Shoppers from Brazil and the United States take the lead in tax-free shopping worldwide
## Top Countries for Tax-Free Purchases in Portugal
A recent report titled "2024 Report on Combating Tax and Customs Fraud and Evasion" provides insights into the international spending patterns in Portugal. While the report does not explicitly list the top countries for tax-free purchases, it does highlight the nations that account for a significant portion of the total value of purchases with Value-Added Tax (VAT).
Brazilian tourists led in tax-free purchases, accounting for 22% of nearly 90,000 travellers. Brazil, the United States, Angola, China, and the United Kingdom were among the top purchasing nations, collectively accounting for more than 65% of the value of purchases with VAT.
## Average Spending and Tax-Free Purchases
The report also reveals some interesting trends in average spending. Brazilian tourists had an average spend of 392 euros, while Angolans spent an average of 360 euros. However, Chinese tourists spent the most, with an average expenditure of 1,657 euros. American tourists, despite being the fastest-growing nationality in visits to Portugal in 2024, spent the most, on average, among the top three nationalities, with an average of 1,077 euros.
## VAT Refund Process in Portugal
Portugal offers VAT refunds for non-EU residents who spend at least €50 on a single purchase. The VAT refund process involves obtaining a special tax-free form and using an e-Tax Free Portugal kiosk to claim the refund.
## Distribution of Certified Invoices
The report also sheds light on the distribution of certified invoices. Lisbon airport accounted for approximately three-quarters of the total value of certified invoices, while Faro Airport came next with a weight of 2% and a total VAT of over seven million euros. Porto Airport accounted for 7% of the total value of certified invoices, with the total including VAT of around 35 million euros.
## Total Value of VAT Exemptions
The total recognized value of VAT exemptions was approximately 86 million euros, representing an 8.2% increase compared to the total number of invoices registered in the previous year. This suggests a growing trend in tax-free shopping in Portugal.
The data on visits to Portugal was provided by the Instituto Nacional de Estatística (INE), and the report was prepared by the office of the Secretary of State for Tax Affairs and submitted to Parliament. The report provides valuable insights into the international spending patterns in Portugal, offering a glimpse into the preferences and spending habits of tourists from various nations.
- The report on combating tax and customs fraud and evasion in Portugal reveals that Brazil, the United States, Angola, China, and the United Kingdom are among the top nations accounting for more than 65% of the value of purchases with VAT.
- In terms of average spending, Chinese tourists spent the most among the top purchasing nations in Portugal, with an average expenditure of 1,657 euros.
- Portugal offers VAT refunds for non-EU residents who spend at least €50 on a single purchase, with the VAT refund process involving obtaining a special tax-free form and using an e-Tax Free Portugal kiosk.
- According to the report, Lisbon airport accounts for approximately three-quarters of the total value of certified invoices, indicating a significant concentration of tax-free purchases there.
