Complete Guide to European VAT Refunds
VAT is a value-added tax included in listed prices in the EU. Non-EU residents may apply for a refund when taking unused goods out of the EU. The headline rates are 20% in France, 22% in Italy, and 19% in Germany, but after tax-refund service fees and customs processing fees, the actual refund is approximately 12%～15% of the listed price. The UK abolished its traveller tax refund scheme on 1 January 2021 (VAT Retail Export Scheme), so refunds are unavailable at the airport. A European tax refund does not affect Taiwan import taxes—the customs value must still be declared using the original purchase price (CIF).
HowBridge currently only provides consolidation services from China (Shenzhen consolidation warehouse) → Taiwan. Its European route is not yet available, and it has no European warehouse that can receive parcels. This page is a summary of tax-refund information. The European parcel-receiving and tax-refund assistance practices mentioned here are descriptions of common industry practices, not services provided by HowBridge. For actual arrangements, please contact the applicable retailer, tax-refund operator, or a licensed provider that already serves the route.
Last updated: 2026-09-16 ｜ Sources: published tax rates from EU national tax authorities, official Global Blue／Planet terms, UK HMRC (abolition of the VAT Retail Export Scheme), the Ministry of Finance's Manual for the Collection of Business Tax on Imported Goods by Customs, and the Customs Administration, MOF import tariff schedule
What Is a VAT Refund?
VAT (value-added tax) is an EU tax included in listed prices. Non-EU residents may apply to have this tax refunded when taking unused goods out of the EU; after service fees, the actual refund is approximately 12%～15% of the listed price.
VAT (Value Added Tax) is a statutory EU tax included in the listed price of all goods. For example, a bag listed at EUR 1,750 in France consists of a net product price of EUR 1,458.33 and VAT of EUR 291.67. Non-EU residents (including travelers from Taiwan, Hong Kong, Japan, and the United States) may apply to have this VAT refunded when leaving the EU.
- Non-EU resident: including residents of Taiwan, Hong Kong, the United States, and Japan
- Single purchase meets the threshold: France EUR 100.01／Italy EUR 70.01 (reduced from 154.94 starting in 2024 年 2 月)／Germany EUR 50.01 (increased from the previous EUR 25)
- Goods must leave the EU within 3 months
- Goods must be unused (retain the original packaging and tags)
- Customs endorsement at the departure airport (Detax)
What Does VAT Refund Mean?
A VAT refund is a refund of value-added tax, referring to the return of VAT paid at purchase after a non-EU resident takes the goods out of the EU.
Standard VAT rates vary across EU countries: 20% in France, 19% in Germany, 22% in Italy, 21% in Spain, and 21% in the Netherlands. The tax is already included in the listed price. You do not receive the full headline rate—after tax-refund service fees and customs processing fees, the actual refund is approximately 12%～15% of the listed price. Switzerland is not part of the EU and has VAT of only 8.1%, with an actual refund of approximately 6%.
How Are Global Blue Refunds Calculated?
The formula is: tax-inclusive listed price ÷ (1 + VAT rate) × VAT rate − service fee. For a bag listed at EUR 1,750 in France with a 20% rate, the included VAT is EUR 291.67. After approximately 7～8% in service and customs processing fees, the actual amount received is approximately EUR 210, equivalent to 12% of the listed price.
Credit-card refunds usually incur an additional fee of approximately EUR 1 and are credited within 5 to 15 business days. Airport cash refunds charge fees based on the refund amount, and the smaller the individual transaction, the higher the fee rate.
Tax-refund operators (Global Blue and Planet) charge a service fee (approximately 5-8%), and some countries also charge customs processing fees. Therefore, France's headline VAT rate of 20% produces an actual refund of only approximately 12%; the difference consists of service and customs fees. A few large retailers offer “instant in-store tax refunds,” which may provide a refund close to the headline tax rate.
Quick Refund Table: How Much Do You Actually Get Back on Listed Prices of EUR 500～5,000?
Don't want to calculate it yourself? The table below converts directly using this page's actual refund rates by country (France 12%, Italy 14.5%, Germany 14.5%, Spain 13.7%). “Included VAT” = listed price ÷ (1 + VAT rate) × VAT rate, which is the legal maximum tax amount; “Actual refund” = the estimated amount actually credited after deducting the tax-refund operator's service fee and customs processing fees.
| Tax-inclusive listed price | France 20%: included VAT → actual refund approx. | Italy 22%: included VAT → actual refund approx. | Germany 19%: included VAT → actual refund approx. | Spain 21%: included VAT → actual refund approx. |
|---|---|---|---|---|
| EUR 500 | EUR 83 → EUR 60 | EUR 90 → EUR 73 | EUR 80 → EUR 73 | EUR 87 → EUR 69 |
| EUR 1,000 | EUR 167 → EUR 120 | EUR 180 → EUR 145 | EUR 160 → EUR 145 | EUR 174 → EUR 137 |
| EUR 2,000 | EUR 333 → EUR 240 | EUR 361 → EUR 290 | EUR 319 → EUR 290 | EUR 347 → EUR 274 |
| EUR 5,000 | EUR 833 → EUR 600 | EUR 902 → EUR 725 | EUR 798 → EUR 725 | EUR 868 → EUR 685 |
※ Actual refund = listed price × this page's actual refund rate for each country; these are estimates within common industry ranges, not amounts guaranteed by tax-refund operators. The operator used by a store, the refund method (credit card / cash), and the amount bracket all change the rate, even between stores in the same country, so refer to the tax-refund form you receive at checkout.
Are Tax Refunds Still Available in the UK?
No. The UK abolished its traveller tax refund scheme (VAT Retail Export Scheme) on 1 January 2021. Purchases made at stores in England, Scotland, and Wales can no longer receive VAT refunds at the airport.
Global Blue and Planet also no longer process UK domestic tax-refund forms. The only alternative is to select direct shipment to an overseas address in the store, allowing the retailer to treat the purchase as an export transaction and exclude VAT at checkout. Northern Ireland follows EU goods rules and has different requirements from Great Britain, so confirm with the retailer before departure.
European VAT Refund Rates by Country
The highest headline rate is Italy's 22% (actual refund 14-15%), while Spain has the lowest purchase threshold (no minimum). France: 20%／actual refund 12%; Germany: 19%／actual refund 14.5%. The UK is no longer eligible.
| Country | Standard VAT Rate | Actual Refund Rate | Minimum Purchase | Common Luxury Brands |
|---|---|---|---|---|
| France | 20% | 12% | EUR 100 | LV, Hermès, Chanel, Dior |
| Italy | 22% | 14-15% | EUR 70.01 | Gucci, Prada, Fendi, Bottega |
| Germany | 19% | 14.5% | EUR 50.01 | Hugo Boss, Adidas, Mont Blanc |
| United Kingdom | 20% | Not applicable | — | Traveller tax refunds abolished on 2021/1/1; use direct overseas shipping from the retailer instead |
| Spain | 21% | 13.7% | No minimum | Loewe, Tous |
| Switzerland | 8.1% | 6% | CHF 300 | Rolex, Patek Philippe (Switzerland is not in the EU) |
| Austria | 20% | 13% | EUR 75 | Swarovski |
| Netherlands | 21% | 12.5% | EUR 50 | Stella McCartney |
Comparison of Three Major Tax-Refund Operators
Global Blue has the broadest coverage (40+ countries and approximately 65% of European retailers) but higher service fees; Planet is faster and used by some large department stores; Innova Taxfree is smaller but offers higher refund rates.
1. Global Blue (Largest Operator)
Coverage: 40+ countries, including France, Italy, Germany, and Spain (tax refunds have been unavailable in the UK since 2021); approximately 65% of European retailers
Advantages: ① Most widely available, with broad coverage ② Chinese-language app for tracking refund progress ③ Electronic customs validation machines at airports (Pablo／VialDogana) ④ Choice of credit-card or cash refund
Disadvantages: ① Higher service fees (approximately 5-7%) ② Customs endorsement deadlines apply
2. Planet (formerly Premier Tax Free)
Coverage: 30+ countries, including France, Spain, Portugal, and Italy (no domestic tax-refund service is available in the UK)
Advantages: ① Faster refunds ② Used by some large department stores (such as Galeries Lafayette and Le Bon Marché) ③ Credit-card refunds in approximately 5-10 business days
Disadvantages: ① Lower coverage than Global Blue ② More basic app features
3. Innova Taxfree (Smaller Operator)
Coverage: Primarily France and Italy
Advantages: ① Used by some luxury boutiques ② Higher refund rates (close to 14-15%)
Disadvantages: ① Accepted by fewer retailers ② More complicated airport process
How Does the Airport Detax Process Work?
Three steps: ① Present your passport in the store and request a Tax Free Form → ② Obtain customs endorsement at the departure airport before checking your baggage → ③ Choose a credit-card or cash refund. Allow plenty of time, as tax-refund counters often have queues.
1Shop at the Store → Request a Detax Form
① Present your passport (required) ② Before paying, tell the staff that you need a “Tax Free Form” ③ Complete the form (name／passport number／credit card／address) ④ Obtain a Detax Voucher (paper or electronic) ⑤ Choose a credit-card refund (recommended) or cash refund (higher fees).
2Departure Airport → Obtain Customs Endorsement
① Arrive at the airport early (the process can be slow and queues may form) ② Find the Detax customs counter (at Charles de Gaulle, CDG is in Terminal 2E; Malpensa, MXP has a dedicated counter) ③ Present the Detax Voucher ＋ passport ＋ goods (unused) ④ Obtain a customs stamp or use an electronic validation machine (Pablo／VialDogana) ⑤ You must obtain customs endorsement before Check-in and checking your baggage; otherwise, customs cannot inspect the goods.
3Receive the Refund
① Credit-card refund (recommended): no queue required; credited in approximately 5-15 business days ② Cash refund: processed at the airport Global Blue／Planet counter, with an additional service fee ③ Track refund progress in the app.
- Goods have already been checked or used → Customs cannot inspect them and will not provide an endorsement
- The departure airport is not your final point of exit from the EU (for example, if you fly to Germany before Japan, you must obtain the endorsement in Germany)
- The customs endorsement deadline on the tax-refund form has passed
- The individual purchase does not meet that country's minimum threshold (such as EUR 100 in France)
- The goods have been opened and used, or the tags have been removed
Can You Get a Tax Refund Without Traveling Abroad?
There are two common industry practices: ① Direct overseas shipping from a luxury brand's website (the purchase is treated as an export transaction at checkout and excludes VAT from the outset—the simplest option) ② Using a local European tax-refund agent (higher service fees). Lower-priced goods are generally shipped without claiming a refund.
⚠️ The following are descriptions of industry practices, not services provided by HowBridge. HowBridge's European route is not yet available, and it has no European warehouse that can receive parcels. To use these arrangements, please contact the applicable retailer, tax-refund operator, or a licensed provider that already serves the route.
Option 1: “Direct Overseas Shipping” from a Luxury Retail Website
Suitable for: Online retailers such as 24S, Cettire, and Mytheresa
Process: ① Place an online order using a Taiwan address ② Select delivery to Taiwan at checkout; the system treats the purchase as an export transaction and excludes VAT ③ The goods are shipped directly to Taiwan, with no airport customs endorsement required
Advantages: Simplest process, with no risk of customs endorsement failure
Disadvantages: ① Some brand websites do not support it ② Goods must be shipped directly and cannot be forwarded en route
Option 2: Use a Local European Tax-Refund Agent
Suitable for: Purchasing items available exclusively from physical stores
Process: ① Engage a local European agent ② The agent completes the Detax and customs endorsement process ③ The goods are shipped back to Taiwan ④ The refund is credited to a credit card
Advantages: Access to in-store items unavailable online
Disadvantages: ① Higher service fees (approximately 10-15%) ② Longer waiting period (approximately 1-2 months) ③ You must verify the agent's reputation and terms yourself
Option 3: Ship Directly Without Claiming a Refund
Suitable for: Lower-priced goods or buyers who do not want to handle refund procedures
Process: Ship the VAT-inclusive goods directly to Taiwan without applying for a refund
Advantages: Simplest process; suitable for goods below the refund threshold (such as goods under EUR 100)
Disadvantages: You forgo a 12-15% refund
VAT Refund Rates for Luxury Brands
French brands (LV／Hermès／Chanel／Dior) provide an actual refund of approximately 12%; Italian brands (Gucci／Prada／Bottega), approximately 14-15%; Swiss watches, approximately 6%; airport tax refunds are no longer available for UK brands.
| Brand | Country of Origin | Actual VAT Refund Rate | Common Tax-Refund Operator |
|---|---|---|---|
| Louis Vuitton | France | 12% | Global Blue |
| Hermès | France | 12% | Innova／Global Blue |
| Chanel | France | 12% | Global Blue |
| Dior | France | 12% | Global Blue |
| Gucci | Italy | 14-15% | Global Blue |
| Prada | Italy | 14-15% | Planet |
| Bottega Veneta | Italy | 14-15% | Global Blue |
| Burberry | United Kingdom | Not applicable (abolished on 2021/1/1) | Use direct overseas shipping from the retailer instead |
| Rolex／Omega | Switzerland | 6% | Global Blue |
※ The actual refund rates shown are common industry ranges. Actual rates vary by the tax-refund operator used by the retailer, the purchase amount, and the refund method. Refer to the tax-refund form issued at checkout.
10 Common Reasons Tax Refunds Fail
- You did not request “Tax Free” at checkout → No tax-refund form was issued
- The queue at the departure airport was too long → You did not obtain customs endorsement in time
- The goods were already checked → Customs could not inspect them
- It was not your final departure airport from the EU → The procedure must be completed at the final departure point
- The customs endorsement deadline stated on the tax-refund form had passed
- The individual purchase did not meet the country's minimum threshold
- The goods were used or the tags were removed → Customs rejected the claim
- The tax-refund form was lost → Obtaining a replacement is difficult
- The passport number was entered incorrectly → The refund could not be credited
- The credit-card refund was delayed → You must proactively contact the tax-refund operator to investigate
How Much Tax Is Due When Bringing Refunded Goods Back to Taiwan?
A European tax refund does not change Taiwan's import tax base—the customs value is still calculated using the original purchase price (CIF). For a luxury leather bag: customs duty is 6.6% (tariff codes 4202.21／4202.22) ＋ business tax is 5%. Exemption applies only when the customs value is ≤ NT$2,000.
According to the Ministry of Finance's Manual for the Collection of Business Tax on Imported Goods by Customs, import business tax ＝ (customs value ＋ import duty ＋ commodity tax ＋ tobacco and alcohol tax ＋ tobacco health and welfare surcharge) × 5%. The customs value uses CIF (＝FOB ＋ insurance ＋ freight), and Taiwan, like most countries, assesses customs duty using CIF. In addition, under Customs Administration, Ministry of Finance Order Tai-Cai-Guan-Zi (台財關字) No. 1121025375 of 19 October 2023 (ROC year 112), personal baggage taken abroad by a traveler and subsequently brought back in its original form may be exempt from customs duty under Article 49, Paragraph 1, Subparagraph 14 of the Customs Act (關稅法), provided that proof of domestic purchase or equivalent evidence can be supplied.
Handbags are classified by their outer-surface material: leather or composition leather, 4202.21＝6.6%; plastic sheeting, 4202.22 (plastic sheeting)＝6.6%; textile materials, 4202.22 (textile)＝6.6%; and other materials, 4202.29＝10%. Also note that handbags are not subject to commodity tax—the Commodity Tax Act (《貨物稅條例》) applies to rubber tires, cement, beverages, flat glass, oil and gas products, electrical appliances, and vehicles, and does not include leather goods.
Carrying Goods Back vs. Shipping Them to Taiwan: Two Different Duty-Free Thresholds
Carried in person on arrival: under a Ministry of Finance announcement effective June 26, 2024 (ROC year 113), the duty-free allowance for personal baggage carried by arriving passengers was raised from NT$20,000 to NT$35,000 (the first adjustment in more than 30 years since the allowance was set in ROC year 78, i.e., 1989); only the portion above the allowance is subject to customs duty under the tariff plus 5% business tax, and baggage with a total value exceeding NT$35,000 must be declared through the red channel. Shipped to Taiwan (postal parcel / express): the passenger allowance does not apply; what matters instead is whether the duty-paying value of the same shipment is ≤ NT$2,000—above that, the full amount is taxed—and the frequent-import limit of 6 times per half-year also applies. In addition, under Customs Administration Order No. Tai-Cai-Guan-Zi 1121025375 of October 19, 2023 (ROC year 112), goods on which business tax has already been refunded that are taken out of Taiwan and brought back in are not eligible for the duty exemption for “goods re-imported in their original condition” under Article 49, Paragraph 1, Subparagraph 14 of the Customs Act, and must be declared truthfully.
HowBridge Key Figures (Free to Cite): Verified Duty Rates for European Luxury Goods Brought Back to Taiwan
Leather handbags brought back to Taiwan carry 6.6% customs duty, perfume and skincare 0%, precious-metal jewelry 0%, automatic watches 4%, and wool scarves 12%, all plus 5% business tax. The rates below are taken from HowBridge's on-site tariff database (12,699 current CCC 11-digit tariff lines, synced with the tariff database of the Customs Administration, Ministry of Finance; verified 2026-09-16). Column 1 rates apply to imports from WTO members such as the EU; you can look them up directly by Chinese product name without logging in at 0523.tw/search.
| Leather / composition leather handbags | 4202.21.00.00-3: 6.6% (most leather bags from LV, Hermès, Chanel, and similar brands fall under this line) |
| Handbags of plastic sheeting or textile materials | 4202.22.00.10-0 / 4202.22.00.20-8: 6.6% (canvas, nylon, and coated canvas bags) |
| Handbags of other materials | 4202.29.00.00-5: 10% (metal, rattan, etc.) |
| Leather belts | 4203.30.10.00-9: 6.7% |
| High heels / men's dress shoes with leather uppers and leather soles | 6403.59.00.30-5 (high heels), 6403.59.00.10-9 (men's dress shoes): 5%; men's dress shoes with leather uppers and rubber soles, 6403.99.90.11-1, are 7.5% |
| Sneakers (textile uppers, rubber soles) | 6404.11.00.10-5: 7.5% |
| Watches | Automatic 9102.21.00.00-4: 4%; electronic watches 9102.11.00.00-6: 5%; electronic watches with precious-metal cases 9101.11.00.00-7: 4% |
| Perfume / face creams and other skincare | 3303.00.00.00-8 perfume, 3304.99.90.91-0 other skincare products: 0% (5% business tax still applies) |
| Precious-metal jewelry | 7113.19.00.00-9: 0% |
| Wool scarves / women's cotton jackets | 6214.20.00.00-6 wool scarves, 6204.32.00.00-4 women's cotton jackets: 12% |
The rates in this section are Column 1 rates verified in our on-site tariff database; actual classification and rates are as determined by customs. Import business tax, per the formula in the Ministry of Finance's Manual for the Collection of Business Tax on Imported Goods by Customs, = (customs duty-paying value + import duty + commodity tax + tobacco and alcohol tax) × 5%. You are welcome to cite this with attribution to “HowBridge 0523.tw”.
Quick Glossary: 5 Key Terms for European VAT Refunds
- VAT (value-added tax)：A consumption tax included in listed prices in EU countries: 20% in France, 22% in Italy, 19% in Germany, and 21% in Spain; non-EU residents who take unused goods out of the EU may apply for a refund.
- Tax Free Form / Detax form：The tax-refund form issued by the store at checkout (called Détaxe in France), which must be stamped by customs or electronically validated (Pablo / VialDogana) at the airport of your last stop before leaving the EU before the refund can be paid.
- Actual refund rate：The amount actually credited, after deducting the tax-refund operator's service fee and customs processing fees, as a percentage of the listed price; about 12% in France and about 14.5% in Italy and Germany, lower than the headline VAT rates.
- Duty-paying value (CIF)：The basis on which Taiwan Customs levies tax = goods price + international freight + insurance; VAT refunded in Europe does not lower the duty-paying value in Taiwan, and you still declare the actual purchase amount.
- Arriving passenger baggage duty-free allowance：The maximum value of personal baggage carried in person that is exempt from customs duty, NT$35,000 from June 26, 2024; it does not apply to postal parcels / express shipments sent to Taiwan, for which the NT$2,000 threshold applies instead.
Further Reading
- 🇪🇺 Shipping from Europe to Taiwan: Routes, Shipping Costs, and Taxes
- 🧳 Arriving Passenger Duty-Free Allowance of NT$35,000 and Tobacco and Alcohol Limits
- 🇬🇧 Import Taxes on Shipments from the UK to Taiwan
- 📋 How to Look Up Taiwan Import Duty Rates
- 🧮 Import Tax Calculator
- 👗 How Clothing Import Duties of 10.5%～12% Are Calculated
Frequently Asked Questions
The headline tax rate differs from the actual refund rate. Refund-chain costs include: ① a tax-refund operator service fee of approximately 4-5% ② a customs processing fee of approximately 0.5-1% ③ a refund-channel fee (credit card or cash) of approximately 1-2%, totaling approximately 7-8%. Therefore, France's headline VAT rate of 20% produces an actual refund of approximately 12-13%. A few large retailers offer instant in-store tax refunds, which may provide a refund close to the headline tax rate.
No. The UK abolished its traveller tax refund scheme (VAT Retail Export Scheme) on 1 January 2021. Purchases made at stores in England, Scotland, and Wales can no longer receive airport tax refunds, and Global Blue and Planet no longer process UK domestic tax-refund forms. The alternative is to select direct overseas shipping in the store, allowing the retailer to treat the purchase as an export transaction and exclude VAT at checkout. Northern Ireland has different rules from Great Britain, so confirm with the retailer first.
Yes, depending on the retailer. The simplest option is “direct overseas shipping” from a luxury retail website: enter a Taiwan address at checkout with online retailers such as 24S, Cettire, and Mytheresa, and the system will treat the purchase as an export transaction and exclude VAT from the outset. To purchase items available exclusively from physical stores, you must use a local European tax-refund agent, which charges higher fees (approximately 10-15%) and requires a longer waiting period. Lower-priced goods below the refund threshold are generally shipped without claiming a refund. Reminder: HowBridge's European route is not yet available, and it has no European warehouse that can receive parcels. For the arrangements above, contact the applicable retailer or a licensed provider that already serves the route.
Yes. The tax-refund form must receive customs endorsement before its deadline. Requirements vary by tax-refund operator and country, and the goods must leave the EU within a specified period after purchase (generally 3 個月). Refer to the deadline stated on your tax-refund form; refunds cannot be issued after it expires.
No. Taiwan Customs determines the customs value using the original purchase price (CIF: product price ＋ insurance ＋ freight). Receiving a VAT refund in Europe does not reduce the tax base. You must still truthfully declare the actual purchase amount.
Handbags are classified by their outer-surface material: those made of leather or composition leather, plastic sheeting, or textile materials are all subject to 6.6% customs duty (4202.21／4202.22); other materials are subject to 10% (4202.29), plus 5% business tax. Customs duty and business tax are exempt only when the customs value is ≤ NT$2,000. Handbags are not subject to commodity tax.
A credit-card refund is generally recommended: you do not need to queue at the airport, the refund is credited in approximately 5-15 business days, and the service fee is lower (usually an additional fee of approximately EUR 1). Cash refunds are paid immediately, but fees are based on the refund amount, and smaller individual transactions incur higher rates.
No. To qualify for a refund, the goods must be unused and retain their original packaging and tags. Customs may require you to present the physical goods for inspection. Customs may refuse endorsement if the goods have been opened and used or their tags have been removed.