All non-residents of the Faroe Islands are exempt from the 25% value added tax, VAT, (minus a service charge), on purchases over DKK 300, subject to the conditions of regulations.
When shopping look for the “Tax Free” signs in shops windows, which are located in over 200 shops across the Faroe Islands.
When you are ready to reclaim the VAT you paid on goods purchased in the Faroe Islands, you can do this at the airport, on the Norrøna ferry and at Visit Tórshavn. After a service charge you can collect between 12% to 18% of the payed VAT.
Here is what you do:
- At the register, upon purchasing your item, ask for a Tax Refund Cheque. Fill out the form.
- Prior to check-in upon departure, have your form validated by either customs at Vágar Airport or by customs located in the departure hall of M/F Norrøna (the cheques must be stamped by customs before boarding). The customs agent may ask to see your purchases before validating your Tax Refund Cheque.
- Collect refund either by credit card or cash.
If you prefer credit card, write your credit card number on the Tax Refund Cheque and mail the envelope for a direct refund to your credit card.
Note: it might take up to 6-8 weeks for the card to process and for you to receive the funds
If you prefer a cash refund, go to the Information Desk at Vágar Airport or on board the M/F Norrøna. Refund can also be given on board cruise ships.
Note: A fee will be charged for refunding.