Visitors who take goods home can usually reclaim the sales tax they paid on them: VAT in Europe, consumption tax in Japan, GST elsewhere. The headline rates are large, 20 percent in France and 22 percent in Italy, and the holiday shopping season is when most travellers try it.
What arrives back in your account is often much less. Refund companies keep a cut, minimum purchase rules differ by country, the paperwork has to be validated before you check in, and the refund is frequently converted into your home currency at a rate you did not choose. And from 1 November 2026, Japan, one of the biggest tax-free shopping destinations, works differently. Here is how it works now.
The Short Answer
It is worth claiming on big purchases, not on souvenirs. In the EU you typically get back 10 to 15 percent of the price, not the full VAT rate, after the refund operator's fee. Shop in one store on one day to reach the minimum, ask for the tax-free form at the till with your passport, and validate it at the airport before you check in any bag holding the goods.
In Japan, the tax is now refunded, not removed. For purchases from 1 November 2026, you pay the full price including the 10 percent consumption tax, then complete a customs check at the airport, and the store or its refund provider pays you back.
Take the refund in the currency you paid in when you are offered a choice, and let your own card convert it. A refund converted into dollars by the refund company can lose 3 to 5 percent on the way.
Japan: Tax-Free Shopping Became a Refund on 1 November 2026
What changed. Until 31 October 2026, Japanese tax-free shops removed the consumption tax at the till when you showed your passport. For purchases made from 1 November 2026, you pay the tax-inclusive price, and the tax is refunded after Japanese customs confirms that the goods are leaving the country with you.
The threshold and the limits. You still need to spend at least 5,000 yen before tax in one store on one day. The old split between consumables and general goods is gone, and so is the 500,000-yen cap on consumables, but quantities must be what you can carry out yourself. Goods must leave Japan within 90 days of purchase, and consumables must not be opened.
At the airport. Before check-in, complete the departure procedure at a customs terminal in the departure lobby or through Visit Japan Web. A green result lets you go on to check in; a red result means an inspection, so keep the goods in your hand luggage or show them before you check the bag. Every item on a receipt must be present: if one is missing, the whole receipt loses its refund. The refund is paid by the method the store set out when you bought, usually back to the card you paid with, so ask at the till. Our Japan cash culture guide covers the rest of paying in Japan.
Europe: Minimums, Forms and the Last Exit
Who qualifies. Visitors who live outside the European Union and take goods out of the EU, unused, by the end of the third month after the month of purchase. The claim is made in the last EU country you leave, not the country where you shopped: a bag bought in Paris and carried through Rome is validated in Rome.
Minimums differ by country. France requires more than €100 in one store on one day; Germany about €50; Italy €70, lowered from €154.94 in 2024; and Spain has no minimum. Ask the shop for the tax-free form, or the digital equivalent, when you pay, and have your passport with you.
Validation. At the airport, find the customs kiosk or desk before security, scan the form and be ready to show the goods. France's kiosks are called PABLO, Spain's DIVA; Italy has moved to a digital system that validates most forms electronically. If the goods are in a suitcase you are checking in, validate first. Without the customs stamp or digital validation, there is no refund.
Not everywhere. The United Kingdom abolished VAT refunds for tourists in 2021 and has not brought them back, so Heathrow shopping is the only tax-free option there. Switzerland refunds its lower 8.1 percent VAT on purchases of at least CHF 300 on one receipt, through a similar process at Geneva and Zurich airports.
Why You Get Back Less Than the VAT Rate
The operator's cut. Most shops hand the paperwork to a refund company such as Global Blue or Planet, which pays you and keeps a handling fee. On a €1,000 handbag in France, the VAT inside the price is about €167, but the refund shown on the form is typically around €120. The smaller the purchase, the bigger the fee as a share.
The math on the price. VAT is included in the price, so 20 percent VAT is one-sixth of what you pay, not one-fifth. A 20 percent rate never means 20 percent back.
Ask before you buy. Large department stores often run their own tax-free desks, and operators differ in what they keep. Ask at the counter which operator the shop uses and what the refund on your purchase will be.
Keep the Whole Refund
A Wise card converts refunds and purchases at the mid-market rate, with no foreign transaction fee, so the refund company's exchange rate is the only one you have to refuse.
Get the Wise Card →Free account, ~$9 card fee. Want cash on arrival? Order currency before you fly →
Cash or Card: Where the Refund Leaks
Refund to your card. The safest choice: the money goes back to a card, usually within weeks of validation. The catch is the currency. Refund operators often credit a card in its billing currency, so a euro refund to an American card is converted to dollars by the operator, at its own rate, losing 3 to 5 percent. If you are offered the refund in euros, or the yen of the purchase, take it, and let your card's network do the conversion.
Cash at the airport. Refund desks at large airports pay cash immediately, but usually charge an extra fee for it, and cash in dollars rather than euros means another conversion. Take cash only if it is in the local currency and you will spend it before you fly, or if you are leaving from a smaller airport where a card refund is slow to arrive.
Use a card with no foreign fee. If the refund arrives in a foreign currency, a card that converts at the network or mid-market rate, such as a Wise card or a Schwab debit card, keeps the whole amount. Our guide to dynamic currency conversion explains why the operator's rate is the one to avoid.
Mistakes That Cost the Whole Refund
Checking the bag first. If customs wants to see the goods and they are already in the hold, the refund is lost. In Japan, a missing item voids the whole receipt.
Leaving from the wrong place. The form must be validated where you leave the EU or Japan. A train to London from Paris, or a connection through Zurich, can mean the stamp has to be obtained somewhere you did not plan for.
Using the goods. Wearing the shoes on the trip, or opening the cosmetics, can disqualify them. Keep tags on and packaging sealed until you are home.
Splitting purchases. Minimums apply per store, per day, and usually per receipt. Two €60 visits to the same shop in France on different days qualify for nothing; one €120 visit does.
Frequently Asked Questions
How does tax-free shopping in Japan work from November 2026?
For purchases from 1 November 2026, you pay the full price including consumption tax. Before checking in for your flight home, you complete a customs procedure at a terminal in the departure lobby or through Visit Japan Web, and after customs confirms the goods are leaving with you, the store or its refund provider refunds the tax. The minimum is still 5,000 yen before tax per store per day.
How much VAT do tourists get back in Europe?
Usually 10 to 15 percent of the price, not the full VAT rate. The VAT is already inside the price, so a 20 percent rate is one-sixth of what you paid, and refund companies keep a handling fee. Larger purchases get a better share back.
What is the minimum purchase for a VAT refund in France, Italy, Germany and Spain?
France requires more than 100 euros in one store on one day, Italy 70 euros, Germany about 50 euros, and Spain has no minimum. Check with the shop, as thresholds are per store and usually per receipt.
Can you get a VAT refund in the UK?
No. The UK ended VAT refunds for overseas visitors in January 2021 and has not reinstated them. Airside shops at UK airports still sell tax-free goods to passengers flying out.
Should I take my VAT refund in cash or on my card?
On a card, in the currency of the purchase if you are offered the choice. Cash refunds usually carry an extra fee, and a refund converted into dollars by the refund company can lose 3 to 5 percent.
Where do I validate a VAT refund if I visit several EU countries?
At the last EU country you leave, before you check in the goods. Forms from shops in France or Italy are validated at the airport where you leave the EU, which may be in another country.
The Bottom Line
A tax refund is worth the queue on a big purchase and rarely on small ones. Shop in one store in one day, ask for the form with your passport, validate before you check in, and take the refund in the currency you paid in.
In Japan, remember that from 1 November 2026 nothing comes off at the till: you pay in full and claim at the airport, with every item on the receipt in your hand.
Our guide to the best debit cards for international travel lists the cards that convert refunds at a fair rate, and CEI Currency Exchange can deliver foreign cash before you fly.
Hero photo: a tax refund counter in an outlet mall in Okinawa, Japan, by Naha Mama Pavilionz, CC0, via Wikimedia Commons.