I'm going to Germany / Austria / Prague for the first time and am confused with the VAT tax. What is it and what should I be aware of when shopping in Europe? Do I have to pay VAT on all items I purchase or just certain things?

Thanks in advance for your help!

VAT (or value added tax) is a tax which, so far as most visitors are concerned, is virtually identical to most other countries' sales tax, BUT WITH TWO BIG DIFFERENCES:

1. It is a criminal offence under virtually all circumstances in EU and applicant countries to display a price to consumers that doesn't already include VAT. So, unlike the wilful misleading of customers that the US so widely tolerates, the price you see is the price you pay. You aren't going to have arbitrarily invented percentages added to your bill at the checkout.

2. Non-residents in the EU may, if they spend enough on merchandise (not services) that they take out of the EU, get the VAT element refunded. THis board swarms with explanations of the mechanics of this, the details of which vary from country to country.

VAT is applied to most things, though there are occasional, generally local exceptions (like food and children's clothing in Britain).

VAT is Value-Added Tax and, as far as I know, it is charged on almost everything.

You can get a VAT refund if you spend above a certain amount in a single store -- and the store is prepared to do the necessary paperwork. The amount varies from country to country.

As you leave, you have to present the papers AND whatever you bought at a special office in the airport. The VAT should then be sent to you or credited to your account.

Personally, I have never bothered to claim a VAT refund. The VAT is generally included in the price given for the item, so to me it's just a part of the price.

While, I haven't shopped in Germany/Austria/Prague, I have gotten VAT refunds from purchases made in Paris several times. One thing to consider if shopping is a planned part of your travels is to find out the purchase amounts required to have the retailer fill out the paperwork for you. My sister and I generally do a "pre-shop" to determine what we are interested in getting and then bundle the purchases so the paperwork is done by the stores. For us, it becomes somewhat of a challenge .

In Germany we made some purchases and did the VAT exchange at the airport. This was the first time I have bothered with it, but got back 60 Euro so I'd say it was worth it. I'm kicking myself now that I have not taken the time all those times before.

FTAOD, you don't get back VAT on anything you consumed whilst here

The prodcedure for obtaining the refund as you leave the EU is explained the website of the company that processes refund claims in most nations that have VAT:

http://www.globalrefund.com/

Think of it as sales tax - - and by taking your purchase home with you, you are not required to pay it (i.e., you get it back) similar to not being charged sales tax for an interstate mail order purchase.

You are the postman.

Best wishes,

Rex

FWIW, it's extremely easy to get a VAT refund in Germany, and there rarely is a limit on how little you spend at a store (vs eg Italy). Relatives of mine have gotten VAT refunds on purchases of as little as 25EUR (yeah, I think they're cheapskates.... but anyway). This may be due to the fact that Germany has had a VAT refund scheme in place for a long time, way before that EU wide "Euro-Tax-Free" shopping came into being. Also, even though it says "no cash refund in the store" on those checks they give you, many stores will actually give you a refund (after customs has stamped the forms) of the full VAT, not just the part that you'd normally get back at the airport.

Hi I'm totally new here so pls bear wif my seemingly stupid questions.

I'll be travelling from Netherlands and will be taking a 4 day trip to the neighbouring towns in Germany near to Netherlands. Probably Mainz, Heideburg, Cologne... I'll then return to Netherlands for my return flight home.

Thus, if I buy anything from Germany, would I be able to claim VAT other than from the airport? The purchases will most probably be from different shops. Will I still be eligible to claim VAT?

Take a look into
www.globalrefund.com
for further information & details (under FAQ).

In general you can claim VAT for all goods, which you take into the export.

You have several possibilties to get the refund:

Global Refund offers you several possibillities of receiving your VAT-refund:


Cash at a nearby Global Refund Office
Cash refund when you return home
Direct crediting of a chosen credit card or bank account (please state your credit card/bank details)
Bank cheque sent to a chosen address

European politicians require the VAT to be included in the final price NOT as a convenience to consumers, but to hide from them how much they are being pounded by taxes.

Sales taxes are separated in the USA, but are supposed to be clearly shown on the receipt so the consumer can see how much sales tax they are paying. I'd rather clearly know how much is going to the vendor and how much to the state or city.

> but are supposed to be clearly shown on the receipt.
Same thing in Europe, so your argument doesnt really count, does it?

Yes logos, exactly right. VAT IS shown as a separate figure on the receipt, it's just included on the price ticket so you don't get counter shock.