Goods sold in European Union countries have Value-Added Tax (VAT) included in the posted price. VAT varies from country to country, but in most E.U. member states, non-residents are entitled to a refund of the VAT paid on goods if they are exported and not consumed while in the E.U.
Because travelers have to demonstrate the goods will be exported, there are a few hoops to jump through to benefit from the tax refund. The exact process varies by country, but here are a few tips to smooth the process.
Source: fodors.com
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