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What VAT Tax about, Can someone explain?

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What VAT Tax about, Can someone explain?

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Old Jun 5th, 1998, 10:51 PM
  #1  
Jamie Powell
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What VAT Tax about, Can someone explain?

I just read a message about high taxes in Germany but being able to get a VAT voucher. I have no idea what this is about and if I need it. ie purchasing gifts, renting a car, train fares, tours, dining etc.

Any info will be appreciated.

PS: visit our new web page www.caring-hands.com for more travel and other info.
 
Old Jun 6th, 1998, 05:22 AM
  #2  
wes fowler
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VAT (Value added tax) is just that - a tax that's added to a product through its stages of manufacture. It's the monster of all hidden taxes and can constitute well over 20%25 of the cost of the taxed item depending upon the country involved.
The tourist can recover the tax under certain circumstances by completing a form listing purchases of goods and supporting the list with copies of receipts. Most commonly, the form is turned in at customs at the departure point and reimbursement is received six to eight weeks later. VAT is not recoverable for services, i. e., car rentals, hotels, restaurants. In some cases, you must make purchases at one location at sufficient dollar value to qualify for a VAT refund. I'm taking up too much space here. If you want more specifics, Email me direct.
 
Old Jun 7th, 1998, 04:53 PM
  #3  
Michele
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Believe me Wes, you are not taking up too much space. This is what this forum is all about. My family and I will be traveling soon to Switzerland and Italy. Please correct me if I am mistaken: I should save the receipts for anything that I purchase as a gift and the receipts from our hotels. Before boarding the plane back to the US at Rome's Fiumicino I locate the "VAT desk" (didn't know what else to call it) fill out a form and I should receive a refund several weeks later.
Do I have to inquire every time I make a purchase if the price includes VAT? Will I have to apply for the refund before leaving Switzerland or may I apply for a total refund at Fiumicino?
I feel somewhat stupid asking the questions but VAT was not in existence when I lived over there some 20 odd years ago. Thanks in advance for your assistance; I'm sure others will benefit from it as well.
 
Old Jun 7th, 1998, 05:55 PM
  #4  
wes fowler
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Michelle: Rest assured anything you purchase in any shop either in Switzerland or Italy will include VAT, about 7%25 in Switzerland, 19%25 in Italy the last time we were there. You needed ask about the tax, but do ask for the tax form that you'll have to turn in at the "VAT" desk in Switzerland for Swiss purchases and in Italy for your Italian purchases. The tax applies to hotels and car rentals and other services as well but is not recoverable so there's no need to keep such receipts for tax purposes.
You can only recover the VAT for goods purchased.
In some shops you must make a significant monetary purchase in order to get the shopkeeper tp provide you with VAT refund documentation. Check first before buying.
 
Old Jun 8th, 1998, 04:02 AM
  #5  
Monica
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We returned from Italy on the 31st of May and went to the VAT booth to have our receipts for our jewelery purchases stamped so we could get the VAT tax back. In Italy, this is good for purchases over 300,000 lira within one store. Of course you can claim the VAT tax for any store as long as the total is over the 300,000 lira. Be warned: when we left Linate airport in Milan (changed planes in Paris) the man at the desk refused to take our receipt and he gave us no valid reason. At least we were able to do so in Paris, our exit point from Europe. However, in Paris, the line was so long that we were afraid that we would miss our plane. We didn't, but don't know if we'll do this again, unless we have lots of time in between our flights.
 
Old Jun 8th, 1998, 07:49 AM
  #6  
roger
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We found out that you have to show the goods purchased as well as the the VAT form. This was in England. However, we found out that a noterized signature was accepted when we mailed the form. We just used a notary back here in the states. The reason we could not show the goods purchased was due to to the fact that we had packed and checked our bags.
 
Old Jun 18th, 1998, 03:19 AM
  #7  
beverly
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Just returned from Scotland. Shops post a sticker in the window, VAT Tax Shop. They, the shopkeeper, has to fill out a form, listing all of your purchases, and attach the receipt. When you get back to your hotel, you fill out a portion of the form with your info, name, address, etc. At the airport, go to the VAT desk, with all forms and receipts filled out. You are supposed to have your purchases in your possesion, not checked, in case you are asked for proof. Each form goes into a envelope, and is mailed right there at the VAT desk, or nearby. You can request your money back, either charged to your credit card, or a check in your country's currency. We found it very easy this time in Scotland, were not asked to show any purchases. However, when we did this in Germany a few years ago, we found that they made it very inconvenient for you to do this, and still make your flight! Hope this info. helps.
 
Old Jun 18th, 1998, 12:50 PM
  #8  
ilisa
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In Copenhagen, it wasn't necessary to show the purchases. Also, we received our refund in US $ at the airport before we even got on the plane! We actually considered not bothering with the refund, but are glad we did since we got back a very nice amount. <BR>
 
Old Jun 19th, 1998, 04:43 PM
  #9  
Ginny Reeves
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In Germany, we were able to have the VAT credited to us as the time of purchase and have the items sent directly home. Are you able to do this in ohter counties?
 
Old Jun 25th, 1998, 07:53 AM
  #10  
Asif
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There's a lot of good info here, but I feel like I should emphasize one point. If you are visiting the schengen states ( germany, austria, france, italy, luxembourg, belgium or netherlands), try to charge all your purchases on a credit card. This way, when you submit your receipts for refund, they can refund the money directly to your card. I'm not sure if this process exists in other european countries. <BR>
 

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