Berlin

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Taxes and VAT Refunds

Information about the Value-Added Tax (VAT) system and how visitors can claim refunds when shopping.

Sections

1. Overview of VAT in Germany

  • VAT (Value Added Tax) in Germany is known as Mehrwertsteuer (MwSt).
  • The standard VAT rate is 19%, applied to most goods and services.
  • A reduced VAT rate of 7% applies to specific items, such as books, food (excluding restaurant meals), and public transportation tickets.

2. VAT Refunds for Tourists

Tourists from non-EU countries are eligible to claim a VAT refund on eligible purchases made in Germany, including Berlin. This allows you to reclaim the VAT paid on goods purchased during your visit.

Eligibility Criteria

  • You must reside outside the European Union (EU).
  • The goods must be for personal use and exported outside the EU within three months of purchase.
  • The total value of purchases (including VAT) from a single store on the same day must exceed โ‚ฌ50.01.

3. Eligible Purchases

  • Eligible items: Clothing, electronics, jewelry, souvenirs, and other tangible goods.
  • Non-eligible items: Services (e.g., hotel stays, meals at restaurants), perishable goods, and items consumed within the EU.

4. Required Documentation

To claim a VAT refund, you will need the following:

  1. Original purchase receipts (with VAT clearly listed).
  2. A Tax-Free Form (also called a VAT refund form) issued by the retailer at the time of purchase.
  3. Your passport (or a copy) to prove non-EU residency.
  4. The goods you purchased, as they may need to be inspected at customs.

5. Step-by-Step Procedure for VAT Refunds

Hereโ€™s how to claim your VAT refund in Berlin:

Step 1: Shop at Participating Retailers

  • Look for stores displaying a "Tax-Free Shopping" sign or ask the retailer if they participate in the VAT refund scheme.
  • At the time of purchase, inform the retailer that you are a non-EU resident and request a Tax-Free Form.
  • Provide your passport or proof of non-EU residency to complete the form.

Step 2: Get Customs Validation

  • Before leaving the EU, you must have your Tax-Free Form validated by customs officials at the airport, train station, or border crossing.
  • At Berlin Brandenburg Airport (BER), head to the customs desk before checking in your luggage.
  • Present the following:
    • Your Tax-Free Form.
    • The original receipts.
    • The goods you purchased (unused and in their original packaging).
    • Your passport.
  • Customs will stamp your form if everything is in order.

Step 3: Submit Your Refund Claim

  • After customs validation, you can claim your refund through:
    • Refund counters at the airport (e.g., Global Blue, Planet Tax Free).
    • Mailing the stamped form to the refund company (if no counter is available).
  • Refunds can be issued in cash (in euros) or credited to your credit card. Some refund companies may also offer refunds in your home currency, but this may involve additional fees.

6. Costs and Fees

  • Refund companies (e.g., Global Blue, Planet Tax Free) charge a processing fee, which is deducted from your refund. This fee typically ranges from 10% to 15% of the VAT amount.
  • For example, if you paid โ‚ฌ100 in VAT, you might receive a refund of โ‚ฌ85โ€“โ‚ฌ90 after fees.

7. Currency Considerations

  • Refunds are usually issued in euros, but some companies offer refunds in your home currency. Be aware of potential exchange rate fees or unfavorable conversion rates.
  • If you opt for a refund to your credit card, ensure your card supports international transactions.

8. Where to Claim VAT Refunds in Berlin

  • Berlin Brandenburg Airport (BER): The main location for customs validation and refund claims.
    • Customs desks are located in the departure area before security.
    • Refund counters (e.g., Global Blue, Planet Tax Free) are available after customs validation.
  • City Refund Offices: Some refund companies have offices in central Berlin where you can process your claim before heading to the airport. Check the companyโ€™s website for locations.

9. Local Considerations

  • Language: Most customs officials and refund counter staff speak English, but itโ€™s helpful to know basic German phrases.
  • Timing: Arrive at the airport early to allow time for customs validation and refund processing, especially during peak travel seasons.
  • Packaging: Keep goods in their original packaging and avoid using them before export, as customs may reject your claim if items appear used.
  • Receipts: Keep all receipts organized and ensure they match the Tax-Free Forms.

10. Additional Tips

  • Combine purchases: To meet the โ‚ฌ50.01 minimum, consider combining purchases from the same store on the same day.
  • Digital forms: Some retailers and refund companies offer digital Tax-Free Forms, which can simplify the process.
  • Check refund policies: Each refund company has its own policies and fees, so review them before submitting your claim.

By following this guide, you can efficiently navigate the VAT refund process in Berlin and maximize your savings on eligible purchases. Enjoy your trip!