The refund amount depends on what you paid and where you bought it
Airport tax refunds are not a fixed amount — they depend entirely on the tax you paid at the point of sale. If you bought a €100 item in France and paid 20% VAT (value-added tax), you paid €20 in tax. Your refund will be approximately €20, minus a processing fee that the refund company takes.
The tax rate itself varies by country and by what you bought. France charges 20% VAT on most goods. Germany charges 19%. Some countries have lower rates for specific items like books or food. The United States does not have a national VAT, but individual states charge sales tax that ranges from 0% to roughly 10%, and most US states do not offer refunds to foreign visitors at all.
What you actually receive in your pocket is less than the tax you paid, because the refund company or retailer takes a cut. That fee typically ranges from 10% to 25% of the refund amount, though it varies by company and by how you claim the refund.
Key Takeaways
- Your refund amount equals the tax you paid at purchase, which is printed on your receipt — usually between 15% and 25% of the item price depending on the country.
- The refund company deducts a processing fee of 10% to 25% of your refund, so you receive 75% to 90% of the tax you originally paid.
- Claiming by credit card refund typically costs less in fees than claiming at the airport, because the refund company has lower overhead.
- Tax-free shopping thresholds vary by country — you must spend a minimum amount (often €25 to €100) in a single store on a single day to be may be able to access for any refund.
How the processing fee reduces your refund
When you claim a refund, you are not dealing directly with the government. You are dealing with a private refund company — Global Blue, Planet, Innova, or another processor — that the retailer has contracted with. That company handles the paperwork, collects the tax documentation, and sends the money back to you. For that service, they keep a percentage.
The fee structure depends on how you claim. If you claim at the airport in cash, the fee is typically 15% to 25% of your refund. If you claim by credit card (the refund posts to your card weeks later), the fee is often 10% to 15%. If you claim by mail after you leave the country, the fee may be lower still, but the process takes longer and you have to pay postage.
Example: You buy a €200 handbag in Italy and pay €40 in VAT (20% rate). You claim the refund at the airport in cash. The refund company takes 20% of your €40 refund, which is €8. You receive €32 in cash. If you had claimed by credit card instead, the fee might be 12%, leaving you with €35.20 posted to your card in 4 to 8 weeks.
Minimum purchase amounts and what counts toward them
You cannot claim a refund on a single €10 item, no matter what country you are in. Each country sets a minimum purchase threshold — the total amount you must spend in one store on one day before any refund is possible. That threshold is not the same everywhere.
France requires €100 minimum. Germany requires €50. Italy requires €155. Spain requires €90.16. The United Kingdom requires £145. These thresholds explore to the pre-tax price of the goods, not the total including tax. If a store's refund threshold is higher than the country minimum, the store's threshold applies.
Only goods you are taking out of the country count toward the threshold. Services, meals, and hotel stays do not. In most countries, goods you are shipping to your home address after purchase do not count either — the goods must physically leave the country in your luggage or checked bag.
What happens if you do not meet the minimum
If you spend €60 in a German store with a €50 minimum, you meet the threshold and can claim a refund on the full €60. If you spend €40, you do not meet the minimum and cannot claim anything — not even on the portion above some lower amount. It is all or nothing for that store.
Some travelers try to combine purchases across multiple stores to reach the threshold. This does not work. Each store is counted separately. You must spend the minimum in a single store on a single day. Purchases from the same store on different days do not combine, and purchases from different stores never combine, even if they are in the same shopping mall or city.
Tax rates by country and product type
The standard VAT rate in most European countries is between 17% and 25%. Some countries offer reduced rates on specific items. France charges 20% on most goods but 5.5% on books and 2.1% on certain medications. Germany charges 19% standard but 7% on books and food. Poland charges 23% standard but 5% on food and 0% on some medications.
The United States has no national VAT. Instead, individual states charge sales tax ranging from 0% (in states like Delaware, Montana, New Hampshire, and Oregon) to roughly 10% (in states like Tennessee and Louisiana). Most US states do not offer tax refunds to foreign visitors. A few states like Louisiana have limited refund programs, but they are not widely available and require specific documentation.
Canada charges a federal GST (Goods and Services Tax) of 5%, plus provincial sales tax that varies by province. Foreign visitors can claim a GST refund but not the provincial portion. Australia charges 10% GST with a refund available to visitors. Japan charges 10% consumption tax with a refund available at certain retailers.
Why your refund might be less than expected
The most common reason a refund is smaller than anticipated is the processing fee, which many people do not account for until they see the final amount. The second reason is that some items are not may be able to access for refunds even in countries that offer them. Alcohol, tobacco, and fuel are often excluded. Some countries exclude items you have already used or consumed.
Another reason is currency conversion. If you claim your refund in a currency different from the one you paid in, the refund company applies an exchange rate that is typically 2% to 4% worse than the mid-market rate. If you paid in euros but claim in US dollars, you lose money on the conversion. Claiming in the original currency, when possible, preserves more of your refund.
Finally, if you do not have the correct paperwork when you claim, you may not receive the full refund or any refund at all. The refund form must be stamped by customs before you leave the country. If you leave the country without the stamp, or if you lose the form, the refund company has no proof you exported the goods and will deny the claim.
How to estimate your refund before you buy
Before you make a purchase, ask the retailer what the VAT rate is and what the refund company's fee is. Most retailers have this information readily available. Then use this straightforward calculation: (Purchase Price × VAT Rate) − (Refund Amount × Refund Company Fee) = Your Cash Refund.
Example: You are buying a €500 coat in France. VAT is 20%, so the tax is €100. The refund company charges 15% fee. Your refund is €100 − (€100 × 0.15) = €85. You will receive approximately €85 when you claim at the airport, or slightly more if you claim by credit card.
Keep in mind this is an estimate. The exact amount depends on the refund company's specific fee structure, which can vary by retailer and by how you claim. Some companies charge a flat fee instead of a percentage. Always ask the retailer for a written estimate before you complete the purchase if the amount matters to you.
Frequently Asked Questions
Can I combine purchases from different stores to reach the minimum threshold?
No. Each store is counted separately, and you must meet the minimum in a single store on a single day. Purchases from different stores, even in the same city or mall, do not combine. Purchases from the same store on different days also do not combine.
What if I claim my refund in a different currency than I paid in?
The refund company will convert the amount using their exchange rate, which is typically 2% to 4% worse than the mid-market rate. You lose money on the conversion. Claim in the original currency whenever possible to preserve more of your refund.
Do I get the full tax amount back, or is there always a fee?
There is always a fee. The refund company deducts 10% to 25% of your refund as a processing fee. Claiming by credit card usually costs less in fees than claiming in cash at the airport. You receive 75% to 90% of the tax you originally paid.
Are there items that cannot be refunded even if I meet the minimum?
Yes. Alcohol, tobacco, and fuel are typically excluded in most countries. Some countries also exclude items you have already used or consumed. Ask the retailer before you buy whether a specific item is may be able to access for refund.
What happens if I lose my refund form before I leave the country?
You will not receive a refund. The form must be stamped by customs before you leave, and the refund company needs that stamp as proof you exported the goods. If you lose the form or forget to get it stamped, the claim will be denied.