VAT in Spain

As far as you're concerned, it's basically a sales tax. I don't know what the VAT tax is in Spain, but it's going to be close to 20%. You can't get a refund on hotels or restaurant meals...only on stuff you buy to take home. Personally, I have never found it worth the trouble – forms from merchants, other documentation, and going through some extra hoops at Customs. No thanks. I might feel differently if I were spending a lot of money, but I wouldn't worry about it for run of the mill purchases. Too much hassle for me. That's just me.

thanks - that helps. BTW, the VAT in Spain is now 21%

If you wish to claim back VAT the item must be of sufficient value and completely unused when you leave the EU, and you must have all the correct forms and complete more forms and claim at the airport. Nothing that you have consumed - such as hotel nights, tickets, fuel, tours, admissions, food, clothes purchased then worn, etc., count.

It's only worth it if purchasing very expensive gifts, especially if you have the merchant ship it for you. If it's expensive, the merchant likely has the paperwork and knows the system to walk you through it. Lot's of forms to fill out.

Actually, Gladys, the paperwork is not all that difficult. Be certain to pick up the paperwork from the seller BEFORE you purchase. Some merchants will claim, after they have made the sale, that they do not participate. Perhaps that is true, but I suspect that if providing the document made the difference between a sale and no sale, that the paperwork would magically appear.

Gladys, the VAT is already included in the price, so it's "invisible" to you. It is itemized on many bills, but that's only after you pay; when you are quoted a price (in a store, restaurant, etc), it's already included. Remember this when looking at prices; for instance, a $10 item in New York City actually costs $10.88, while a €10 item in Spain costs €10. Yes, you can only get a VAT refund on items you take out of the EU, unused, and there is a minimum amount you have to purchase to be eligible (I think it's a minimum per store, not just per country; the rules do vary for each country). If you think you will be buying expensive items to take home (or have shipped home), it may be worth investigating the details. Otherwise, you don't have to worry about it. As said above, there is some hassle involved; I've read that some had no trouble getting the forms stamped at their departure airport, and others did.

There are detailed instructions here:
www.ricksteves.com/plan/tips/vat.htm

Unlike sales tax, it's already included in the price. What the price tag says includes VAT, and is the total you pay at the register. Refunds come from only some retailers, and then only on larger purchases (maybe 100 euro minimum). You still pay the ticket price but can get a refund of the VAT by filling out the paperwork and following the procedure to the letter. As has been said, you can't get it on food, lodging, etc. Since I seldom buy an expensive souvenir, I haven't worried about a refund in years.