How do Europe's tax refund schemes operate?

With Value Added Tax running at 20 per cent or more in many European countries, it's worth taking advantage of their tax refund schemes available to non-EU residents.

However care is needed. At the point of purchase, ensure the shop is part of the tax refund scheme.

Your purchases must be above the minimum threshold. You might also need to complete a tax refund form.

When you leave the EU, locate the tax refund office at the airport and arrive early, there are often queues.

You'll need to present your goods and the paperwork, which will be certified by a customs official.

At some airports the tax refund will be issued on the spot, otherwise you need to mail the certified documentation to the shop where you purchased the goods.

The tax refund will appear on your credit card, minus an administration fee.

Some larger stores operate their own tax refund office that issue an immediate refund.

You might pay a service fee, but it's usually small and this is the most convenient solution.