Why is the required amount for EU VAT refund so high and it must come from a single shop? [closed]

EU VAT is so expensive averaging about 20%. However, there is a huge barrier to refund the tax.

Take Portugal as an example, the minimum amount required is EUR 61.35 (23% VAT) from a single store! How the heck is possible to buy so much stuff from a single point in the trip?! Even buying souvenirs all the way in my trip getting EUR 100 is ineligible!

This kind is barrier is certainly detrimental to shopping tourism such that I normally refrain from shopping in my trips. It would be great if I can get tax refund even on an EUR 5 purchase, then I can buy a lot of "cheap groceries" to fill up my luggage allowance just before I leave the country and claim tax back.

What's the purpose of setting up VAT refund scheme if the barrier of entry is SO HIGH?

Best Answer

According to the VAT Refund EU Guide https://ec.europa.eu/taxation_customs/individuals/travelling/travellers-leaving-eu/guide-vat-refund-visitors-eu_en the limit is set to avoid administrative burdens over small-value items.

Pictures about "Why is the required amount for EU VAT refund so high and it must come from a single shop? [closed]"

Why is the required amount for EU VAT refund so high and it must come from a single shop? [closed] - Head of man lying on water with flowers

Why is the required amount for EU VAT refund so high and it must come from a single shop? [closed] - Raw penne for making dish on table

Why is the required amount for EU VAT refund so high and it must come from a single shop? [closed] - From below of wild bird soaring over white clouds on sky at sundown

How does EU refund work?

In general expect to receive a refund between 10 and 16% of the total VAT you have paid. To the original 22% you should deduct administrative fee and as well as the fee of the tourism tax company.

Which European country has the highest VAT refund?

VAT Rates and Minimum Purchases Required to Qualify for RefundsCountry of PurchaseVAT Standard Rate*Minimum in Local CurrencyFrance20%\u20ac175.01Germany19%\u20ac25Great Britain20%\xa330Greece24%\u20ac5028 more rows

How much VAT do you get back in Europe?

In the European Union, the VAT rate generally ranges from 5 to 25%, depending on the country. Some of them apply different rates of VAT according to the type of product or service, generally categorized as \u201cstandard\u201d, \u201creduced\u201d, and \u201csuper-reduced\u201d.

How do I get my full VAT refund?

The big refund agencies have facilities at all the major EU airports; sometimes, they're at a currency exchange. Just show them your stamped customs forms and your passport and you'll get your refund, minus a fee. VAT refund agencies like Global Blue have locations in major airports where you can get your VAT refund.

VAT Refund - Everything You Need to Know | AmandaRaeRevue

Sources: Stack Exchange - This article follows the attribution requirements of Stack Exchange and is licensed under CC BY-SA 3.0.

Images: Karolina Grabowska, Darya Sannikova, Klaus Nielsen, Lucas Pezeta