Ireland VAT Tax Refund

Throughout your trip to Ireland you'll see signs for "Tax Free Shopping", which can be misleading or confusing to people who have never gone through the process before. Americans, and those not a member of the European Union (EU), can apply for a VAT Tax Refund at the airport when exiting Ireland however only a portion of the total VAT Tax paid is refunded, making "Tax Free Shopping" more or less "Reduced Tax Shopping".

Each purchase you make on clothing or souvenirs is taxed at a rate of 21% (as of 2008) however many stores participate in some type of "tax back" program whereby a third-party company processes the receipts and vouchers you turn in. That third-party company takes a percentage for their work which is why you have three different types of tax back vouchers -- making them all compete for each shop's business.

Keep in mind that small purchases aren't worth declaring therefore you should set a minimum limit when asking for Tax Back... and remember, you won't receive the entire VAT Tax back! On average you'll receive 60% of the VAT paid for each item purchased.

On-the-Spot Refunds

Large department stores may take the tax off right there, leaving more in your pocket however this usually only happens when making credit card purchases.

When the tax is taken off by the merchant, a voucher is issued for your purchase and your credit card number is recorded. If you do not complete and submit the voucher at the airport, your credit card will be charged for the VAT Tax previously discounted.

Airport Refunds

Most merchants collect the tax and issue a Tax Back Voucher for purchases, requiring you to obtain your refund at the airport.

Depending on the Tax Back Voucher you receive, you may receive your tax back in the form of cash or a credit to your credit card. Each tax refund company has different rules for processing refunds (see below).

Automated Airport Kiosks

While shopping at Blarney Woolen Mills I was given what appears to be a credit card for my Tax Refund, a reusable electronic card which records all of your purchases and allows you to complete the Tax Back process quickly and efficiently at the airport. Mind you I never got to use the kiosk as we had a technologically illiterate person unable to operate the machine, holding up the line for over 30 minutes. At that point an attendant came out and advised that we could simply complete the process online when we returned home ... so I did. Just another little enhancement to the process.

Tax Back Refund Companies

There are three or so companies that process tax refunds at the airport: Global Refund, Money Back, Tax Back and Customs Revenue and you'll need to stand in each line for which you have a Tax Back Voucher. Simply look at the top of your form and match the name/logo to the sign and turn in only those forms that match. Each company processes the tax refund differently...

Global Refund gives cash back in US$ or €, refund to credit card or check via mail. They will also process those vouchers where the tax has been taken off at the store, ensuring you won't be charged for the tax. A receipt is given for your refund.

Tax Back is the purple logo and they do not give cash back at the airport. You can enter a credit card number for your tax back, ensuring a quicker refund or you may have a check mailed to you in U.S. dollars. A receipt is not given but I haven't had a problem in the past with a voucher gone missing or a refund not received.

Customs Revenue is sometimes used and you will receive your refund in the mail. Simply fill out the voucher and deposit your unsealed envelope at the desk and you're finished.

Money Back is the newest and most technologically advanced system out there. You will receive an electronic card where all of your purchases will be stored when in Ireland. Simply use your MoneyBack Card at an airport kiosk, enter your Passport and travel information and your VAT tax will be refunded to your card or ensure it is not charged back to your card. If the kiosks are busy, you can complete this process online when you return home! Just visit http://www.moneyback.ie and follow the online instructions.

It's very important to turn in all vouchers regardless of getting money back at the airport. If the tax was taken off at the store (usually larger stores like Fahlers and Blarney Woolen Mills) you must turn in the form or you will have the tax charged back to your credit card.