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Value Added Tax. How it works?

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Old Aug 1st, 2013, 02:50 AM
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Value Added Tax. How it works?

I've read some information about getting reimbursed for Value Added Tax in Ireland. The process seems pretty time consuming and cumbersome. Can anyone give me a simple explanation of how it works, and how to get reimbursed for the VAT? If I have to process things at the airport on my departure day, how much additional time will that take? Thanks for any help you can give me with this.
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Old Aug 1st, 2013, 03:26 AM
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I've never bothered because it's a lot of extra work to get back a few bucks. Remember that you can only get a refund if you meet some pretty specific requirements ( https://www.vatfree.com/en/for-trave...areyoueligible ):

N - you are a non-EU resident and purchase goods in the EU for personal use.
E - you export the goods to your home country within three months after the time of purchase.
M - you spend a minimum amount per shop, per day. Check minimum purchase amount per EU-country
S - you have collected a Customs stamp either at EU-Customs or at Customs upon arrival in your home country, as proof that you have exported the goods.

Please note!
Your purchase receipt must state the following information:
NAC* details of the shop (seller)
NCP** details of yourself (buyer)
Description of goods
Purchase price
Total amount VAT

*NAC = name, address and country of residence
**NCP = name, non-EU country of residence and passport number



Rick Steves has a good write-up about what all is involved: http://www.ricksteves.com/plan/tips/vat.htm

Like I said, it's not worth the hassle for me to only shop at certain shops and spend at least X there, remember to get the correct receipt, and spend the time at the airport getting all the needed documentation in order. If I actually spent a lot of money on souvenirs and Rolex watches when in Europe, I'd be more inclined to do it.
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Old Aug 1st, 2013, 03:38 AM
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Agree that this is a fairly complex problem. Generally it is only worthwhile if you are spending quite a bit (several hundred $) in the same store - which participates in the program and provides the paperwork you need.

We have never done it since we typically don;t spend that amount of money on purchases that we take out of the country unused.

Note that this does NOT apply to VAT on items consumer (hotels, gas, food etc) or used (clothes or jewelry that you wear) within the EU - only on unused items you export - and that you can produce at the time you apply (so no packing in checked bags.
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Old Aug 1st, 2013, 03:39 AM
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Sorry - we don;t do this - but it might work well on items you have shipped to yourself at home.
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Old Aug 1st, 2013, 05:24 AM
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http://www.dochara.com/tour/save/tax...ng-in-ireland/ Just don't brag about it loudly in a bar full of locals..
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Old Aug 1st, 2013, 06:13 AM
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I can only speak to Ireland, of course, but if you have the shop ship things home for you they will take off the VAT. I'm not a big enough spender to worry about claiming it on things I carry home.
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Old Aug 1st, 2013, 06:38 AM
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>>S - you have collected a Customs stamp either at EU-Customs or at Customs upon arrival in your home country, as proof that you have exported the goods.<<

My experience is that we had to get the documents stamped at customs where we left the EU to fly home. If you wait until you get home it will be too late, ime. Then, many, many months later (sometimes a year) you'll receive your tax back, minus processing fees. (It's a good idea to have the items with you to show customs if they ask. Although if you're returning to the U.S. they are not so worried.)

Because of the fees, you do have to buy a lot to make it worth it. I suggest that you have your paperwork all prepared before you go to the airport (or wherever) to leave as that will help expedite the process.
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Old Aug 1st, 2013, 07:27 AM
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A lot depends on which country you leave. . I did it several times in UK when I had bought some high dollar items and it was a snap . . took maybe 15 mins.

Tried once in Rome and it was a nightmare . . took so long that I had to give it up and run for the plane.

Also a lot depends on how good the documentation from the seller is . . The more they do for you the smoother it seems to go.
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Old Aug 1st, 2013, 08:01 AM
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It is not that big a deal. Just did it in Ireland and England. Normally when you purchase the items the salesperson gives you the forms with the store's part filled in. You have to fill in your passport number, address, etc. You don't need to have your passport with you, sometimes they ask for picture i.d., my driver's licence was enough and I filled in my passport number back at the hotel.

Big stores like Harrods, Selfridges, Harvey Nichols etc will have you go to the customer service dept to have all the paperwork done. In England you have to spend 50GBP in one store to get the VAT back, not just on one item, so for example in Selfridges you would shop all around the store then when done with that store, take all your receipts to customer service to process the paperwork.

Then when you go to the airport there are clearly marked places to go to get the papers stamped and sent off.
I just did this at Terminal 3 (the place is right outside the entrance) at London Heathrow, there was no lineup (first thing in the a.m.), it took not even five minutes and I have already had the first credit back on my credit card statement. (left on July 15) I always make sure I have filled in all the paperwork properly before heading to the airport. (takes a couple of minutes, not a big deal)

I have done the same at Venice airport and Frankfurt and London many times, always without a problem, except once when somehow the papers weren't sent in from the airport and I was charged back the refund I had been given!

I don't understand the unused thing. Anything I buy for myself I'm usually wearing while there, it has never been a problem.
In fact only once have I been asked if I have the goods with me to take out of the country.
I used to make sure the goods were in my carry on but now in most airports you do this processing before you get to luggage drop off so IF they ask to see it, well you have your suitcase right there.
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Old Aug 1st, 2013, 08:09 AM
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We have done it a lot because we are Mephisto fans and happy to save 17% off the already lower prices in France.

Some governments now only you get a percentage of the VAT back, but I can't give an example at the moment.
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Old Aug 1st, 2013, 08:13 AM
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I've only done it at AMS and it took just a few minutes to get a stamp at the customs counter. I had the receipt and form and they did ask to see the item. There was another counter where I could've gotten a cash refund on the spot but I was in a hurry and just mailed the form after returning home and had them credit the refund to my credit card which appeared after a couple of weeks.
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Old Aug 1st, 2013, 08:19 AM
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And if you don't have time to get the stamp at the airport, you can often take the same documentation and goods to the consulate or embassy of the country where you purchased the goods once you're home and they'll stamp it there but that does become more of a hassle.
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Old Aug 1st, 2013, 09:55 AM
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In Ireland, as opposed to other EU countries, there is no minimum purchase to qualify for the refund.

http://www.revenue.ie/en/tax/vat/lea...html#section17
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Old Aug 1st, 2013, 10:24 AM
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I can't speak about Ireland, but I've done the forms, and received the refund, right at the airport in Italy. It really isn't that big a hassle, but of course, that depends on how much you've spent. Also, in Florence, some banks will do the transaction right at the teller's window. You get refunded in the currency of the country listed on your passport.
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Old Aug 1st, 2013, 10:50 AM
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"In England you have to spend 50GBP"

Untrue. There is no legally-required minimum in the UK, and national governments (England, of course, isn't a nation) have no power to set one anyway. VAT is the one tax with standard EU rules. In effect, the only differences allowed in how this scheme's workings vary between counties is that it's up to national governments how much Customs manpower is wasted on it, which is why queue length and officer availability differ so much between exit ports and airports.

Individual traders are free to set whatever limits they want (including having a policy not to waste money on providing the admin for such a pointless scheme) on the purchase size they require before diverting management time onto this scheme.
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Old Aug 1st, 2013, 10:59 AM
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flanneruk: https://www.vatfree.com/en/for-trave...-minimumamount

That seems to contradict what you said. Are you talking about the same thing?
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Old Aug 1st, 2013, 11:00 AM
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It is not at all difficult or time-consuming; have done it in Paris many years ago when alot of purchases plus a beautiful tablecloth were purchased at Galerie Lafayette, they have their very own dept. to do such. Found same tablecloth at Barneys NYC that same year at much much higher price. Know your brands and what you're buying, there are not too many bargains in Europe. Last year in Venice, purchased a handbag, shop gave me paper, tried to process it right afterwards in Venice but did not have copy of my passport with me so had to do so at Venice airport (early morning, no line). Took me about 5 min. or less and got nice VAT refund ($72) credited to credit card utilized in the transaction.
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Old Aug 1st, 2013, 11:11 AM
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I clearly don't spend enough to warrant getting a refund, ;__;
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Old Aug 1st, 2013, 02:06 PM
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Interesting, flanner, we were told 50 GBP was the minimum per store.
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Old Aug 1st, 2013, 02:37 PM
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I just did it in Paris this past weekend. Both of the stores where I bought the items were very helpful and filled out the forms for me. Then when I got to the airport, I found the VAT tax station. The self-help kiosk didn't work, so I rang the little bell and a man came out and scanned my paperwork. He did ask where the items were, and I told him they were in my carry-on luggage. He did not ask me to unpack to show him. He stamped the papers and put them in an envelope and told me where to drop it off and I was done. I have done this once before and I remember it did take a long time to get the refund back on my credit card.
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