Can someone advise me on the VAT refund? I have read thru some thread on TA but still confuse. This is the scenario:
I%26#39;m going to buy some handbags from Louis Vuitton boutique. What is the procedure to do the VAT refund, can someone advise me out step-by-step?
also how much is the VAT refund? some say 19.6% some say 12%??
what is the advantage or disadvantage of refund thru credit card and cash?
I heard some say refund at airport?
Is there a limit of quatity per person or a maximum sum that one can spend?
thank you for your advise
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See www.ricksteves.com/plan/tips/vat.htm
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Here is a useful note about VAT refund in France :
parisflatrent.com/travel-tips/…taxes
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The real question is how much of the refund will you ultimately receive. Most boutiques use third parties to process their paperwork. Part of the refund goes to the seller (their handling fees), part to the processor (if one is used), and the rest to you. This is why the VAT percentages you receive vary.
I have never used the airport refund but one assumes the extra time involved may not appeal to everyone.
The only maximum sum will be the amount of duty free your home country will allow you to bring back.
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More and more vendors/merchants (including Louis Vuitton) are using Global Refund for VAT reimbursements.
You can find the details at www.globalrefund.com
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The full VAT is 19.6% on most concumer goods. In order to qualify for a VAT refund, one must spend at least 175,01€, in the same store, on the same day. Given a stop at Louis Vuitton, that shouldn%26#39;t be the least bit difficuly. As noted above, Louis Vuitton offers an immediate, in-store, %26#39;..de taxe sales..%26#39; scheme, through a third-party agency, which allows the customer to apply for and receive a partial VAT refund in the amount of 12%. The difference between the immediate 12% %26#39;de taxe%26#39; VAT refund and 19.6% charged in VAT is the third-party agency%26#39;s %26#39;..fee..%26#39; for the %26#39;..convenience..%26#39; of processing the refund transaction.
In order to receive the full, 19.6% VATrefund--you would have to %26#39;..jump-through-the-hoops..%26#39; of the VAT refund process when you departed France, by having your VAT refund form verified by a French Customs officer and mailed to the appropriate government agency. The %26#39;catch%26#39; to this is the Customs verification process. Technically, you may have to prove that you have the merchandise in your possession when you depart France. Since most departures are by air, the merchandise would probably have to be in your carry-on baggage. If it was in your already checked-baggage, Customs inspector could simply refuse to verify your VAT refund claim.
It%26#39;s worth noting that if you are visiting other EEU countries during the course of your travel, that each individual country has its own VAT rate and refund requirements. France%26#39;s VAT refund requirements are perhaps the most--or worst--of the lot.
Though there%26#39;s seldom difficulty in running up to the 175€ minimum at a Louis Vuitton shop....if shopping is a high priority on your travel agenda, then it often %26#39;..pays..%26#39; to have a plan. As example: if you spend 100€ in one shop, 150€ in another, 75€ in a third, 125€ in still another and 50€ in another (even on the same day) you will have spent 500€--well in excess of the 175€ minimum requirement---but you would be entitled to receive exactly ZERO in VAT refunds...since the purchases would%26#39;ve been made in different shops.
With this in mind, it might be a good idea to try to %26#39;..concentrate..%26#39; your shopping to one of the large %26#39;grand magazin%26#39;--Galeries Lafayette, Printemp, Le Bon Marché--which offer a broad variety of merchandise, offer immediate %26#39;de taxe sales%26#39; schemes...and offer immediate 10% refund schemes (individual stores/individual plans) on most consumer goods purchases, to non-EEU passport holders. In many instances, the 10% discount offsets the difference between partial and full VAT refund amounts.
Though there is much to be said for the psychologic advantage of strolling into the Louis Vuitton shop on Champs Élysées and buying that purse (%26#39;..Oh, this ??...I picked it up on the Champs Élysées the last time I was in Paris...%26quot;)...there are Louis Vuitton boutiques at both Printemps and Le Bon Marché...so that you can also receive a VAT refund for the inexpensive scarf that you buy for your least-favorite sister-in-law (%26#39;..the b__ch will never know..) and the tie you buy for uncle Bob (%26#39;..he%26#39;ll just spill coffee all over it the first time he wears it..%26#39;) also qualify for VAT refund.
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Another thought. If you do not spend 175.01 euro in one day at the same store, and you are with someone shopping, and that person buys things, combine the total of your purchases together and if you go over the 175.01 you are entitled to the refund. Only problem is you have to use a little math to see who gets how much out of the refund. It%26#39;s better than nothing.
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How about if I spend 200 euros in LV and 50 euros in another store on the same day, do I still get the refund for the 50 euros?
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It is a %26#39;per store%26#39; basis for the refund, not a total for the day%26#39;s shopping. You will need to spend 175.01 Euro in each and every store to receive the refund.
Hope this helps,
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Be sure to have your purchases with you in your carry-on! 2 weeks ago when I could not produce my purchase (which was in checked luggage) they refused to stamp my forms. Did tell me that I could go to the French embassy in the US in the next 90 days with my merchandise and they%26#39;d be happy to stamp it for me there......Glad I wasn%26#39;t counting on a huge refund.
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The process isn%26#39;t rocket science, but it takes a little time. Get to the last EU airport of your trip at least one hour earlier than you normally would. Take all your luggage with you to the VAT desk. Show the VAT officers that you have all your purchases with you, UNUSED, BTW, have your forms stamped, and then pack the purchases in the bag(s) you%26#39;re going to check. Schlep all the luggage back to the check in desk, and proceed as usual.
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