Frankfurt

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Tax Refunds

Information on how visitors from non-EU countries can claim tax refunds for purchases made in Frankfurt.

Sections

1. Understanding VAT in Germany

  • In Germany, most goods and services are subject to Value Added Tax (VAT), which is included in the price you pay. The standard VAT rate is 19%, while a reduced rate of 7% applies to certain items like books, food, and public transportation.
  • As a non-EU resident, you are eligible to claim a refund on the VAT paid for goods purchased in Germany, provided you meet certain conditions.

2. Eligibility Criteria for Tax Refunds

To qualify for a VAT refund in Frankfurt (or anywhere in Germany), you must meet the following conditions:

  1. Residency: You must reside outside the European Union (EU). Proof of residency (e.g., passport) will be required.
  2. Minimum Purchase Amount: The total value of goods purchased from a single retailer must exceed โ‚ฌ50.01 (including VAT).
  3. Goods for Export: The goods must be exported out of the EU within three months of purchase.
  4. Personal Use: The goods must be for personal use and not for resale.
  5. Proper Documentation: You must obtain a Tax-Free Form (Tax Refund Cheque) from the retailer at the time of purchase.

3. Refund Procedure

Hereโ€™s a step-by-step guide to claiming your VAT refund in Frankfurt:

Step 1: Shop at Tax-Free 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 (also called a VAT Refund Form or Cheque).
  • Provide your passport or other proof of non-EU residency.
  • The retailer will fill out the form and attach your purchase receipt.

Step 2: Validate Your Tax-Free Form at Customs

  • When leaving the EU (e.g., at Frankfurt Airport), you must have your Tax-Free Form stamped by German Customs to prove that the goods are being exported.
  • Ensure the goods are unused and easily accessible for inspection by customs officers. Pack them in your carry-on luggage if possible.
  • Go to the Customs Office (Zoll) at the airport before checking in your luggage. Present the following:
    • Your passport
    • The Tax-Free Form(s)
    • Purchase receipts
    • The goods you purchased
    • Your boarding pass or travel itinerary

Step 3: Submit Your Tax-Free Form

  • After customs validation, you can claim your refund through one of the following methods:
    1. Immediate Cash Refund: Visit the VAT refund service counters (e.g., Global Blue, Planet Tax Free) at Frankfurt Airport to receive your refund in cash (in euros or your preferred currency).
    2. Credit Card Refund: Drop the validated Tax-Free Form into the designated refund service mailbox at the airport. The refund will be processed and credited to your card within a few weeks.
    3. Bank Transfer: Some refund services allow you to receive the refund via bank transfer, though this may take longer.

4. Associated Costs

  • VAT refund service providers (e.g., Global Blue, Planet Tax Free) charge a processing fee, which is deducted from your refund amount. This fee typically ranges from 10% to 15% of the VAT amount.
  • If you opt for a cash refund at the airport, the fee may be slightly higher than for credit card or bank transfer refunds.

5. Specific Locations in Frankfurt for Tax Refunds

Frankfurt Airport (FRA)

Frankfurt Airport is the primary location for processing VAT refunds. Hereโ€™s what you need to know:

  • Customs Validation Counters:
    • Located in both Terminal 1 and Terminal 2, near the check-in and security areas.
    • Look for signs indicating "Zoll" (Customs).
    • Operating hours: Typically aligned with flight schedules, but itโ€™s best to arrive early to avoid delays.
  • VAT Refund Service Counters:
    • Providers like Global Blue and Planet Tax Free have counters in both terminals.
    • Locations:
      • Terminal 1: Near Departure Hall B and C.
      • Terminal 2: Near Departure Hall D.
    • Operating hours: Usually open from early morning until late evening.

Downtown Frankfurt

  • Some VAT refund service providers have offices in central Frankfurt where you can process your refund before heading to the airport. However, you will still need to get your Tax-Free Form stamped by customs at the airport before leaving the EU.

6. Important Considerations

  1. Timing: Arrive at the airport early to allow enough time for customs validation and refund processing, especially during peak travel periods.
  2. Currency Options: If you choose a cash refund, you can often select the currency (e.g., euros, USD). Be aware of exchange rates and fees.
  3. Keep All Documents: Retain copies of your Tax-Free Forms, receipts, and refund confirmations in case of disputes or delays.
  4. Unused Goods: Customs officers may refuse to validate your form if the goods appear used or are not available for inspection.
  5. Non-Refundable Items: Certain items, such as services, hotel stays, and food consumed in Germany, are not eligible for VAT refunds.

7. Example Calculation

Letโ€™s say you purchase a handbag for โ‚ฌ1,000 (including VAT) in Frankfurt:

  • VAT included: โ‚ฌ159.66 (19% of the pre-tax price of โ‚ฌ840.34).
  • Refundable VAT: Approximately โ‚ฌ135-145 after deducting processing fees.

By following this guide, you can efficiently claim your VAT refund in Frankfurt, Germany, and enjoy savings on your purchases. If you have further questions or need clarification, feel free to ask!