VAT Tax
 

Can anyone explain to a young and yet-to-be-worldly American what exactly the VAT tax will mean to me when I travel to Dublin this September?
Thanks so much!

Consider it to be a national sales tax. Above a certain amount it is refundable for items that are taken out of the country.

It will be added to anything you purchase in a store and added to your hotel bill. I believe the charge is 21% in Ireland.

It will make your eyes bulge from sticker shock.

No - it won't be added to everything you buy. The VAT is included in the shelf price. So if something is priced 10€ - that is what you pay. The VAT is included in the price. Whereas in the States if something says $10, most places you will pay between $10.05 and $10.15.

Our local Woollen Mill here in Ireland gives certificates to those who buy here; they can claim the tax back at the airport...

In shops yes it is added and already in the price, but watch mail order firms and make sure of their policy.....

There is no VAT on food items.

When you buy souvenirs, ask for the tax forms. Fill them out and turn them in at the airport as you're leaving. I had twenty-some dollars refunded to my cc after my trip last month.

In some shops in Ireland, they may offer to ring up a credit card transaction in dollars (dynamic currency conversion or DCC) and deduct the VAT on the spot. Beware, because you could be getting a very unfavorable exchange rate and still be hit with the foreign transaction fee on your credit card bill.

Some shops, like Limerick City's: Irish Handicrafts in Arthur's Quay mall will give you an on the spot rebate / refund of VAT they are required to charge you. Otherwise, merchants are supposed to provide you with a VAT Refund form that you take to a TaxBack counter at the airport.

There's no VAT on Children's clothing.

You have to purchase a certain amount, about 150 Euro in Europe, at the same store on the same day to get a refund of tax. So it pays to do all your shopping in one place if possible.

A retailer is not entitled to give a VAT rebate directly to a customer in Ireland, either as cashback or by reducing the ticket price by the amount of VAT.

VAT is not due on exports outside the EU, so if the vendor ships the goods to a place outside the EU, then the VAT can be removed (and a shipping charge substituted). I would read NEDSIRELAND's report in conjunction with kayd's caution: a DCC transaction can go through the books as a direct export.

VAT is sometimes not included in hotel (and perhaps other) prices that are advertised outside of europe. in these cases, VAT will be added to your bill - going against normal business practices in europe. there is no reason for this as you cannot claim VAT back on hotels anyway. it's just a way to make the hotel price look less expensive to people who are used to the 'plus tax' system anyway.

ekscrunchy, merchants can and will give you forms on any merchandise purchase in Ireland. Some of the ones I turned in last month were for fairly small purchases, under €20. But it adds up. As I said, my total refund was over $20.

I had no idea that was the case in Ireland! Thanks for clarifying.

Thanks so much for all your help.

One more question - in the case of the VAT on the hotel, if I have booked with a travel agent and I am paid through her, does that mean my VAT tax for the hotel is already paid? Or will we have to pay it separately? Sorry if that is a dumb question.

Thanks!

That depends on whether the hotel quotes its rates w/ or w/o VAT.

A trader (such as a hotelier) cannot split the charge for goods or services and the VAT and require one person (such as a travel agent) pay the accommodation charges and another person (you) to pay the VAT.

<<Whereas in the States if something says $10, most places you will pay between $10.05 and $10.15.>>

I wish that was the way it worked! The additional .05-.15 is per $1.

Oh - oops! Of course. I started to use $1 but then decided $10 would be a better example and forgot to increase the tax bit

$10.50 - $11.50

VAT on hotels are non refundable, only items you can take out of a country.
You will sometimes have to show it to the customs as prrof you are taking it out.