Value-Added Tax

Many European countries are expensive in part because of value-added tax, which is like a super-hefty sales tax and averages about 17 percent. If you are buying something expensive and leaving the country afterward, you can often get some of this tax refunded (many countries require a sizeable minimum purchase before you qualify for the refund). But, if you do make a major purchase, this can save big bucks, and can also make something that you couldn’t afford without the refund fit into your budget.

The procedures for doing this are usually complicated, and should be explained by a tourist office or at a more upscale store. Look for the blue-and-red or blue-and-silver signs that say “Tax Free for Tourists” - these places can give you a check for the amount of tax you have paid on the spot, and this can usually be cashed at the airport or sent in after you get home. If you wait until you get home, don’t count on getting your refund right away.