We’re here to tell you precisely what you have to know and do to save yourself some money the next time you visit Europe.
Each year, visitors to Europe lose millions of Euros with unclaimed tax refunds since they are not aware they can claim it back or because they may find the process a bit too involved. This is rather regrettable because once you purchase something within the European Union (EU), you will pay as much as 25 percent VAT. In a lot of cases, travelers from outside Europe could claim a tax refund once returning to their home country. In what followers, we’ll tell you precisely what you have to know and do to save yourself some money the next time you visit Europe. Read on to learn more!
What Really is VAT?
The term VAT refers to value-added tax, which is a consumption tax that consumers pay once they purchase specific services or items. It isn’t the same as a revenue or income tax. Once you visit Europe and buy products and services, the price will usually include VAT. Locals, of course, pay the exact same tax; the difference is that they cannot claim any of it back.
What is the VAT Rate in Europe?
In the European Union, the value-added tax rate will vary around 5% and 25%, depending on which country you are based in. A few EU countries also apply different VAT rates to different kinds of products and services. These are usually categorized as either reduced, standard, or super-reduced.
For example, a few of you travel to France, and specific products will include VAT at 2.1%, while on other products, the VAT rate will be around 5.5%, 10%, and 20%.
What Will a VAT Refund Involve?
The word VAT refund refers to the authorities refunding the amount of VAT that a visitor from outside of Europe paid on products bought while visiting the region. If the product qualifies for a refund and the rate is 25%. For example, these travelers will be able to get the total amount of the tax refunded once they leave the EU again.
If you need more information on how tax returns work while you’re in Europe, check out the internet. If you search for tax returns in Europe you will find plenty of more tips and pointers!
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