A lawsuit filed in the EU last month could affect US tourists to Europe and beyond once people can begin traveling again--by allowing them to save more money when they shop abroad.
Tourists who visit Europe--as well as various countries in South America, Asia, and Africa--can get a refund of their value-added tax on goods they purchase that cost above a certain threshold. The rationale for countries to do this is that it should encourage tourists to spend more money while they are visiting their country--not just on goods but also on things like hotels and restaurants as well.
The VAT varies across the EU and ranges from 20 to 27 percent, so the savings can be sizable: someone purchasing a €500 handbag in Rome--which has a 22 percent VAT--could, in theory, save as much as €110 from her purchase.
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