Help with Value Added Tax in the Mediterranean

You may have heard about a “value-added tax” (VAT) when organizing your Christian cruise to the Mediterranean. This is an added retail price Israel includes to merchandise bought in the country. To help you save money during your travels, we’ve provided important information about this sales tax.

Tax Rate

The VAT rate in Europe hovers around 16-25% of the item's total price. The tax is usually included in the cost rather than added on later at checkout. The specific rate depends on the kind of merchandise: higher for luxury items and lower for basic items such as food.

VAT Refund

In many cases, travelers who live outside the European Union can apply for a VAT refund on items they purchased on their travels. For tourists, the refund doesn’t apply to services such as hotel rooms or meals in restaurants. Always ask the store if they participate in the VAT Refund Program.

Qualifying for the VAT Refund

You’ll need to spend at least $100 or the equivalent in local currency in a VAT refund-certified store in a single transaction. Look for the “Tax-Free Shopping” logo, which most retailers participating in the VAT refund often place on their doors for easy identification.

While the process varies from country to country, you must usually complete a form at the shop and present your passport. Before your final departure from the European Union, you must submit all forms and receipts to Airport Customs for approval. Customs agents may ask to see the items, so have them handy in your carry-on luggage. The items must be new and unused to be eligible for the refund.

To help you identify VAT refund stores and apply to receive your VAT refund, we’ve provided a helpful overview of the process:

• Sometimes, a store will refund the tax to you at checkout; however, you still need to collect and present all of your paperwork to Customs when departing the country.
• The same applies if you ship your purchases home. Sometimes, you’ll get a refund before departure at the Cash VAT Refund desk at Customs in the airport. Otherwise, it will be mailed.
• You can also choose to have the retailer credit your VAT refund back to your credit card by mailing the documents stamped by Customs back to the store where you purchased the merchandise.
• When you travel to European countries outside the European Union (Switzerland, Norway, Croatia, Turkey), you’ll need to go through the same process at Customs as you depart from each country. As you travel through Europe with us, we will guide you through the process in each country.

Please note: Our guides will help you with this process throughout the tour and when you request your refund at the airport before departing for home.

For more information, please call one of our Reservation Coordinators at 800 247 1899, Monday through Friday between 8:30am – 5:00pm, Pacific Time.