If you’re a non-European Union (EU) resident shopping in Portugal and have noticed VAT added to your receipts, you have the opportunity to claim a VAT refund. Here’s a step-by-step guide on how to claim your VAT refund, by yourself or using a service provider. Portugal has a standard VAT rate of 23%.
How to Claim a VAT Refund in Portugal as a Foreigner
1. Eligibility and Purchase Criteria:
- Non-EU residents are eligible for a VAT refund on items they take home with them.
- The purchase must be made from participating retailers in the tax-free scheme.
- The minimum purchase amount for a VAT refund is €50 or more (without tax) per receipt.
- Hotel bills, restaurant meals, and consumable items are not eligible for a VAT refund.
2. Identifying Eligible Retailers:
- Look for “VAT Refund” or “Tax Free Shopping” signs in shop windows.
- Ask retailers if they participate in the VAT refund scheme, especially in clothing, tech stores, and jewelry shops.
3. Purchasing Process:
- If your purchase is eligible for a VAT refund, inform the retailer.
- Provide your passport for verification.
- The retailer will provide a normal receipt and a special tax-free form with a registration code.
- Keep both the receipt and the tax-free form; you’ll need them for the refund process.
4. Claiming VAT Refund at the Airport:
- On the day of your EU departure, arrive at the airport well in advance of your flight.
- Locate an e-Taxfree Portugal kiosk.
5. Checked Luggage Process:
- Inform airport check-in staff that you have an item to declare.
- Proceed to an e-Taxfree kiosk with your passport, boarding pass, the item in your checked luggage, and the tax-free form.
- Follow the instructions:
- Code Green: Approved VAT refund; proceed to check your luggage.
- Code Red: Go to Customs for verification.
6. Hand Luggage Process:
- After security control, go to an e-Taxfree kiosk with your passport, boarding pass, the item, and the tax-free form.
- Follow the instructions:
- Code Green: Approved VAT refund; proceed to your gate.
- Code Red: Go to Customs for verification.
7. Receiving the VAT Refund:
- Different VAT refund operators may handle refunds differently.
- After security control, present the validated tax-free form at the operator desk for instant refund (cash or credit).
- Alternatively, drop the validated form into available drop boxes and receive a refund via credit card or cheque sent to your home address (administrative fee may apply).
Remember to consider peak times and allow sufficient time for the VAT refund process at the airport. This can be a valuable way to get some money back on your purchases and enhance your overall travel experience in Portugal.
VAT Refund Calculator for Portugal
| Refund | Percentage | VAT Rate |
|---|---|---|
| € 0.00 | 23% | 23% |
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.
Frequently Asked Questions
Is a VAT refund available for all my purchases?
No, VAT refund is applicable only to purchases that surpass a total of €50 per invoice (excluding tax), and they must not be intended for commercial use or resale.
As you exit the European Union, it’s crucial to demonstrate that you’re carrying the purchased items in your personal baggage. Keep in mind that items already consumed during your stay (like hotel stays or restaurant meals) or those you’ve begun using do not qualify for a refund.
How can I get the VAT refund amount?
You have two options to receive the VAT amount that’s being refunded for your purchases:
- Instant Reimbursement – At the Counter: The refund operator will review the validated form and proceed to make the payment right there. You can receive the refund in cash, on your credit card, or through an international cheque.
- Delayed Reimbursement – Via Submission Boxes: Alternatively, the reimbursement operator will gather the form from the designated submission box. After verifying its validation, the payment will be processed. This reimbursement will be made via credit card or a cheque, which will be sent to your home address.
Do I need to complete forms during the purchase?
No, there’s no need to fill out forms during your purchase. However, ensure that the shop is part of the tax refund program.
The sales assistant will request your passport or another officially recognized document that verifies your non-European Union residency. They might also ask for some personal information.
Once the transaction is finalized, the sales assistant will provide you with proof of purchase containing the relevant registration code. At this point, the refund method will be determined, especially if a guarantee has been offered.
How can I verify the forms using electronic kiosks?
Simply hold your passport or identity document in front of the kiosk’s infra-red scanner, and then scan your boarding pass.
The kiosk will display which tax-free forms can be electronically validated. If you have any documents that can’t be validated electronically, the kiosk will direct you to the help desk.
Follow the instructions provided on the kiosk screen. If you see a “Code Green,” your validation is successful, and you can proceed to one of the tax-free operator desks (as indicated on your forms) to claim your refund. However, if you encounter a “Code Red,” it signifies that exemption conditions require verification. In this case, get in touch with the Customs desk.
Should you need it, the Customs desk personnel will provide you with an exemption certification.
VAT Refund Services at Lisbon Airport
Global Blue:
- Website: Global Blue
- Discover Global Blue kiosks in Terminal 1’s restricted departures zone, located after the security check.
- Look for Global Blue self-refund kiosks after the security check in Terminal 1, near customs, and also in Terminal 2’s restricted area after the security check.
- Convenient post office collection boxes are available in both Terminal 1 and Terminal 2’s restricted departures areas.
Planet Tax Free:
- Website: Planet Tax Free
- Visit the counter in the restricted departures area, immediately following the security control.
- Utilize the drop boxes placed in front of the counter and within the restricted departures area of Terminal 1 for easy form collection.
Innova Tax Free:
- Website: Innova Tax Free
- Represented by Unicâmbio, you’ll find 2 counters in the restricted departures area after passing the security control – one at boarding gate 15 and another at the central plaza.
Travel Tax Free:
- Website: Travel Tax Free
- Also represented by Unicâmbio, discover 2 counters in the departures restricted area after the security checkpoint – one at Gate 15 and another at the central plaza.
- Convenient drop boxes are available for form collection within the restricted area.
VAT Refund Services at Faro Airport
- Global Blue:
- Website: Global Blue
- You can find Global Blue self-service kiosks within the restricted area of departures, located beside customs, after passing through security control.
- Convenient drop boxes are available for form collection within the restricted departure area.
- Planet Tax Free:
- Website: Planet Tax Free
- Access self-service kiosks within the restricted area of departures, positioned near customs, after clearing security control.
- Represented by Unicâmbio in the public arrivals area.
- Look out for drop boxes within the restricted departure zone for hassle-free form submission.