Roberta Aguirre
Tax refund policies vary from country to country, and even within countries, they can vary by state or province. In the United States, sales tax is imposed at the point of transfer of title or possession, and there is generally no refund of the sales tax paid. However, Texas, Louisiana, and Washington have different policies. Texas allows international visitors to acquire a refund of sales tax under certain conditions, and Washington has provided guidance on the requirements for a sale to qualify as an export sale exempt from retail sales tax when a customs broker is involved. In Europe, non-residents can get a refund on most of the tax they pay on merchandise, but not on hotels and meals.
| Characteristics | Values |
|---|---|
| Tourist tax refund in the US | Only in Texas, Washington State, and Louisiana. |
| Tourist tax refund in the EU | Yes, but with minimum spending requirements. |
| VAT refund at the airport | Yes, but with varying rules and eligibility criteria. |
| VAT refund process | Present eligible receipts and goods for inspection, receive a refund in cash, check, or credit to your card. |
| VAT refund documents | Completed VAT refund form, passport, and original sales receipt. |
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Sales tax refunds in the United States
However, there are some exceptions to this rule. In Louisiana, Texas, and Washington, sales tax refunds may be available for international visitors under certain conditions. For example, in Texas, international visitors can acquire a refund of sales tax on their purchases through private companies, but they must shop at a participating store and process the refund at one of their specified locations. In Washington state, sales tax does not apply to sales of tangible personal property, digital goods, and digital codes to non-residents when specific criteria are met.
The city of New Orleans also offers a tax-free shopping program for foreign visitors travelling in the United States for 90 days or less with a foreign passport, a US visitor's visa, and an international transportation ticket. These visitors can apply for a refund of sales tax on qualifying items purchased from retailers participating in the program.
It's important to note that sales tax refunds in the US are paid by the respective state or local government where the purchases were made, and there is no standard sales tax percentage set across states. Therefore, it is recommended to check the sales tax and refund policies of the specific state before shopping to ensure eligibility for a tax refund.
To claim a tax refund, both US citizens and non-citizens can do so at major international airport terminals that usually have a tax refund desk. However, it is advised to allow plenty of extra time at the airport to deal with the refund process, as it may involve a fee and the refund will be in the currency of the country of departure.
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Sales tax refunds in the European Union
The precise details of getting your money back will depend on how a particular shop organizes its refund process. Most tourist-oriented stores offer VAT refunds, and you will often see a sign in the window or on the checkout counter. For any significant purchase, even at a boutique shop, it's always worth asking about a VAT refund.
To kick off the refund procedure, you will need to show some form of identification that proves that you do not live in the EU, such as your passport. Ask the shop owner to assist you with filling out the relevant tax-free form, and double-check the information to make sure it's correct. Tourism-savvy shop owners often offer an on-the-spot refund as an added service, but you will likely pay a small fee for this.
You should take your refund forms, receipts, and the items you bought with you to a VAT office at the airport. Make sure to allow enough time before your flight departs to deal with the VAT refund process. Note that refund services typically extract a 4% fee, but you're paying for the convenience of receiving your money in cash immediately or credited to your card. The refund will be in the currency of the country from which you depart; if you want to be reimbursed in a different currency, you'll be subject to their unfavorable exchange rates.
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VAT refunds at the airport
VAT refunds are available for tourists in many countries, including several US states and European countries. The process for claiming a VAT refund may vary depending on the country and the specific retailer, but there are some general steps that can be followed. Here is some information on VAT refunds at the airport:
US VAT Refunds
In the United States, sales tax is generally imposed at the point of purchase, and there is typically no refund of sales tax for goods purchased and taken possession of within the country. However, there are some exceptions, such as in Texas, Washington State, and Louisiana, where VAT refunds are available for international visitors or non-residents under certain conditions. For example, in Texas, the refund process is handled by private companies, and the purchaser must shop at a participating store and process the refund at specified locations. In Washington State, sales tax does not apply to sales of tangible personal property, digital goods, and digital codes to non-residents of the state.
US citizens and non-US citizens can claim tax refunds at major international airport terminals, usually at a tax refund desk. It is recommended to check with the specific airport for details on the refund process and locations.
European VAT Refunds
In Europe, tourists can claim VAT refunds on merchandise purchased within the European Union (EU). The standard EU VAT rate ranges from 8% to 27% per country. To claim a refund, individuals should bring their passport or a photo of it when shopping, obtain the necessary documents from the retailer, and file the paperwork at their final port of departure from the EU, usually at the airport. It is important to allow extra time at the airport for the VAT refund process, as it may involve going to a customs office and a separate VAT refund service or a single VAT desk. Some retailers may offer to handle the refund process, reimbursing the credit card directly or through a third-party agency.
It is worth noting that VAT refunds may not be available for all purchases, such as hotels and meals, and there may be minimum purchase values or other criteria to qualify for a refund. Additionally, the refund amount may be subject to processing fees, and the reimbursement currency will typically be that of the country of departure.
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Tax-free shopping in New Orleans
New Orleans, Louisiana, offers international visitors the opportunity to receive cash refunds for sales taxes paid on tangible items purchased at participating tax-free stores. This program is called the Louisiana Tax Free Shopping (LTFS) program and includes more than 900 stores in the state, including some of the biggest names in fashion like Armani Exchange, BCBG, Guess, and Nike. It's not limited to clothing either; you can save on everything from electronics to jewelry to wine.
To receive a refund, individuals must be travelling in the United States for 90 days or less with a foreign passport and/or a current US visitor's visa and an international transportation ticket. When checking out, shoppers should present their passport or identification to the clerk, who will provide a tax refund voucher. This voucher can then be redeemed at one of the Louisiana Tax-Free Shopping Refund Centers, including Louis Armstrong International Airport, along with the passport and international ticket. Refunds under $500 will be made in cash, while larger amounts will be mailed as a check.
It is important to note that the LTFS program is set to end on July 1, 2024, with all refund centers closing to the public by June 30, 2024. After the closure of these centers, refund requests must be mailed by June 30, 2025.
Popular Tax-Free Shopping Zones in New Orleans include the French Market, Jackson Brewery, the Lakeside Shopping Center, The Outlet Collection at Riverwalk, the Shops at Canal Place, and the French Quarter, known for its eclectic art finds and one-of-a-kind antiques.
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Sales tax in Washington State
Sales tax in the United States is imposed at the point of transfer of title or possession. Generally, there is no refund of the sales tax paid if the goods will be removed from the United States. However, Washington State has provided guidance on the requirements for a sale to qualify as an exempt export sale. A sale must meet one of the following requirements:
- The goods must be delivered to the buyer in another country.
- The goods must be delivered to a carrier who transfers them to another country.
- The goods must be delivered to the buyer at shipside or aboard the buyer’s vessel or other vehicle.
Sales taxes apply to most retail sales of "tangible personal property" within Washington State. The rate of sales tax in Washington in 2025 ranges from 6.5% to 10.4%, depending on location. There is a limited sales tax exemption for residents of certain other states or Canadian provinces for goods purchased to be used out-of-state, if those states or provinces have no sales tax or if the sales tax is less than 3%.
If a taxable purchase is made out-of-state by a Washington resident or entity for use in Washington, and the sales tax paid is less than the rate levied within the local jurisdiction, a "use tax" must be calculated and paid to make up the difference. For example, if you buy furniture in Oregon, where there is no sales tax, and bring it back to Washington, you owe a use tax of 8.2% on the purchase price.
In the United States, sales tax refunds are not common, and the process varies by state. However, Texas and Louisiana are exceptions to this rule, offering tax refunds to international visitors who meet certain requirements. In Texas, the refund process takes place through private companies, and the purchased merchandise must be new and unused. In Louisiana, the city of New Orleans offers a tax-free shopping program for foreign visitors.
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Frequently asked questions
The US does not offer sales tax refunds at the airport like in the EU and UK. However, Texas, Louisiana, and Washington have exceptions for international visitors.
Yes, you can get back most of the tax you pay on merchandise in the EU. You will need your passport, necessary documents from the retailer, and file your paperwork at the airport, port, or border when you leave.
Before checking in for your departure flight, go to the customs desk or designated tax refund point within the airport. Present your purchased items, receipts, and passport. Customs authorities may inspect your items to verify that they are indeed leaving the country with you. Present your completed VAT refund form, along with your receipts and purchased goods, to customs. They will inspect and stamp the form, confirming your eligibility for a refund. Head to the VAT refund desk and submit your stamped VAT refund form. Choose your refund method, which can be in cash, by check, or credited back to your credit card.
