VAT refunds (2024)

If you have paid VAT for a transaction in an EU Member State where you do not reside, you may be eligible for a VAT refund in certain circ*mstances.

Note: This page deals only with refunds for cross-border transactions. For ‘standard’ VAT refunds in which both vendor and customer are in the same country, please consult that Member State’s national tax authority.

There are 3 types of VAT refunds for cross-border transactions:

Cross-border VAT refunds to EU businesses

EU businesses that incur VAT in connection with their activities in a Member State where they do not habitually supply goods or services (and are thus not required to register there for VAT) are nevertheless entitled to obtain a refund from the Member State where they incurred the VAT.

To qualify for a VAT refund, during the refund period a business must NOT have:

• been based in the refunding EU Member State, or
• supplied goods or services there, except
• exempted transport and ancillary services (Articles 144, 146, 148, 149, 151, 153, 159 or 160 of the VAT Directive), or
• supplies to customers liable for payment of the related VAT under the reverse-charge mechanism (Articles 194-197 or 199 of the VAT Directive)

The claimant's home Member State will not forward the claim to the refunding Member State if the claimant:

• is not a taxable person for VAT purposes
• only makes exempt supplies without right of deduction
• is covered by the special scheme for small businesses
• is covered by the flat-rate scheme for farmers

To request a refund, claimants must send an electronic refund claim to their own national tax authorities, who will confirm the claimant's identity, VAT identification number and the validity of the claim. The request will then be forwarded to the Member State where VAT was incurred. If tax authorities are late in making the refund, claimants are paid interest.

For more information on the refund procedure, see the Summary of VAT refund procedure.

For the full rules, see Directive 2008/9/EC and Implementing Regulation 79/2012.

Non-EU businesses that incur VAT in connection with their activities in an EU Member State where they do not habitually supply goods or services (and are thus not required to register for VAT) are nevertheless entitled to obtain a refund from the EU Member State where they incurred the VAT.

To qualify for a VAT refund, during the refund period a business must NOT have:

• been based in any Member State, or
• supplied goods or services in the EU Member State where they incurred VAT, except
• exempted transport and ancillary services (Articles 144, 146, 148, 149, 151, 153, 159 or 160 of the VAT Directive), or
• services to customers liable for payment of the related VAT under the reverse-charge mechanism (Articles 194, 196 or 199 of the VAT Directive)

In addition, any EU Member State may:

• refuse to refund VAT in this way if the claimant’s country/territory does not grant reciprocal refund rights for VAT or similar to businesses based in that Member State
• impose restrictions on the type of expenditure that qualify for refunds
• insist that the claimant appoint a tax representative

For the full rules of this refund procedure, see Directive 86/560/EEC

VAT refunds for goods sold to non-EU tourists who bring them out of the EU in their personal luggage may be requested to EU retailers or specialised intermediaries, particularly in the following cases:

• Tourists whose permanent address or habitual residence (as stated in their passport or other recognised identity document) is not in the EU
• EU nationals living outside the EU (who can prove this with a residence permit or similar)

The following conditions apply:

• The customer must provide proof of residence outside the EU (e.g. non-EU passport or residence permit).
• The goods must be taken out of the EU within 3 months of their purchase. The tourist must provide a stamped VAT refund document proving this.
• The value of the goods purchased must be above a certain minimum (set by each EU Member State).
• Retailers can either refund the VAT directly or use an intermediary. One of these parties may charge a fee, which may be withheld from the refunded VAT amount.

More on VAT refunds for non-EU tourists on the Your Europe portal

Legal texts

• Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax
• Council Directive 2008/9/EC of 12 February 2008 laying down detailed rules for the refund of value added tax, provided for in Directive 2006/112/EC, to taxable persons not established in the Member State of refund but established in another Member State
• Council Implementing Regulation (EU) 79/2012 of 31 January 2012 laying down detailed rules for implementing certain provisions of Council Regulation (EU) No 904/2010 concerning administrative cooperation and combating fraud in the field of value added tax
• Thirteenth Council Directive 86/560/EEC of 17 November 1986 on the harmonisation of the laws of the Member States relating to turnover taxes - Arrangements for the refund of value added tax to taxable persons not established in Community territory