Don’t Miss Out on Over 10% Savings! A Simple Guide to Tax-Free Shopping in the EU

• This article is for reference only as it is merely a translated version of the Japanese article below.
  知らないと「10％以上も損する！」超簡単！EUでの免税手続きをご紹介 (Japanese version)

One of the pleasures of traveling in Europe is shopping. Many people are eager to buy luxury brands at prices lower than those in Japan.

This article provides an overview of the tax-free shopping system within the EU, which allows you to make purchases at a better price.

By using the tax-free system, it is possible to save over 10% on purchases. The process is simple, so be sure to take advantage of it!

What is the Tax-Free Process in the EU?

First, let’s explain the EU’s tax-free system, the conditions under which it can be used, and the items needed for the process.

Overview of the Overseas VAT Refund System

When shopping within the EU, prices include Value Added Tax (VAT). Tourists from outside the EU, such as Japanese visitors, can apply for a refund of the VAT.

VAT is an indirect tax levied on the consumption of goods and services, similar to Japan’s consumption tax.

EU member states are required to implement VAT. The minimum rate is 15%, with no upper limit, and the rate varies by country. Additionally, reduced VAT rates may apply to certain goods, such as essential items like food.

Standard VAT Rates and Conditions for Tax-Free Shopping in EU Countries

To be eligible for a VAT refund, the following conditions must be met:

• A short-term stay of less than six months in the EU (without a long-term stay visa)
• The total amount spent on the same day at tax-free stores must meet or exceed the minimum amount specified by each country
• Upon departure from the EU, have both the purchased goods and the documents received from the store related to the VAT refund
• The goods must be taken out of the EU within three months of purchase in an unopened and unused condition

The standard VAT rates, refund rates, minimum purchase amounts for tax-free eligibility (the minimum purchase amount required per store), and non-taxable items for each country are summarized below

Note: This information is current as of March 2024. Rules in each country are subject to change without notice.

Additionally, the refund rate may vary depending on the purchased goods, the store, and the handling fees of the refund processing agency. The listed rates are for reference only; please check the exact refund rate when applying for the refund.

Items Needed for Tax-Free Shopping in the EU

The following items are required for the tax-free process:

1. Passport

Required to prove non-EU residency at the time of purchase and for customs procedures.

2. Purchased Goods

Must be presented in an unopened and unused state, as they may be inspected by customs upon departure.

3. Tax-Free Form

A document received when purchasing goods at a tax-free store. It includes the purchaser’s information, details of the purchased items, the purchase amount, and the VAT amount.

4. Purchase Receipt

Also required for the refund process; this is received when the goods are purchased.

5. Outbound Flight Ticket or Boarding Pass

Needed to prove departure from the EU during customs procedures.

How to Complete Tax-Free Procedures in the EU

Here are two methods for completing tax-free procedures for goods purchased within the EU. One is receiving a cash refund locally, and the other is obtaining a refund to a credit card after returning to Japan.

Method for Receiving a Cash Refund Locally

This section outlines the general steps for tax-free procedures in France.

Tax-Free Procedures Using the “PABLO” System

In France, tax-free procedures can be easily completed using the PABLO terminals installed at international airports, ports, and border customs.

The process from the time of purchase is as follows:

1. Obtain tax-free documents (Export Sales Form) at the time of purchase.
2. Show a passport at a participating store and indicate the intention to apply for a tax refund.
3. The store will prepare an Export Sales Form (Bordereaux de Vente à l’Exportation – BVE) and assist in selecting the refund method (cash or credit card) and obtaining a signature.
4. Receive the original Export Sales Form, receipt, and a return envelope. Ensure that the goods remain unused and unopened as they must be exported in this condition.

Scan the Export Sales Form at a PABLO Terminal before checking In for the flight.

1. Select the preferred language on the touchscreen (Japanese is also available).
2. Scan the barcode on the Export Sales Form.
3. When a green screen displaying “OK Approved Tax-Free Form” appears, the process is complete.
4. Receive a cash refund in euros at the currency exchange counter if chosen.

Quote: www.douane.gouv.fr

If opting for a refund to a credit card, place all documents in the return envelope and drop them into a nearby mailbox.

Note: If the PABLO screen turns red, follow the instructions on the screen. It may be necessary to complete the procedure at a tax-free counter, so be prepared to show a passport, airline ticket, and the purchased goods (unopened).

Method for Receiving a Refund to a Credit Card After Returning to Japan

Next, this section outlines the method for completing the refund application process after returning to Japan. This method is useful if there is a language barrier abroad, if the location of a mailbox is unknown, or if there is not enough time to mail the documents before departure. In these cases, documents can be mailed from an airport in Japan.

Getting a refund credited to a credit card means the refund will be in JPY, thus avoiding currency exchange fees from euros to JPY.

Refund Procedure with Global Blue in Japan

This section describes the refund procedure with Global Blue, the largest tax-free processing agency.

1. Obtain tax-free documents at the time of purchase

At a store with the Global Blue logo, make a purchase that meets the minimum amount for tax-free eligibility, present a passport, and have the tax-free documents prepared.

Quote: Global Blue

2. Ensure there are no errors in the name, address, passport number, purchase amount, etc., and sign the documents.

3. Bring the tax-free documents, passport, original receipt, unopened goods, and boarding pass or airline ticket to airport customs and have them stamped (Export Approval Stamp).

4. After returning to Japan, drop the documents into a Global Blue dedicated box at the airport.

Global Blue has dedicated boxes and refund counters at Narita Airport, Kansai Airport, and Chubu International Airport. If the documents were not mailed at the airport, it is also possible to submit them by general mail.

Quote: www.centrair.jp

5. Receive the refund to a credit card

The refund process to a credit card typically takes 1–2 months and will appear as a credit (negative entry) on the monthly statement.

Important Points for Tax-Free Shopping in the EU

Here are some rules specific to the EU and preparations for potential issues.

Tax-Free Procedures Must Be Completed at the Final Departure Point within the EU

If traveling through multiple countries within the EU, VAT refunds must be applied for in the country from which you are ultimately departing the EU.

For example, if traveling from France to Italy and then returning to Japan, the refund application must be submitted in Italy. Be sure to keep all tax-free documents received from each country.

Take Photos of Submitted Documents to Prepare for Any Issues

To prepare for potential problems, such as the application not being processed, take photos of all stamped tax-free documents before mailing them. This allows you to review the information or use it as evidence if necessary.

Choosing the Right Credit Card is Key to Saving Money on Overseas Travel!

Another important consideration for saving money on overseas travel is choosing the right credit card. For those looking to find a card that suits them, considering factors like low fees and benefits, this article is recommended: [7 Best Credit Cards for Overseas Travel: Fee and Reward Rate Comparison].

Be sure to read it before your next trip abroad!

This time, an explanation was provided about the tax-free procedures in the EU. Many EU member states impose a value-added tax (VAT) of over 20%, making tax-free shopping a great way to save money.

Tax refund kiosks like Pablo are available in Japanese, and documents can be mailed after returning home, making the process easier than expected. When traveling in the EU, be sure to take advantage of tax-free shopping!