What is tax free? How to do it? Tax Free Guide

Traveling abroad offers a great experience for both discovering new cultures and taking advantage of attractive shopping opportunities. One of the most important advantages that makes this experience even more economical is the Tax Free system. Especially in international shopping, the ability to get back the VAT paid for purchased products provides a great saving for tourists. However, in order to benefit from this system, it is necessary to understand the process correctly and complete the necessary steps completely.
In this article, we explain step by step what Tax Free is, which products it can be used on and how. If you want to use your budget more efficiently during your travels, this guide is for you!

What is Tax Free? What are its advantages?

Tax free is a system where tourists who shop abroad can get back the Value Added Tax (VAT) they pay on the products they buy. This practice is an advantage that foreigners who visit the country temporarily can benefit from, rather than locals. Tourists can request this refund with certain documents when they leave the country.
For example, in Europe, VAT rates can be as high as 20%, and with the tax-free system, this rate can be rolled back, providing significant savings. This offers both an economic shopping opportunity and encourages visitors to the country.

Advantages:

• Savings Opportunity : Shopping becomes more economical with the VAT reclaimed.
• More Savings on Luxury Items : Tax Free offers significant savings, especially on luxury items with high taxes.
• Comprehensive Use : Many products such as clothing, electronics, jewelry, cosmetics can be considered Tax Free.

What are the conditions required to benefit from Tax Free?

To benefit from the tax free advantage, you must meet the following conditions:

1. Being a Tourist

Tax-free is only available if you are shopping in a country you are not resident in. This practice is generally available to people who are not citizens or long-term residents of that country.

2. Meeting the Minimum Spending Limit

To be eligible for a tax-free refund, your purchase must exceed the minimum spend set by your country. For example:

• In Germany the minimum spending limit is around 50 euros,
• In Switzerland it is around 300 Swiss Francs.

3. Request a Tax Free Shopping Receipt

The store you shop from must be included in the tax free system. You should not forget to get a tax free receipt from the store during payment. This receipt is the document required to get a VAT refund.

4. Taking Products Out of Country

The tax free system only applies if you can prove that you will take the products out of the country. Therefore:

• You must keep your products in your suitcase and unused.
• You must have your tax free documents approved by the authorities at the airport or border gate from which you will exit.

5. Claiming a Tax Refund

You can request your refund by submitting the required documents to the tax free office at the airport or by filling out the relevant form and sending it by post. You can receive your refund immediately in cash or it can be transferred to your bank account or credit card.

6. Performing Transactions Within a Certain Period of Time

Tax free transactions must be completed within a certain period of time from the date of purchase. This period varies from country to country, but is usually between 3-6 months. In order not to exceed the period, you must process your documents on time.
The tax free system, when implemented correctly, will help you make significant savings on your purchases abroad. So don't forget to take these conditions into consideration when shopping!

How to Get Tax Free Refund Abroad? Step by Step Guide

When you go abroad, you both travel and enjoy shopping. However, most people do not fully know the Tax Free advantage or do not take advantage of this opportunity. However, if you follow the right steps, you can get back the VAT you paid on the products you purchased and make serious savings! Here are the steps you need to follow to get a Tax Free refund abroad:

1. Find Stores That Offer Tax Free Advantage

When shopping abroad, you should shop from stores that are included in the Tax Free system.

• There are often "Tax Free" or "VAT Refund" stickers in shop windows.
• If you are unsure, ask store staff before you shop if they offer this service.

Tip : Many stores, from luxury brands to souvenirs, are included in this system.

2. Don't Forget to Get Your Tax Free Receipt During Payment

Be sure to request a Tax Free document at the cash register when making your payment.

• This document includes details of your purchases and the VAT amount you paid.
• Your passport is required to fill out the form, so carry it with you.

Note : You should not lose this document, as it is the basic document for obtaining a tax free refund!

3. Store Your Products When Not in Use

To get a tax free refund, you need to prove that you will be taking your products out of the country. Therefore:

• You should not use the products and keep them in their original packaging.
• Customs officials may ask to see your items, so organize your luggage for easy access.

Pro Tip : It may be difficult to get a return for products that have been used or have had their tags removed.

4. Get Customs Clearance at the Airport

Before leaving the country, you must stop by customs officials at the airport.

• Show your Tax Free documents, receipts and passport to the customs officer.
• Officers may ask to see your items, so be sure to check your bags before checking in.

Remember : Customs offices at the airport can be busy. Plan to arrive early to catch your flight.

5. Request Your Refund

Once you have received customs approval, it's time to request a refund. There are a few ways to get your refund:

• Cash Refund : Some airports have Tax Free offices that offer cash refunds. You can collect your VAT in cash by handing over your documents.
• Refund to Credit Card : If you fill in your card information in the form, the refund amount will be transferred to the account you specified.
• By Mail : If you cannot process the transaction at the airport, you can request a refund by mailing the documents to the relevant company.

Tip : Whichever method you choose, make sure you submit your documents in full.

6. Check Spending Limit and Duration

Each country's tax free system is different, so you should check these two details:

• Minimum Spending Limit : You must spend a certain amount to get a tax free refund. For example, 50 Euros in Germany, 154 Euros in Italy.
• Application Period : You must request a refund generally within 3-6 months from the purchase date.

Tax Free Procedures and Required Documents at the Airport

In order to get back the VAT (Value Added Tax) you paid for your purchases abroad, you need to follow certain steps at the airport. With the right documents and by following the procedures, you can get your refund without any problems. Here are the step-by-step tax free procedures at the airport:

1. Get Customs Approval Before Check-in

Arrive at the airport early, as tax free procedures can take time.

• First, go to the customs office before checking your luggage in.
• Customs officials will examine your tax free documents, passport and shopping receipts.
• If you purchased a large item (e.g. electronics), be prepared to physically demonstrate the item.

Note : Keep the products in an easily accessible place in your suitcase.

2. Go to Tax Free Refund Point

After receiving your customs approval, head to the Tax Free refund office.
You can complete your refund request here.
Return methods:

• Cash back : You can get your refund directly in cash.
• Refund to credit card : Your VAT refund will be transferred to your credit card.
• Refund to bank account : If you specify your bank information in the form, the payment will be transferred to your account.

3. Send Your Documents by Mail (If Necessary)

• If there is no refund office at the airport, you can send the documents by post to a Tax Free company (Global Blue, Planet Tax Free etc.).
• The relevant envelope and address information is usually stated on the tax free document you receive from the store.

Tip : If you are sending mail, make sure to make photocopies of the documents to be on the safe side.

Documents Required for Tax Free Transactions

• Passport : Required to prove your identity while shopping and at customs.
• Tax Free Certificate : The VAT return form you received from the store you shopped from (for example, the Global Blue form).
• Sales Receipts : Original invoices for your purchases.
• Products : The products you purchase must be unused and in their original packaging.
• Airline Ticket or Travel Document : Required to prove that you have left the country.

Tips to Speed Up Transactions

• Arrive at the airport at least 2 hours in advance to give yourself time to complete your procedures.
• Prepare your documents and products in an orderly manner.
• Decide in advance whether you will receive a refund in cash or by card and fill out the relevant forms.
• Check in advance which customs office you need to go to (they may be located differently at each airport).

For which products is Tax Free Refund valid/not valid?

The Tax Free (tax refund) system usually offers tourists who shop abroad the opportunity to get back the VAT on the products they buy. However, this refund is only valid for certain products. Although tax free practices may vary from country to country, products in certain categories are generally included in the refund. Here are the main products that tax free refund is valid for:

1. Fashion and Clothing Products

Clothing, shoes and accessories are the most popular items included in tax free refunds. Tax refunds are often applied especially for purchases made in luxury brand stores.

• Products such as dresses, bags, shoes and jewelry are tax free.

2. Electronic Products

Electronics are another category where the tax-free system is common. Especially technology products such as mobile phones, tablets, and computers are subject to tax-free refunds when shopping abroad.

• Accessories such as digital cameras, smart watches and headphones are also included in the return scope.

3. Perfume and Cosmetics Products

Abroad, cosmetic products such as perfumes, make-up materials and skin care products are also subject to tax free refund.

• Luxury perfume brands and skin care sets are included in this category.

4. Jewelry and Watches

Jewelry and watches are also a category where tax free refunds can be applied frequently. Products such as gold, silver, handmade jewelry and luxury watches are included in this scope.

• Wristwatches, rings, necklaces, bracelets can be refunded tax free.

5. Souvenirs and Souvenirs

Souvenirs and souvenirs purchased from abroad can benefit from tax free tax refunds.

• Works of art, handmade souvenirs and touristic objects may be included in the tax free category.

6. Household Goods and Kitchen Products

In some countries, kitchenware, home decoration products and tableware may also be tax free.

• Items such as plates, glasses, cutlery sets may be eligible for a tax refund.

7. Children's Products and Toys

Toys, clothes and other products purchased for children may also be included in the tax free refund.

• Products such as toys, baby products and children's clothing are included in this category.

8. Medicines and Health Products

In some countries, vitamins, food supplements and some medical products, especially those sold without a prescription, may be eligible for tax-free refunds.

• Health supplies and especially tourist health products can also be evaluated within this scope.

Products You Cannot Get Tax Free Refund

Tax free refunds generally do not apply to certain items, such as used goods, services (like hotel accommodations), food products, and alcoholic beverages. Additionally, in some countries, items such as used clothing or personal care products are not eligible for a tax refund.

What are Tax Free Rates? Tax Free Calculation

The Value Added Tax (VAT) you pay when shopping abroad can be refunded thanks to the tax free system. However, how much tax refund will be varies from country to country because each country's tax rate is different. In this article, you will find detailed information about how tax free rates are calculated and how much refund you can get.

How Are Tax Free Rates Calculated?

The tax free rate is usually based on the VAT rate and varies depending on the tax regulations of the country you are shopping in. This rate is usually calculated as a percentage of the price of the item you are purchasing. For example, if a country has a VAT rate of 20%, you can get a tax refund of 20% of your purchase in that country. However, the tax free refund is not always the exact VAT rate, as certain deductions and processing fees may apply.

Deductions and Fees on Tax Free Refund

A tax free refund usually does not reflect the full VAT amount, as certain deductions and processing fees may apply during the processing process. These deductions usually include:

• Processing Fees : Companies that provide tax-free services (e.g. Global Blue, Planet Tax Free) charge a service fee. This can typically range from 1% to 5%.
• Customs Clearance Fee : A fee may be required to complete customs clearance.
• Type of Purchase Made : For larger purchases (for example, purchases from luxury brands), the tax refund rate may be higher.

Tax Free Countries

Tax free is a tax refund system applied to tourists when shopping abroad. However, each country's tax system is different and tax free applications are valid in some countries and not in others. Below are popular countries with tax free applications. To get definitive information on this subject, you should make sure to check whether the country you are going to visit has a tax free application before you go.

• France
• Italy
• Germany
• Spain
• Holland
• Belgium
• Portugal
• Austria
• Swedish
• England
• Wales
• Scotland
• Northern Ireland
• Switzerland
• Japan
• South Korea
• Thailand Australia
• Canada
• Brazil
• Singapore