Can someone please tell me about the Value Added Tax refund you can apply for? I was told by someone today that she went to Europe & purchased a multitude of items at a Paris department store & was given "paperwork" that she then mailed in after returning to the USA. She said in 6 weeks she received her refund of the VAT. Does this sound right? I've never heard anything about this before. Can someone enlighten me? Thank you!

Yes it is. Any non-EU passport holder, travelling to a non-EU country as next stop at border, is entitled to VAT refunds on items purchased in that country. <BR>There are some snags though: <BR>1. Shop must be participating in scheme (usually designated by TAX FREE sign in doorway). <BR>2. You must request tax refund paperwork at purchase. <BR>3. You must have passport present when purchasing. <BR>4. You must have paperwork at the border plus items purchased (i.e. they cannot be checked in at airports) and go to a Customs office in the port. The officer may ask to see the items. They must not have been used. <BR>5. There is a minimum purchase each time, because of an administrative fee for paperwork. <BR>6. You don't get all the VAT back. A good part is kept as charges. <BR>7. You can take the papers to a VAT refund office in the port, and they will credit your credit card account. <BR>Sounds like it was invented by the Italians. I never bother.

Simon: <BR> <BR>Thanks for the detailed info! It doesn't sound so great now. I guess for the trivial items I'd purchase it just is not worth the hassle. The women who told me about this just raved & raved at what a deal it was.... <BR> <BR>Debra

My wife and I have used VAT for thousands of dollars worth of tax money back. For larger purchases, stores have offered to sell us the item at the base price, we would then sign the VAT paperwork and they would worry about squaring it with the government. So in that case we paid no tax and the gov't didn't have a tax to return, the store sold its goods, and everyone went away happy. <BR>The more usual situation has simply required keeping the receipts, going to the tax office at the airport, itemizing the stuff, and getting the rebate or whatever you call it. We don't bother if it's a trivial amount, just like we don't clip coupons in the States to save 10 cents on Ivory. <BR>Finally, there is the "unusual" case of what Simon called referred to as "participating in [the] scheme". I think what he really means is that some merchants just don't want to bother. If you're not in an area where significant clientele are tourists, then the merchants typically don't want the hassle, never heard of it, etc. <BR>We bought a table 200 miles south of Paris and explained the de-tax process to the merchant. He had heard of it, but had never done such a transaction. We were insisting he handle the paperwork as in the first case I mentioned. But he agreed. A few days later the item was delivered to our home in France (we were in the process of moving back to the States) and the delivery guy said he was to collect full payment including the sales tax. We told him what he could do with his table, he called the store, we got the table at no sales tax. So in that sense, every merchant "particpates". It's not like they have to sign up for the program or anything. In the latter case, the merchant thought he had leverage because we were in the process of packing out for the States so he thought we'd cave and pay. We had leverage because we were willing to walk away from the deal. We won. Nice table! <BR>My advice: figure out how much money is worth getting to the airport an hour or so early, then standing in line at the airport, and filling out some paperwork. We had just gotten married before we went to France to live. We didn't have a pot to pee in as they say. We bought over a hundred thousand dollars worth of furnishings while we were there so we had a lot at stake. Overall, we found the process to be very simple, the merchants to be very cooperative (it was in their interest to get the sale), and the money to be very nice!

Debra, A couple of other comments. I agree with everything Serge said, but in our case we never were asked to show anything because we were moving a relatively vast amount of goods (a whole ocean container worth) and, of course, we could not carry our furniture on our back to the customs dude at the aerogare. As I recall,the was an import/export agent in the town where we lived who hooked up with the movers to get all the paperwork. Well, all that is more than you want to know, particularly if you're only bringing back a set of copper pots.

Dear Joel: <BR> <BR>I agree with you that when you are dealing with large amounts, you should do this. It's with the small amounts one usually buys whilst on holiday that it really isn't worth the hassle. <BR> <BR>By the way, when exporting goods as freight (not as accompanying luggage) it's another process all together. The VAT isn't charged at all. But what we are discussing here is the VAT collected at shops for gifts you would take home with you. Quite a different story altogether. <BR> <BR>Like I said, I don't bother with this anymore. Not after all the hassle, all I got back was less than 20Euros. Phah!

oops, I missed out on that point you made Joel about participating shops. I stand by what I said ... the shops must be 'enrolled' simply because they need to fill in some forms and hand these to you to present for your refund. A 'non-enrolled' shop would not have these available (and would probably not be recognised by the organisations running the administration of these schemes). Shops in the scheme have a white, blue and black sign saying TAX REFUNDS in their doorway. <BR>The supplier you talked about would have been enrolled (though probably the staff who served you had no idea of this, and had to check with their administration or head office). Most large shops are. Also all shops dealing with tourists. <BR> <BR>Regards, <BR> <BR>SS

I can confirm that only shops enrolled in the scheme can arrange these refunds. Just click on this link to go to the UK Open Governement Site that makes a clear reference to this: <BR>http://www.ukonline.gov.uk/online/uk...ices/704-2.htm <BR> <BR>I guess I've been proven right, Joel ?

Anyone needing more information on this scheme should check out the FAQ on the subject. Just copy and paste the link below to your browser and click go: <BR> <BR>http://www.hmce.gov.uk/notices/704-1.htm

One should note that just at the amount of the Value Added Tax (VAT, Mwt, IVA, etc.) is not the same throughout European countries, the rules and methods for VAT refund for visitors differ as well between countries. <BR> <BR>Ed

Some of the previous comments have made the VAT refund process sound more complicated than it really is. I've never found any more difficult or complex than filling out a form at the store, showing my passport (or a photocopy of it), stopping at the proper desk at the airport with the form and mailing the form in a prepaid envelope at the airport before return home. Then, x weeks later, i get a credit on my credit card bill.

Deb, you have gotten a lot of commentary here which to me is confusing. <BR> <BR>Yes, you can get the VAT back and it is worth it depending on what you buy. For example in the UK, the VAT is 17.5 percent and already included in the price ticketed on the item so you may not be aware how much VAT you are paying. <BR> <BR>Store do list a sign of participation, if not, ask. The store will complete a form and attach your receipt. Most have minimum purchase amounts and it is the store that attaches a service charge to the processing. <BR> <BR>You need to complete the form, adding how you want to receive the refund - check of a credit to your charge card. <BR> <BR>When you leave the EU, you need to have the items with you for the customs inspector if he asks to see it. They will stamp the form and then you drop it in a post box, which in airports are usually located right in the same area as the customs guys. <BR> <BR>It is not a difficult process and may be worth it. My experience has been widely varied as to when I receive my credit - one month up to seven months. <BR> <BR>EU passport carriers can get VAT back if they are taking goods out of the EU.

What no one has mentioned is that you must spend a fairly substantial amount in one store at one time to get the refund. The amount varies slightly by place, but is in the $150-200 range. So if by "trivial amounts," you mean under $100 for single purchases, you're note eligible for the refund anyway.

Yes Diane, I was inexact when I stated 'EU passport holder'. The correct term is 'EU resident'. As you rightly pointed out, sometimes the two are not the same. <BR> <BR>But this is my last posting on this isuue. If anyone wants correct official information, they should read the FAQ at the UK govenment site (though some small differences may exist between different EU states) at: <BR> <BR>http://www.hmce.gov.uk/notices/704-1.htm <BR> <BR>Regards Everyone.

Is it necessary to apply for the VAT refund at the border of each country as you leave or do you apply at the airport from which you leave to return to the US? For example, we are going to travel in Italy, but will enter and leave the EU through Paris. Where do we apply for the refund? <BR> <BR>Thanks for your response.

I used the VAT refund in Paris. Did all my shopping at Galeries Lafayette in one day so I could spend enough francs and everything would qualify for the refund. I just took the receipts to the desk at the store and they gave me the papers to file at the airport. No one told me, however, that the line at the airport could be one hour long--I was fortunate that my plane was delayed, but I had not worked an extra hour into my return schedule. Just allow ample time if you want to file for your VAT refund at Charles de Gaulle! <BR> <BR>By the way, my $27.00 refund appeared on my next Visa statement! <BR> <BR> <BR>Kathryn

Hi Debra: <BR>I have never had a problem getting VAT back. With every purchase I make I ask for a refund form. I have never been refused in any place I've shopped. I do not wait in line at the airport. You can either have customs stamp the forms at the airport and mail them from there. (you may need to have the items with you, I have not had to show any of my purchases) I have also come home with all my forms, had a notary public stamp the forms and mail them postage free from the US. The refund usually shows up in the next billing cycle of your credit card. Never a problem, easy to use and usually worth a few dollars to you!

Agree with Howard, <BR> <BR>The process is not all that difficult...just takes a little effort and a little time. <BR> <BR>And, I don't know if you people are made out of money, but I'm only a few years out of college. After spending over $2000 on a trip to Europe (well worth it) getting the "trivial" amount of $200 back on VAT was very nice. Why lose that much when you don't have to?

betsy, you claim the VAT as you leave the EU (customs verifies you are taking the goods OUT of the EU, then you are entitled to the refund). Keep all your tax paperwork, receipts, etc. together and organized so you can speed up the process. <BR> <BR>I don't know what the procedure is for non-EU countries.

Perhaps things have changed, but two years ago we vacationed in Germany, bought lots of stuff for the kids, made sure we spent at least the minimal amount to qualify for the refund at each store and asked for VAT refund paperwork at every chance we got. When we flew home, we had stupidly packed the items in our checked baggage, but when we connected in Amsterdam (a different country mind you), we went to the VAT people, showed the paperwork and they gave us a check. We cashed that at a bank in the airport and used the refund to load up on Gouda. Almost as easy as getting a refund at the Canadian border.