Taxes

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Taxes

When leaving the Irish Republic, U.S. and Canadian visitors get a refund of the value-added tax (V.A.T.), which currently accounts for a hefty 23% of the purchase price of many goods and 13.5% of those that fall outside the luxury category. Apart from clothing, most items of interest to visitors, right down to ordinary toilet soap, are rated at 23%. V.A.T. is not refundable on accommodations, car rental, meals, or any other form of personal services received on vacation.

Many crafts outlets and department stores operate a system that enables U.S. and Canadian visitors to collect V.A.T. rebates in the currency of their choice at Dublin or Shannon Airport on departure. Some stores give you the rebate at the register; with others you claim your refund after you've returned home. Refund forms, known as tax-free shopping cheques, must be picked up at the time of purchase, and they must be stamped by customs, and mailed back to the store before you leave for home. It may take months for your refund to be processed. Many merchants work with a service such as Global Blue, which has offices at major ports and airports, and will refund your money immediately in return for a 4% fee. If a store gives you a refund at the register, you'll also be given papers to have stamped by customs; you'll then put the papers in an envelope (also provided by the store) and mail it before you leave. Most major stores deduct V.A.T. at the time of sale if goods are to be shipped overseas; however, there's a shipping charge.

When leaving Northern Ireland, U.S. and Canadian visitors can also get a refund of the 17.5% V.A.T. by the over-the-counter and the direct-export methods. Most larger stores provide these services on request and will handle the paperwork. For the over-the-counter method, you must spend more than 75 in one store. Ask the store for Form V.A.T. 407 (you must have identification—passports are best), to be given to customs when you leave the country. The refund will be forwarded to you in about eight weeks (minus a small service charge) either in the form of a sterling check or as a credit to your charge card. The direct-export method, where the goods are shipped directly to your home, is more cumbersome. V.A.T. Form 407/1/93 must be certified by customs, police, or a notary public when you get home and then sent back to the store, which will refund your money.

When making a purchase, ask for a V.A.T. refund form and find out whether the merchant gives refunds—not all stores do, nor are they required to. Have the form stamped like any customs form by customs officials when you leave the country or, if you're visiting several EU countries, when you leave the European Union. After you're through passport control, take the form to a refund-service counter for an on-the-spot refund (which is usually the quickest and easiest option), or mail it to the address on the form (or the envelope with it) after you arrive home. You receive the total refund stated on the form, but the processing time can be long, especially if you request a credit-card adjustment.

Global Blue is a Europe-wide service with 225,000 affiliated stores and more than 700 refund counters at major airports and border crossings. Its refund form is the most common across the European continent. The service issues refunds in the form of cash, check, or credit-card adjustment.

V.A.T. Refunds

Global Blue (866/706–6090 in U.S. . www.global-blue.com.)

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