Why are tourists not required to pay VAT?

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2026-07-12 12:00

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Tourists are typically not required to pay Value Added Tax (VAT) on certain purchases because many countries implement a tax refund scheme for non-residents. This allows tourists to claim back the VAT on goods they take home, incentivizing spending and boosting tourism. Additionally, it helps to encourage foreign visitors to shop and support local economies without the burden of additional taxes.

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