New research from ABTA has uncovered a significant knowledge gap among British holidaymakers, with half unaware they can reclaim money on shopping done in most European countries.
The VAT Refund Awareness Gap
Exactly 51% of UK adults admitted they didn't know they could claim back VAT on purchases made during EU holidays, according to the survey of 1,000 people. This lack of awareness means thousands of travellers are missing out on potential savings when returning home.
While almost half (49%) of Brits are aware that UK passport holders can claim VAT refunds in EU countries, only one in four actually understands how to make a claim. Just 12% of respondents said they had never claimed back VAT on European purchases.
Generational Divide in Knowledge
The research revealed a striking generational divide in awareness levels. Younger travellers aged 18-34 emerged as the most informed, with almost 70% aware of their right to claim VAT refunds.
In contrast, only 38% of those over 65 knew about the opportunity. Awareness was particularly low among the 55-64 age group, where just 33% of people knew they could claim money back.
How the VAT Refund System Works
Most EU countries operate VAT refund schemes for non-EU travellers on eligible goods, provided specific procedures are followed before departure. The spending thresholds and refund rates vary between countries.
In Spain, shoppers must spend at least €90.15 (£79.40) in one store to qualify for a 21% refund, while Greece requires a minimum spend of just €50 (£44) for a 24% return.
To claim money back, travellers need to request a tax-free form and show their British passport at the time of purchase. Refunds are processed when leaving the EU at designated kiosks or stands in airports, ports, or train stations.
Travellers must present their receipt, tax-free form, boarding pass, passport, and the actual goods for approval. The funds are then returned either in cash or to a card of choice.
Certain goods and services are excluded from refunds, including immediately consumed food and drink, alcohol and tobacco products, goods used within the country, and services like hotel stays and entertainment.
Travel Insurance Concerns Emerge
The research also highlighted worrying trends in travel insurance coverage. Two-thirds of young Brits reported travelling abroad without health insurance, potentially exposing themselves to high costs for medical emergencies, flight cancellations, or lost belongings.
Nearly half of all Brits (46%) admitted they had travelled without any form of travel insurance for trips abroad, despite the fact that more than a quarter (29%) have previously made claims averaging over £4,500.
Graeme Buck, Director of Communications at ABTA, advised travellers: 'Nobody wants to miss out on money which they are entitled to. Be a VAT victor and know how to claim VAT refunds to make those holiday spending sprees in Europe go that little bit further. It's always worth asking at the till to see if your purchase is eligible.'
