Tax-Free Shopping: A Guide for Travelers

Tax-Free Shopping: A Guide for Travelers

30/03/2025

Tax-FreeTax-Free Shopping: A Guide for Travelers

Tax-free – everyone has heard the term, but not everyone knows how to take advantage of it. At Parlaxy, we encourage savvy travelers (and shoppers!) to make the most of every opportunity to save money. Here's a quick but useful guide to tax-free shopping.

Tax-free shopping allows international tourists to buy goods without paying the local value-added tax (VAT). Travelers can claim refunds at airports, kiosks, or online after validating their purchases.

Not every purchase in the country you're visiting is eligible for a tax refund: purchases usually need to cross a minimum spend threshold and meet other conditions like being for personal use. So if you're traveling to Italy, definitely buy your dream handbag and deduct the VAT, but if you're buying five of them – for all your female relatives – you might have difficulty justifying the amount to the officer who needs to approve the refund.

Tax free shopping eligibilityTax free shopping eligibility

Tourists often dismiss the opportunity to get VAT back – they don't want to spend time in different lines or simply get overwhelmed by this multi-step task. In reality, the steps are simple:

1. Purchase and express your intention to get a VAT refund at the counter – salespeople in every country know if there's an additional receipt they should issue. This receipt, if necessary, is easily printed right there on the spot. To be sure if you need one, ask the salesperson!

2. Save the receipts! All of them – those you initially got, and those that were printed for you upon request.

3.1 Find the closest kiosk that processes tax-free forms.

Or save the receipts for the airport!

3.2. Find your clerk at the airport – if you bought many gadgets or a whole suitcase of clothing, prepare to answer questions about personal use.

4. The clerk either gives you cash right away or directs you to the window that handles money.

4 steps to VAT refund4 steps to VAT refund

That's it! The refund will be processed in local currency – perfect for duty-free shopping.

Now that we've covered what you can buy and what to do next, let's clarify the methods:

  • Airport counters – Traditional in-person refunds (most common).
  • Self-Service kiosks – Scan documents for instant refunds (not available everywhere).
  • Points of sale integration – Automated refunds at checkout (fastest, but a rare store offers this).
  • Mobile apps– Submit refunds digitally (convenient in theory, but banking systems vary by country).

Don't be intimidated by this truly simple process. As a tourist, you won't benefit from services funded by that country's VAT. So why pay extra when you can get some money back and invest it in your next trip?

You spent lavishly during your trip to be eligible only for a $17 refundYou spent lavishly during your trip to be eligible only for a $17 refund

Tax-Free and Parlaxy Guidelines

Here are some scenarios when involved parties might discuss VAT refunds:

-The traveler means to buy the item in the country they're visiting as a tourist.

-The traveler intends to buy the item in another country on their way home.

The key factor is: the traveler isn't buying the item in their home country!

POV: You just told your buddy you “threw away all those useless receipts”POV: You just told your buddy you “threw away all those useless receipts”

Who Keeps the Refund?

The buyer or the traveler? Well, kids, you're all grown-ups! It's a joke, but not entirely. We expect our users to communicate and discuss this before agreeing to any deals. It's unfair for either side to demand that money for themselves: after all, it's the buyer's money, but hey, it's the traveler's time! Be respectful and kind to each other, and if you know there will be a tax refund opportunity, negotiate the details beforehand.

Our community consists of people who help each other at every step of the deal. Travelers agreeing to bring medicine for free, buyers making an effort to increase rewards, everyone adjusting their schedules and being patient – that's the Parlaxy way. Whether you're the buyer or the traveler, just make sure you’re not asking for too much – and maybe even brighten someone's day with a nice gesture!