VAT Tax

November 5, 2006 10:23 AM

I just returned from Europe, and looking at the hotel bill I noticed a rather large VAT figure. I know there's ways to get a refund for purchases, but does it apply to things like hotels, and if so, does anyone know how to get a refund (now that I'm back home?).
posted by jgballard to Travel & Transportation (4 answers total)

IIRC, as with sales tax here in the states, the only way you can get a refund is if the product you purchased was something tangible that you brought home with you. If it was consumed in the place that charged the VAT, you do owe the VAT on it.
posted by SpecialK at 10:26 AM on November 5, 2006

Based on the information on this page, it might depend on whether the trip was business or personal:

While both business travelers and tourists are entitled to VAT refunds, the refund opportunities differ greatly. Tourists can apply for VAT refunds on merchandise, but not services. Custom officials must validate this merchandise to prove that the merchandise is indeed leaving the country. Business refunds, however, also include a wide range of services and do not require customs validation. The individual business traveler's employer files for refunds on their behalf.

posted by camcgee at 10:32 AM on November 5, 2006

Also, it's my understanding that in order to get the VAT credited, you need to ask for and get a special receipt when purchasing the item and then turn it in with more paperwork when you leave the country in question. I guess technically this might be possible after you left, but yeah. For future reference, I guess.
posted by trevyn at 10:55 AM on November 5, 2006

Incidentally, VAT stands for "Value Added Tax", and therefore if you add "Tax" after it, you've written "Value Added Tax Tax", which doesn't make much sense. (Just like PIN number).

By the way, for the Europeans amongst us, if you buy stuff in Norway, you can claim your sales tax back - which is up to 20% there - as long as you don't live in Scandinavia. (As with all tax-back purchases, all purchases need to remain sealed until after you get back home).
posted by jamescridland at 1:06 PM on November 5, 2006