Does Gibraltar have VAT?

Short answer

No. Gibraltar has no VAT, and the Transaction Tax introduced on 15 July 2026 is a separate tax charged on goods at import or manufacture. It does not introduce EU VAT in Gibraltar and does not apply to ordinary services.

Detailed answer

Because Gibraltar has no VAT, visitors cannot claim VAT refunds on purchases made there. Goods taken into Spain above the allowance thresholds during the transitional period can qualify for a refund of the Transaction Tax, with Spanish tax then payable.

The standard Transaction Tax rate is set to align with the lowest standard VAT rate in the EU from the third year.