VAT refund versus sticker price: a shopping worksheet
A tax rate and a refund percentage are not interchangeable. Work with the amount you expect to receive.
By Wandering Wishlist editorial · · How we research
Extract tax from an inclusive price correctly
In a hypothetical market with 20% tax included, a 1,200-unit price is 1,000 before tax plus 200 tax. The tax component is 1,200 × 20 ÷ 120, not 1,200 × 20%. This is arithmetic, not a statement of any country’s current rate.
Use a net refund quote
The tax component is not a promise that the full amount will be refunded. Eligibility, retailer participation, provider charges and the required export process can affect the result. Ask for the net amount and the process before purchasing.
Keep different charges separate
A refund abroad does not settle obligations when you return home. Keep refund, currency conversion, card fees and home-country charges as separate lines so you can change each assumption.
Verify the rules for your trip
Use the official government information for the country of purchase and your return destination. This worksheet does not determine eligibility, customs classification or a tax liability. The EU’s traveler guidance is a starting point for EU purchases.
Official starting points
Keep exploring
Buying a designer bag abroad: compare the full cost →