Hello :
We are excited to be leaving for Rome on June 14 and then onto Budapest on June 20
We are renting a car in Budapest and will be charged VAT on the car. Apparently, we can claim this back as we are Canadian Foreigners?? But where does a person go to retrieve this VAT amount of 25% ??? If someone knows, I would appreciate the information and help. Thank-you, Ilonka !

You can receive a rebate of VAT only on objects that you buy and export from the country - not on goods or services that you use within the country - like food, lodging or car rental.

Yup, nytraveler is absolutely right. Only on "stuff" you take out of the country (or EU).

Just a little story on VAT. We took a Med cruise flying in/out of Milan. After hitting several countries and having several tax free forms, we arrived at Milan for our flight home.

We checked our luggage and then went thru security and then headed for the customs office to get our papers stamped to get our tax money back.

She, the Italian Customs lady, asked to be shown the "stuff" we purchased. We told her it was in our checked luggage. Well, too bad. She wouldn't stamp our papers.

My friend who went a few minutes before me had no problem. When she got to me she must have been in a fowl (pun intended) mood.

I've never been asked before, even on my most recent trip to Ireland, but I guess they have the option if they want.

It's not an option. They are required to see the items and the receipts.

Dear Responders:
Thanks for the update on the VAT. I guess the car rental VAT is now part of cost.
We will be sure to keep tabs on the "stuff" we buy though. Grandma wants us to buy "Hungarian Noodles " for her soups ! ... Ilonka

Hi llonka,

You only get a VAT refund if you spend a minimum (usually about 175E) in *one* shop.

That's not the case in all countries. Just got back from Ireland, and I asked for and received a tax form for all my purchases, including one 5 Euro purchase. The VAT refunded was about 12%.

Ireland had a private company doing all the paperwork for VAT refunds -- a portion of the refund went to the company for their processing fee.