What is the VAT / Tax Refund Calculator?
Many countries let visiting tourists reclaim the Value Added Tax (VAT) or sales tax paid on goods they take home. This calculator estimates how much of that tax you can expect back. Because displayed shop prices usually already include VAT, the tool extracts the embedded tax from your gross purchase price and then subtracts the percentage admin fee charged by refund operators such as Global Blue or Planet. VAT rates and refund rules vary by country, so use this as a planning estimate rather than a guaranteed figure.
How to use it
Enter the total purchase price exactly as shown on the receipt (this is the VAT-inclusive amount), the country's VAT rate (for example 20% in France, 19% in Germany, 7% in some categories), and the admin or processing fee charged by the refund company (often 10–55% of the VAT). The calculator returns your estimated refund, the VAT contained in the price, the fee deducted, and the net price excluding tax.
The formula explained
Since the price already includes VAT, the tax portion is \(\text{Price} \times \text{VAT} / (100 + \text{VAT})\) — not simply Price × VAT%. Multiplying a €120 price (with 20% VAT) by 20% wrongly gives €24; the correct embedded VAT is \(120 \times 20/120 = 20\) €. The refund is then reduced by the admin fee:
$$\text{Refund} = \text{VAT}_{\text{paid}} \times \left(1 - \frac{\text{Fee\%}}{100}\right)$$
Worked example
You buy goods for €1,000 in a country with 20% VAT and the refund operator keeps a 30% admin fee. Embedded VAT = \(1{,}000 \times 20/120 = 166.67\) €. Refund = \(166.67 \times (1 - 0.30) =\) €116.67. The operator keeps €50.00, and the net price before tax is €833.33.
FAQ
Why isn't the refund the full VAT rate of the price? Because the price already contains VAT, you back it out with \(\text{VAT}/(100+\text{VAT})\), and refund operators deduct a service fee.
What admin fee should I use? It varies widely; check the refund slip. Many high-street operators effectively keep 30–55% on small purchases.
Is there a minimum spend? Most countries set a minimum purchase amount per store and require export within a time limit — check local rules.
