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SHOPPING

EXPLAINED: How British and other non-EU tourists can profit from tax-free shopping in Spain

British tourists travelling to Spain - when it has been possible - have been able to make the most of tax-free shopping since the UK formally left the EU at the beginning of 2021.

jewellery store in spain, vat tax refund for non-eu tourists
VAT refunds in Spain apply to apply to fashion items, cosmetics, jewellery, technology and some food and drink items.

There are a lot of changes to be aware of since the UK left the EU, covering everything from passports to Bovril, pets to phones, but there is one benefit to UK tourists in Spain.

Residents of England, Wales and Scotland can make the most of Tax Free Shopping in Spain and the rest of the EU – which means that they can save up to 21 percent of the cost of certain goods by claiming back VAT on their purchases.

It does not apply to services– you can’t get VAT back on your restaurant bills, car rental, theatre tickets, flights or train tickets. 

But it does apply to fashion items, cosmetics, jewellery, technology and some food and drink items. 

In 2018, the Spanish government removed the minimum spending amount of €90.16 that previously applied to Tax Free Shopping transactions made in Spain, a limit that still exists in most EU nations. 

In other words, whatever the value of the goods you purchase, you have the right to claim back the VAT (IVA in Spanish). 

Since January 2019, all retailers within the European Union including Spain’s are legally obliged to assist non-EU customers such as British, Chinese or American tourists in the process of claiming their VAT paid on purchases while visiting.

At the time of purchase, ask the retailer for a VAT refund form, which must be signed by both the retailer and you. If they don’t speak English, ask them for el formulario DIVA (the Spanish government’s tax-free form).

However if this is not on offer, non-EU residents can claim back VAT later, just make sure you keep the full receipt. 

Small retailers in Spain sometimes don’t have the time or resources to carry out the tax-free process, some even prefer to offer a discount to avoid the paperwork.

Whatever paperwork you have, make sure you go to the airport early with your purchased goods, passport and boarding pass to get your documents stamped by customs before your flight. 

Some Spanish airports also have machines which allow you to carry out the process yourself, although for this you will need the DIVA form. 

Once your form has been stamped you send it back to the retailer to claim your refund.

Alternatively, Global Blue also has refund offices in the following locations across Spain:

Algeciras, Alicante Airport, Andorra La Vella, Barcelona Airport, Downtown Barcelona, Benidorm Downtown, Ibiza Airport, Lloret de Mar, Mallorca Outlet, Madrid Downtown, Madrid Airport, Malaga Airport, Malaga Downtown, Marbella, Palma de Mallorca, Sevilla, Tarifa- Cádiz, Valencia Downtown and Viladecans Downtown.

Using a tax-free company will cost you some commission but it will make the process go smoother.

And there are also a number of apps that can make the process easier still, including Global Blue and another company called Zapptax, which also take scanned forms and inform the retailer. 

Deducting VAT from good purchased in the Canary Islands isn’t possible as the archipelago has its own system called IGIC.

woman shopping in spain
Whatever the value of the goods you purchase, you have the right to claim back the VAT. Photo: Arturo Rey/Pixabay

More specific information for British tourists in Spain

Now that the UK has left the EU, British tourists and visitors aged 16 and over, who have been in Spain for less than six months, are eligible to shop tax free in the EU, provided they:

  • Live in England, Scotland or Wales, and can prove it by showing their stamped UK passport (UK nationals who are resident in the EU present residency documents when entering, only tourists should get a stamp in their passport on entry and exit)
  • Meet the minimum spend criteria of the country in which the purchase is made; Spain doesn’t have a minimum amount anymore
  • Take the goods out of the EU (aka ‘back home’) within three months of purchase.
  • The goods should be for personal use or a gift

When you leave Spain to return to the UK, present your purchases and the form to customs for approval. It is important to note that items on which you are claiming a refund must be unused and in their original packaging.

Officials will stamp and return the two sheets of your VAT refund form to you. 

If you leave the EU by train – Get your VAT refund forms stamped by customs officials, either during your journey or at the border crossing station (at the EU exit point). 

If you leave the EU aboard ship or by road – You must have your VAT refund forms stamped by the customs office at the final port or road exit point in the European Union.

If you leave the EU from another Member State than Spain– After an inspection, the customs office of the final Member State you visit before you return to the UK will stamp and return your forms.

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TRAVEL NEWS

EES: Could the launch of Europe’s new border system be delayed again?

After being postponed several times already Europe's new biometric Entry/Exit border system (EES) is set to be rolled out in October, but with fears of lengthy queues, problems with a new app and demands for more time, could it be postponed again?

EES: Could the launch of Europe's new border system be delayed again?

Could the entry into operation of the EU entry/exit system (EES), the new biometric passport checks for non-EU citizens at the Schengen area’s external borders, be delayed yet again?

Originally planned for May 2022, EES has already been postponed many times.

The current launch date, set for October 2024, was chosen to avoid periods of peak traffic and France in particular had requested to avoid it being launched until after the Paris Olympics this summer.

When asked to confirm the October start date this week a spokesperson for the EU’s Commission told The Local that the “roadmap” for the EES IT system foresees it will be ready for Autumn 2024. But the actual start date, in other words, the day when passengers will have to register, would be confirmed nearer the time.

The spokesperson said: “The exact date will be determined by the European Commission and announced on the EES official website well in time for the start of operations.”

READ ALSO: Your key questions answered about Europe’s new EES passport checks

But the reasons are adding up to suggest an October start date is optimistic, perhaps even unlikely.

In the annual report on the ‘State of Schengen’ published last week, the European Commission spelt out that severe challenges remain if member states are to be ready on time.

“In 2023, efforts to ensure the entry into operation of the Entry-Exit System in the autumn of 2024 were accelerated… While important progress has been made across the Schengen area, some Member States are still falling behind, notably regarding the effective equipment of border crossing points. The Commission calls on all Member States to urgently accelerate preparations to ensure the timely implementation of the system…”

A map in the report shows that preparation is still “in progress” in 13 Schengen area countries, including Germany, Norway and Switzerland. “Outstanding issues” still impact Portugal, Malta and Bulgaria.

The state of play for the preparations for EES across EU and Schengen states. Image: European Commission.

There are also reports that EU heavyweight Germany is trying to persuade Brussels to delay.

Matthias Monroy, editor of the German civil rights journal Bürgerrechte & Polizei/CILIP claimed on his website that “the German government is lobbying in Brussels to postpone the date once again, as otherwise the German tests of the EES cannot be completed in full. Other EU countries are also behind schedule, with only eight of them having reported successful integration.”

Even on a French government website it talks of EES being rolled out some time “between the end of 2024 and 2025” rather than stating October 2024.

And according to recent media reports, French airports have been advised to be ready for November 6th, rather than October. 

READ ALSO: EES and Etias – what are the big upcoming travel changes in Europe?

A planned EU app, believed to be essential to the smooth operation of EES because it would allow non-EU visitors to register in advance of travel will not be ready, Gwendoline Cazenave, Managing Director of Eurostar International, the company operating train services via the Channel Tunnel, has told the BBC. The EU however insists the app does not need to be up and running before EES is introduced.

In the UK, which will be heavily impacted by EES due to the fact it is no longer in the EU and so British travellers are no longer EU citizens, the House of Commons European scrutiny committee is conducting an inquiry on the potential disruption the introduction of the EES will cause at the border.

Several respondents have recently raised the alarm about the possible delays the system could cause, especially at the UK-France border, which is used by millions of passengers each year who head to France and other countries across Europe.

Ashford Borough Council in Kent has warned of the possibility of more than 14 hours queues to reach the Port of Dover, which has already been struggling increased checked after Brexit.

The BBC reported that back in March, a P&O Ferries director said the IT system should be delayed again.

Airlines have also complained about the fact pre-travel EES requirements would make last minute bookings impossible.

The Union des Aéroports Français (UAF), which represents airports in France, has simply said more time is needed.

In other words, it would be little surprise if the roll out was delayed again beyond October 2024.

But the Commission spokesperson told The Local that “the timeline for the entry into operation of the EES took into account all the necessary activities to be performed by all relevant stakeholders to ensure a timely entry into operation. 

“The Commission is working very closely with eu-Lisa [the EU agency in charge of the IT system], the Member States and carriers to ensure that everything is ready for the timely and successful launch of the Entry Exit System.

“The roadmap for the delivery of the new IT architecture foresees that the Entry/Exit system will be ready to enter into operation in Autumn 2024.”

New digital border

The EES is a digital system to register travellers from non-EU countries when they cross a border in or out of the Schengen area, the travel-free area. It will be deployed in 29 countries across Europe including 25 EU states plus Norway, Switzerland, Iceland and Liechtenstein. Ireland and Cyprus are the only EU members who won’t apply the EES system.

It doesn’t apply to non-EU nationals who are legally resident in an EU/Schengen area country or those with dual nationality of an EU /Schengen county. The system was designed to increase security and to ensure that non-EU nationals visiting the Schengen area short-term do not stay more than 90 days in any 180-day period.

Instead of having the passport stamped, travellers will have to scan it at self-service kiosks before crossing the border. However, fingerprints and a photo will have to be registered in front of a guard at the first crossing and there are huge concerns the extra time needed could generate long queues in the UK, where there are juxtaposed border checks with the EU.

Preparations are ongoing throughout Europe and some countries have made good progress.

In France, Getlink, the operator of the Channel Tunnel, has recently reported that new EES infrastructure is finished at its French terminal of Coquelles, which will allow travellers to register their biometric data while travelling.

Eurostar is also installing 49 kiosks in stations for the registration of passengers. But the Union des Aéroports Français (UAF), which represents airports in France, said more time is needed.

Exempted

Meanwhile, the Polish government has urged UK citizens who are beneficiaries of the EU-UK Withdrawal Agreement to get a residence permit “in the context of EES/ETIAS”, even though there was not such an obligation to stay legally in Poland post-Brexit.

“Having such a document is beneficial as it will exempt from future Entry/Exit System (EES) registration when crossing external borders and from the need to obtain an ETIAS travel permit in relation to short-term travel to EU/Schengen countries,” the government page says.

This article as published in collaboration with Europe Street news.

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