Travelers visiting Europe may be missing out on potential savings through value-added tax (VAT) refunds on their purchases. During a recent trip to Italy, a traveler learned that their girlfriend received a refund of €17 (approximately $20) on a €155 (around $181) shoe purchase. VAT refunds can significantly benefit U.S. travelers, especially given rising airfare costs and unfavorable exchange rates. However, many shops do not proactively inform customers about the option to claim VAT refunds, making it essential for travelers to ask for the necessary paperwork. VAT rates vary across Europe, with countries like Hungary imposing a high rate of 27% while Switzerland has a lower rate of 8.1%. Minimum purchase thresholds also apply; for example, Italy requires a minimum of €75 (about $88) for refunds. The process for claiming refunds includes obtaining documentation from retailers and processing it at the airport, which may involve waiting in line. While the process can be simple, experts advise considering the value of the items purchased to determine if the effort is worthwhile.