VAT refund in Germany: A complete guide to tax-free shopping in Germany for tourists

Are you tired of the rain in the UK? Plan a weekend getaway to Germany, and you'll be in for a real treat! You will be amazed by Germany's stunning natural beauty, rich history, and lively culture. From the vibrant street art of Berlin to the historic landmarks of Munich, Germany offers an array of fun experiences for tourists. However, you will also realise visiting Germany can be expensive. And if you love shopping, the expense will add up as well. The good news is: you can take advantage of VAT refunds to help offset your expenses!

This guide will provide an overview of tax-free shopping in Germany so you can save money while enjoying this beautiful country's sights and sounds.

How much is VAT in Germany?

The VAT system in Germany is simple, and there are only two common rates. One is called the "standard rate", and it's 19%. This rate applies to most things you buy or services you use. The other rate is called the "reduced rate", and it's 7%. It applies to food, books, cultural services, hotel stays, and medical or dental care.

You can also refer to the table below to quickly check the rates and the applicable goods.¹

How much VAT is refunded in Germany?

The standard VAT rate is 19% of the purchase price! However, it's important to keep in mind that administrative fees or minimum purchase requirements may apply. The actual amount of the VAT refund in Germany may vary based on individual circumstances and the specific refund process used. You will usually receive only a portion of your VAT back.

Who is eligible for tax free shopping in Germany?

When you’ve visited Germany, you’ll be able to get a VAT refund on items bought if:²

• You are a resident of a non-EU country, including the UK(England, Scotland and Wales), and you have your valid identity documents from a non-EU country; or
• You’re an EU resident but are leaving the EU for 12 months or more;
• You do not have a residence permit that entitles you to reside in Germany for longer than 3 months;
• You export the goods yourself in your personal baggage within 3 months of purchase; and
• The total value of the delivery, including VAT, must be more than 50 euros.

There are additional restrictions to consider. Some goods, due to their nature, are not eligible for VAT refunds. They include:

• Spare parts for equipping private vehicles of any kind, such as bumpers, exterior mirrors, tow ropes, or first aid kits,
• Items for the supply or maintenance of a vehicle, such as fuel, oil, or care products, and
• Services that you receive in Germany, including bus or train tickets, restaurant or hotel bills, prepaid mobile services, and other products.

How to get VAT refund in Germany?

When leaving the European Union for the UK, you need to prepare the following items to get your VAT tax refund after your Germany trip:

• The export papers (Ausfuhrbescheinigung) or the Tax-Free Shopping Check,
• The original receipt of the store, and
• The purchased items (unused/unworn in their original packaging and with a price tag).

After you get that checklist ready, you can follow these simple steps to get your VAT refunded:³

Step 1: Complete the export papers or the Tax Free Shopping Check

Remember to ask for a so-called "Ausfuhrbescheinigung" (export papers) or a Tax-Free Shopping Check from the retailer when you shop from a store. You might also be asked to show your passport to check your eligibility. Fill in the form and sign it.

If your purchased products are in your airline's checked luggage, you must inform the check-in staff about the products and VAT refunds. They will help to tag your bags separately and return them to you for presentation at the customs office. This is very important because, without the tag, you WILL NOT get a VAT refund.

And if you intend to leave the products in carry-on luggage, you can go through the security check with the standard procedure.⁴

Step 2: Get a customs stamp

You must show items in your carry-on luggage to the customs office for examination. After the goods have been examined, make sure that the export papers are stamped.

This is an important step. Without confirmation from the customs office, you will not be refunded VAT!

Step 3: Process your refund at a VAT refund stations

After getting your paperwork stamped, you should go to the VAT refund stations. In Germany, the following providers offer a tax refund service:

Step 4: Obtain a VAT refund

After having returned to the UK the stamped invoice should be sent back to the retailer in Germany where the item was purchased. Once that retailer receives proof that the goods have been properly exported, the retailer will reimburse the VAT refund after deducting the fee.

For the Tax Free Shopping Check you may be able to obtain a cash refund if they have an office at the airport. Otherwise the check should be sent to the address on the back of the Tax Free Shopping Check where you will find detailed instructions for the refund.

This article explained the few steps to getting your VAT refund on the way back from Germany to the UK. The process is simple: get your tax exemption form, stamp it, and obtain your refund at or after the counter. Please note that tax regulations and procedures may change over time. Always verify the information with official sources or consult a tax professional for the most accurate and up-to-date guidance.

It is also worth noting that tourists can receive a VAT refund with the card. However, if the denominated currency of the card (e.g., GBP) is different from the local currency (e.g., EUR), it may be converted automatically. To avoid extra costs on currency conversion, tourists can receive the refund with a Wise debit card, which allows for holding 40+ currencies, including EUR.

So, next time you plan a trip to Germany, remember to keep this article as a guideline to get your VAT refunds and make your shopping spree even more rewarding!

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Sources used for this article:

Sources last checked on 21-Mar-2024.