How to request a VAT Refund in Germany as a Foreigner
If you are a non-EU resident visiting Germany, you have the opportunity to shop “tax-free” under certain, but minimal conditions. Tax-free, meaning you will be able to get the full 19% VAT/Sales tax back father leaving the EU with the product(s).
Alternatively, you can receive cash at the airport if you choose for a tax-back service provider that charges a processing fee.
You can easily do it yourself. Anyway, here is how it’s done:
How to request a German Sales Tax refund:
1. Eligibility Criteria:
- You must be a resident of a non-EU country and able to prove your residency with valid identity documents such as a passport, identity card, or any other document authorizing you to cross the border.
- You should not have a residence permit that allows you to stay in Germany for more than 3 months.
- The total value of your purchase, including VAT, must exceed 50 euros.
- You need to export the goods yourself within 3 months of purchase.
- Certain items, such as services provided in Germany, goods for equipping vehicles, and vehicle supply or maintenance items, are not eligible for tax-free shopping.
2. Make the Purchase:
- When shopping, pay the full purchase price, including the turnover tax (VAT).
- Ensure that the retailer provides you with a proper invoice that includes the name and address of the supplier, the commercial name(s) and quantity/quantities of the purchased goods.
3. Obtain Proof of Non-Commercial Export: Option 1: Ausfuhr- und Abnehmerbescheinigung form
- Download and print the “Ausfuhr- und Abnehmerbescheinigung für Umsatzsteuerzwecke bei Ausfuhren im nicht kommerziellen Reiseverkehr” form in advance.
- When making a purchase, ask the seller to complete Part A of the form with the purchase transaction details.
- Take the form to the customs office of exit on the EU’s external border (airports and seaports) for validation. The customs office will compare your identity details with your personal documents (passport, identity card, etc.).
Option 2: Alternative documentary evidence
- Instead of the form, you can provide documentary evidence such as an invoice with a valid stamp imprint from the customs office of exit.
4. Customs Confirmation:
- If you have purchased items that are in your hold baggage, get them confirmed by the customs office at your first EU airport of departure before checking them in (!!!).
- For items in your hand baggage, the customs at your last EU airport of departure will confirm the export.
5. Departure and Reimbursement:
- When you leave the EU, your goods must be in your personal luggage.
- At the customs office of exit, the goods being exported will be confirmed, and you’ll receive an export certificate.
VAT Refund Calculator for Germany
| Refund | Percentage | VAT Rate |
|---|---|---|
| € 0.00 | 19% | 19% |
Understanding Tax Refund Calculations
Understanding how tax refunds are calculated is crucial. While it might seem that a 20% VAT refund would result in a 20% reimbursement from your purchase, it’s not quite that simple. The calculation follows this pattern: Starting with 100 Euro + 20% equals 120 Euro. However, 120 Euro – 20% doesn’t equal 120 Euro. Instead, it’s 120 Euro – 16.66% which equals 100 Euro.
Keep in mind that the tax refund amount will be further reduced after accounting for administration fees.
6. Obtain Your Refund:
- Depending on the vendor’s procedure, they might reimburse you the VAT amount directly upon presenting the export certificate.
- Alternatively, the vendor might collaborate with a service organization at the border crossing point or airport. This organization will return the VAT amount (minus a processing fee) after receiving the export documents from you.
7. Potential Exceptions:
- In exceptional cases, a German diplomatic mission abroad can complete the export certificate in place of the German customs office of exit.
- Repayment methods may vary, so check with the vendor for their specific process.
8. Important Note:
- VAT refunds are subject to change and depend on evolving regulations and systems. Ensure that you’re updated with the latest information and procedures before making purchases.
Remember that tax-free shopping in Germany requires careful adherence to these guidelines, and keeping documentation and receipts is essential. Always verify the details with the retailer and customs authorities to ensure a smooth tax refund process.
Tips & Advice:
- Before full check-in: You should first take your bulk luggage to the airline’s check-in desk to have a baggage tag attached to it by an airline employee. At the same time, you should explain to the employee that your hold luggage contains goods for which you want a customs exportation certificate to have the sales tax reimbursed. This will result in your tagged luggage being handed back to you, so you can take it to the airport’s customs office of exit in order to have it cleared for export there.
- Direct Payment: Neither the German fiscal authorities nor the German Customs can make direct repayments to a purchaser.(This is done by the vendor or, if you choose, an intermediary)
- Receive Export Certificate: Upon verification, you’ll receive an export certificate. Ensure it’s properly stamped and validated by customs.
- The export of items in your hand baggage, though, will be confirmed by the customs at your last EU airport of departure.
Exceptions to Tax-Free shopping in Germany:
- Services that have been rendered in Germany
(it means that the price you pay for bus or train tickets, and restaurant or hotel bills, for example, includes German VAT), - Goods for equipping private vehicles of any kind, such as bumpers, exterior mirrors, tow ropes, or first aid kits, and
- Goods for the supply or maintenance of a vehicle, such as fuel, oil, or care products.