does, you show your passport and a special form is filled in for you; in some countries this is now entirely electronic.
The name on the form must be the same as in the passport; this is the most common mistake. Keep the receipt and the form together, do not cut the label off the goods and do not throw the packaging away. If customs want to inspect, the goods have to be shown in new condition.
Read more: Cards and cash abroad: blocks, the ATM rate and how much cash to take
The Tax Free procedure at the airport
| First step | Customs validation: a stamp or an electronic kiosk |
| Goods in the baggage | Validation must be obtained before check-in |
| Goods in hand luggage | Validation is possible after security too |
| The last country | Validation is obtained in the last country you leave the union from |
Most losses come from that last line. If you are flying from Rome via Vienna, you have to get the validation not in Rome but in Vienna, because that is where you leave the union. Time matters too: the customs queue is long, so be at the airport at least three hours before the flight. To make that time, order the transfer to the airport in advance; looking for a taxi in the morning hours takes time. If you are going to put the goods in the baggage, go to customs first and then to check-in.
How and when the money comes back
There are two options. A cash refund happens immediately at the window at the airport, but the commission is higher. A refund to a card takes a few weeks, and in return more of the amount stays in your hands.
Know one thing in advance: not all of the tax comes back, because the operator takes its own fee. The real refund is usually most of the tax you paid, but not all of it. There is also a deadline for taking the goods out of the country, usually three months after the purchase, so do not keep the form for the next trip. Official information about tax rules in Europe is set out on the European Commission’s taxation and customs portal.
In brief
Show your passport in the shop and get the form, do not cut the label, take the customs validation in the last country you leave the union from. For goods in the baggage go to customs first, arrive at the airport early, and choose the card refund to save on commission. To plan your trip, fill in the application form.
Note: the minimum amount and the procedure vary by country, so ask the shop about the current terms before buying.
