Most purchases in Ireland are subject to VAT (Value Added Tax) that varies between 12% and 21%. This tax is already included on in the ticket price of the items you are buying. The price of the item is all you pay.

However, as a visitor from outside the European Union you can reclaim the VAT you have paid on many items prior to your departure. All tourist oriented shops will offer this service and some department stores. Look for the appropriate sticker at the front door or at the counter.

There are two ways to reclaim VAT in Ireland: Tax-Free Shopping and Duty Free. Below are directions on how to take advantage of each.

What is Tax-free Shopping?
Tax-free Shopping is offered in a number of larger shopping establishments and department stores such as Dunne's Stores, Marks & Spencers, Brown Thomas, and other tourist oriented shops. Shops that offer Tax-free Shopping will have the Tax-free Shopping or CashBack sticker displayed either on their shop window or at the cash registers/tills. If you have any question about this ask any of the sales representatives.

Tax-free Shopping does not mean that you will not be charged VAT but that you can get a refund at the Tax-free Shopping counter at the airport prior to your departure. To get your refund:

If you're taking the items with you:

• When your sales transaction is complete you will be given a separate multi-part voucher that has your total purchase written on it. Keep this with the original store receipt.

• Save all of the vouchers you receive while shopping around Ireland with the original store receipt.

• When you have time fill in your name, address and phone number on each of the vouchers and be sure that each of the original store receipts are attached.

• When you are leaving Ireland you will need to turn these in at the airport. Check in at your airline, get your boarding pass then go to the Tax-free Shopping counter where you will turn these vouchers in.

If you're having items shipped home:

• Your sales representative will have deducted the tax on the items you're purchasing.

• Obtain from the sales representative the multi-part voucher stating that you have already received your tax refund.

• Be sure to turn these vouchers in before boarding the plane.

What is Duty?
Duty Free is another form of tax free shopping. You will find Duty Free Shops in the airports, on ferries, and on airplanes. Shops that offer Duty Free will be called DFS or Duty Free Shop.

Duty is a tax imposed by governments on the import of certain products, primarily tobacco, alcohol and some electrical goods. Duty Free shopping allows you to purchase goods up to a certain limit without paying any duty on them. Check the notices up in airports and ferry ports for up to date limits, or if in doubt ask a sales representative.

Current limits are:

You will be given a similar multi-part voucher as Tax-free Shopping but in this case the duty is taken off the bill at the point of purchase. You must have a credit card for these purchases. You will be required to fill in and return these vouchers at the DFS desk in Dublin, Shannon or Belfast International airport before departure. This proves the item is leaving the country. You must have a boarding pass to prove departure so be sure to check in first. Cork Airport has a counter to return this voucher, but there's usually no one there. There's a slot in the desk for you to drop your paperwork into.

If you fail to turn these vouchers in you must have them notarized when you get home and posted back to the DFS office in Ireland in the envelope given to you at the shop where you bought these duty free items. If you fail to do so within 90 days of returning home the duty will be charged back to your card.

Note: There's another system at work in Ireland that's supposed to be easier to manage called MoneyBack. This is a VAT refund program whereby the customer is given one of the MoneyBack cards which has a magnetic strip on the back similar to a credit card. When purchases are made in participating retail outlets, the card is swiped. When the customer returns home, they access the MoneyBack website to see copies of all their purchases and print the forms that must be posted back to the MoneyBack office in order to receive the tax back on the purchase. This program makes purchasing items in-store easier for both the customer and the sales staff, but could become problematic when the customer doesn't understand the program adequately. So be sure to read through their site so you understand how the program works before making purchases under this scheme.