The Tax Refund Many U.S. Travelers to Europe Overlook

If you’re shopping in Europe and not asking for your value-added tax back, you could be walking away from easy cash. On a recent trip to Italy, my girlfriend bought a pair of shoes in Venice for 155 euros. She got 17 euros refunded—about $20—just by filling out a simple form at the airport. That’s money that would have stayed in the shop’s pocket if the clerk hadn’t offered the paperwork.

Value-added taxes, or VAT, are built into the price of goods across Europe. Rates vary widely—from 8.1% in Switzerland to 27% in Hungary. For U.S. travelers, claiming that refund can help offset pricier airfare or a less favorable exchange rate. But many stores don’t mention it. “You personally have to be proactive,” says travel advisor Sofia Markovich. “Not every shop will remind you.”

The catch? You usually need to spend a minimum at a single store. In Italy, that’s 75 euros; in France, 100 euros; in Greece, 50 euros. Spain has no minimum. And the refund only applies to merchandise—hotels and meals don’t count. If you’re buying luxury goods like designer bags or jewelry, the savings can be substantial. Markovich says she knows people who fly to Europe just to shop.

The process is straightforward but requires a small time investment. At your final European stop—usually an airport—you get your documents stamped by customs, then hand them to a refund service like Global Blue. That service takes a fee of about 4%. You also need to keep your items unused. Rick Steves warns that wearing your new purchase through customs could get you denied.

For big-ticket buys, it’s a no-brainer. For a $10 savings, travel expert Sally French says it’s fine to skip the line. “Time is money,” she notes. But if you’re dropping serious cash, that extra stop at the airport kiosk can put hundreds—even thousands—back in your pocket.