GST refund and VAT refund for Indian tourists abroad — complete guide
By Saanvi Iyer (Sneha Krishnan is a chartered accountant turned travel writer based in Bengaluru. She specialises in tax refund processes, customs declarations and the financial side of international shopping — helping Indian travellers keep more of what they save abroad.) · Published · 12 min read
VAT and GST refunds for tourists can save 7% to 20% on purchases abroad. Here is how Indian travellers can claim them in Europe, Singapore, Australia and other countries.
Quick answer
As a non-resident tourist, you can reclaim sales tax (VAT, GST or equivalent) on purchases in many countries. The effective refund is typically 7% to 15% of the purchase price after processing fees. The biggest refund opportunities for Indian travellers are in EU countries (12-15% effective refund on 20-25% VAT), Singapore (up to 9% GST refund) and Australia (10% GST refund). The process requires asking for a Tax-Free Form at the store, getting it stamped at airport customs, and submitting it for refund. It is free money you are leaving on the table if you do not claim it.
European Union — VAT refund (12% to 15% effective)
EU countries charge VAT at rates ranging from 19% (Germany) to 27% (Hungary). Non-EU residents — including Indian tourists — can reclaim the VAT on goods purchased and taken out of the EU. The process:
- At the store: Ask for a Tax-Free Form (also called a Tax Refund Form). Stores participating in Global Blue, Planet Tax Free or other refund schemes will issue one. There is usually a minimum purchase amount per store per visit — typically EUR 100 to EUR 175 depending on the country.
- At the airport: Before checking in your bags, visit the customs stamp desk and present your Tax-Free Forms, passport, boarding pass and the purchased goods. A customs officer stamps the forms. In busy airports like Paris CDG, Rome FCO or Milan MXP, arrive early — the customs stamp queue can take 30 to 60 minutes during peak hours.
- Claim the refund: Submit the stamped forms at the Global Blue or Planet Tax Free counter at the airport for immediate cash or card refund. Alternatively, drop the forms in a mailbox and the refund is processed to your credit card in 4 to 8 weeks.
The effective refund is less than the headline VAT rate because refund companies deduct processing fees. On a EUR 1,000 purchase in France (20% VAT = EUR 200), expect a refund of roughly EUR 120 to EUR 150 (12% to 15% effective). This is still a significant saving — especially on luxury purchases where the absolute amounts are large.
Singapore — GST refund (Tourist Refund Scheme)
Singapore charges 9% GST. Tourists can reclaim this through the Electronic Tourist Refund Scheme (eTRS) at Changi Airport. The process is largely digital:
- At the store, present your passport and ask for an eTRS transaction. The store links your purchase to your passport electronically — no paper forms needed in most cases.
- At Changi Airport, use the eTRS self-help kiosks (located before immigration in departure halls) to process your refund. Scan your passport, verify the transactions, and choose your refund method (credit card, Alipay or cash at a GST refund counter after immigration).
Minimum purchase: SGD 100 at a single eTRS-participating store. The refund is up to 9% minus an administrative fee, so expect roughly 7% to 8% effective. For Indian travellers shopping for electronics at Mustafa Centre or watches on Orchard Road, the eTRS refund adds a meaningful discount. See our electronics shopping guide for specific price comparisons.
Australia — GST refund (Tourist Refund Scheme)
Australia charges 10% GST, and the Tourist Refund Scheme (TRS) allows departing tourists to claim it back. Requirements: minimum AUD 300 spent at a single store (can be across multiple receipts from the same store within 60 days of departure), and you must wear or carry the goods as hand luggage (customs needs to sight them).
The process is at the TRS facility in the departure terminal, after immigration. Present your passport, boarding pass, original tax invoices and the goods. Refund goes to your credit card, Australian bank account or cheque. Processing is relatively quick — 15 to 30 minutes typically.
A practical note: Australia's TRS refund is one of the most generous because the 10% GST is refunded with minimal processing fees. On a AUD 3,000 purchase, you get roughly AUD 270 to AUD 300 back (9% to 10% effective). Electronics, luxury goods and Australian-made products (Ugg boots, wine, skincare) are popular TRS purchases for Indian travellers visiting Sydney or Melbourne.
Other countries with tourist tax refunds
A quick reference for other countries Indian travellers commonly visit:
- Japan: 10% consumption tax refundable on purchases above JPY 5,000 at tax-free stores. Many stores process the refund at the point of sale (you pay the tax-free price directly). Very convenient.
- South Korea: 10% VAT refundable at participating stores (minimum KRW 30,000). Refund at airport kiosks or in-city refund shops.
- Thailand: 7% VAT refundable on purchases above THB 2,000 at stores displaying the VAT Refund for Tourists sign. Claim at Suvarnabhumi Airport.
- UAE (Dubai): 5% VAT refundable via the Planet Tax Free system. Minimum AED 250 per transaction. Process at airport departure.
- Turkey: 20% VAT (or 10% on food) refundable on purchases above TRY 100. Claim at airport.
- United Kingdom: As of early 2026, the UK does not offer VAT-free shopping for tourists. This policy may change — check before travelling.
The common thread: always ask at the store, always keep receipts, and always process the refund at the airport before your departure flight. Unclaimed refunds are money lost.
Tips to maximise your tax refund
Practical advice from experience:
- Consolidate purchases. Many countries have a minimum spend per store. Instead of buying across 5 stores, consolidate at one or two to meet the threshold.
- Arrive early at the airport. Customs stamp queues, especially at European airports during summer, can take 30 to 60 minutes. Budget this time on top of normal check-in.
- Do not pack refund items in checked luggage before the customs stamp. Customs officers may want to see the goods. Once stamped, you can pack them.
- Choose credit card refund over cash. Cash refunds at the airport incur higher fees and worse exchange rates. Credit card refunds take longer (4 to 8 weeks) but you get more money.
- Keep digital copies of all forms and receipts. If a mailed form goes missing, having a photo of the stamped form helps when disputing with the refund company.
- Check if your Indian customs allowance math still works after the refund. The refund reduces your purchase cost, which is good, but the item value for Indian customs purposes is typically the pre-refund price shown on the receipt.
Frequently asked questions
Can I claim VAT refund if I am transiting through an EU country?
You claim the refund at the last EU airport you depart from. If you buy goods in France and fly Paris to Frankfurt to Delhi, you get the customs stamp at Frankfurt (your last EU exit point), not Paris. If you fly Paris direct to Delhi, you stamp at Paris.
What if the customs desk is closed when I need my form stamped?
This can happen at smaller airports or during off-hours. Some countries accept digital stamps via apps (France has the PABLO system which is automated). At larger airports, the customs desk is usually open during all international departure times. If you miss the stamp, some refund companies allow you to mail the unstamped form with a copy of your boarding pass, but success is not guaranteed.
Do VAT refunds apply to hotel stays and restaurant meals?
Generally no. VAT refunds for tourists apply to goods you are taking out of the country, not to services consumed locally. Hotel stays, restaurant meals, spa treatments, transportation and similar services are not eligible for tourist VAT refunds.