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Have you ever heard of the VAT tax and wondered what it is? Several friends who are planning trips to Europe this spring and summer asked me about it and I thought the topic would make a good post. I hope this information will be useful and will give you confidence to claim your refunds if you are entitled to them. Rick Steves is right – Tourists leave millions of dollars in Europe every year by not claiming their refunds.
A value added tax or VAT is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the “value added” to a product, material or service. The “value added” to a product by a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs. A VAT is like a sales tax in that ultimately only the end consumer is taxed. – Wikipedia
Rick Steves writes about it this way:
” Every year, tourists visiting Europe leave behind millions of dollars of refundable sales taxes. For some, the headache of collecting the refund is not worth the few dollars at stake. But if you do any serious shopping, it’s hard cash — free and fairly easy to claim.
You just have to bring your passport along on your shopping trip, get the necessary documents from the retailer, and track down the right folks at the airport, port, or border when you leave. (This will give you something to do while you’re hanging around waiting for your flight or ferry.)
The standard European Union Value-Added Tax ranges from 15 to 25 percent per country, averaging about 20 percent overall. Rates change; you can double-check with merchants when you’re there.
Unlike business travelers, tourists aren’t entitled to refunds on the tax they spend on hotels and meals. Still, you can get back most of the tax you paid on merchandise such as clothes, cuckoos, and crystal.
To get any refund, your purchase has to be above a certain amount — ranging from about $30 to several hundred dollars, depending on the country (except in Ireland, which has no minimum). Typically, you must ring up the minimum at a single retailer — you can’t add up your purchases from various shops to reach the required amount — so if you’re doing a lot of shopping, you’ll benefit from finding one spot where you can buy big. If you’ll be in Europe for a long time, shop near the end of your trip. You need to collect your refund within three months of your purchase.”
European Union Member States
If you would like to know more about the European Union you can find the information here.
I have received VAT tax refunds in Denmark, Germany, Italy and France and the procedure is basically the same in each country. If you plan to do any serious shopping the amount necessary to qualify for the tax is easy to reach. If you are thinking about cookware in Paris I recommend E. Dehillerin because they have the best of everything at the most reasonable prices we found anywhere. For example, if you love copper cookware and find a beautiful saute or sauce pan with the price tag of 175€ the actual price after the 19.6% refund is 140.70€, a big difference in my book.
The VAT tax can really add up on big ticket items.
The VAT Tax in France is 19.6% and purchases of over 175€ are eligible for reimbursement of the tax. This minimum must be met with each retailer – you can’t add up your purchases from various shops. That is one reason selecting a large retailer like E. Dehillerin can be a good choice. It’s very easy to reach the €175 mark and an almost 20% refund is significant. For a serious shopper, a family, or even several friends, pooling your purchases usually won’t make this a difficult limit to reach.
Getting a refund is easy (or more accurately worth the effort) if you just follow a few steps and make sure you have the correct paperwork. Ask retailers if they participate in the VAT program. Be sure to have your passport with you when you make your purchases. Ask the merchant to fill out the necessary paperwork and be sure it is completed BEFORE you leave the store. Attach your receipt to the form. We purchased cookware at E. Dehillerin and they filled out all the paperwork and gave us a stamped return envelope so we could mail it from the airport, so that part of the process was easy.
When you arrive at the airport go to the Customs Desk BEFORE (very, very, very important) checking in (look for the Detaxe sign) . They will want to see your passport, the paperwork from the merchant, your receipt and the purchased goods. They will stamp your papers and you can mail them right there at the airport. We had our refunds on our first credit card statement after the trip.
Make sure you allow enough time (at least an additional hour before the time required for checking in at the airport) for Customs. At CDG and Orly airports, you may find long lines of other travelers at the customs counter, especially during the tourist season. (Pray that you are not in line behind a tour group). We had no problems with lines and got through the process very quickly.
A bit of a Catch 22 – You also want to make sure you don’t arrive too early. Customs at CDG will not process a claim more than 3 hours prior to your flight. Your flight must appear on the Departure board for customs to endorse your forms.
If all this sounds complicated and time consuming it really isn’t. There are just a few simple steps that you must take and it’s very important that these are done right (or forget it!!!!) If you don’t get it right the first time just consider it a learning experience and you will know better next time. You won’t be out anything except a little time and you may have a nice refund on your next credit card statement.
Very interesting! I never knew you could claim it.. never claimed it back:),or 🙁
We have GST and PST here..double tax..
My freiend is in paris as we speak..and is going to peek at Dhellerin:)
Monique recently posted..Soul Food #124~
Thanks, Cathy, for this useful post. I never realized that tax could be refunded. I will share this with my friends who travel to Europe more often than I do. xo
Barbara F. recently posted..Happy Chinese New Year
Great post for those of you outside if Europe……..Excellent Cathy!
Karen recently posted..Fish is the Dish, Fish Fanatics and How to Cook Mussels without Fear!
It’s well-worth the little bit of effort, and could easily pay for another pot, another bag, another sweater, another great meal…..
Bev would love to do a blog post titled Paris Shopping.
Larry recently posted..Saturday Humor
I would love to have the opportunity to use this information one day!
Susan recently posted..Lemon Angel Wings
We have not been to Europe in quite a while; I had not idea you could claim this tax; amazing what you can learn by blogging.
Rita
What an onformative post Cathy. You’ve explained it very well – one of the biggest things people miss when traveling in Europe. Are you ready to head back again for some more copperware?
Bon week-end!
Mimi
bonjourromance recently posted..Luxury Car – French Style
Thanks for this Cathy. Very informative as I had no idea.
Lea Ann recently posted..Pickled Beets
Good description of VAT Cathy. I don’t typically make a large enough purchase at one place, but I have claimed it on occasion.
CiaochowLinda recently posted..Baked Apples
Very good post, Cathy. But I am wondering, does France still have a 33% luxury tax added on the any item they consider a luxury item? I have to check.
Jamie recently posted..CAULIFLOWER AND POTATO GRATIN
I’m bookmarking this Cathy for my next trip. I knew about the VAT tax, but I don’t normally buy anything very expensive. But you never know……..
Sam
Sam @ My Carolina Kitchen recently posted..Dreaming of the South of France and Seafood Stew
very interesting. i love your French posts. have you ever read The Paris Wife? it’s been a really good book and i keep thinking of you because i know you’re such a fan of Paris 🙂
teresa recently posted..Thai Coconut Shrimp
I did not know about this, Cathy. Thanks for the info.
~Judy
JG recently posted..Slow Cooker Beef Stew
Be good to get a break on those fancy copper pots.
Mrs. Tuna recently posted..The Sisterhood of the Traveling Office
Great info, Cathy! On my last trip to Italy, I missed the customs desk…phooey! But I plan to make it to E. Dehillerin in June. I think I might need to pack an empty suitcase 😉 And I will be sure to stop at the Custom’s desk before checking in!
Liz recently posted..Sticky Buns~
It won’t affect me. I’m a home body. Won’t be going any where.
Ramona recently posted..My Cross
Great tips about the VAT. Sometimes I don’t bother if the refund will be small and the custom lines are long. But with the dollar not doing well against the euro, every little bit that you can get back helps with purchases.
Karen (Back Road Journal) recently posted..Moroccan Chicken Stew
Cathy, Thank you, Thank you. I am bookmarking all of this info. for our trip in June. You are the best. Penny
Penny recently posted..Helpful Hints from My Cottage Kitchen 2
great tips for travelers
rebecca recently posted..Baked Egg with Spinach and Tomato
Excellent article and very good to know, I will pass this on to some friends that travel to
Europe often and keep it in mind when I do 🙂
Magic of Spice recently posted..Food of the week – Parsley Root
I have known of this tax, but not used it as my purchases have been small. I probably could have used it the last trip to France, but not sure as large purchases were at street markets.
Marilyn recently posted..What is in your Cup?
I am bookmarking this too Cathy. This is very helpful information. Thank you so much.
Penny recently posted.."Retro" Peas Francais
very informative post….I think we need to check into our refunds…We mailed them from the airport on 1/3 and still have not seen the refunds back on our credit cards…the Boss is threatening to storm the Louis Vuitton store here in Atlanta and demand his money….someone owes us over $1,000. !!!
Sue in Atlanta recently posted..THE ULTIMATE COMPLIMENT…….
Hi, We mailed our envelop at the Charles De Gaulle airport in September 2012 and still, as of today; 06/15/2013, haven’t received the credit on my card!
What do you advise?
How long does it take usually?
Thanks,
David
Hi David –
I mailed my forms at the airport on May 11 (five weeks ago) and I already have the credit on my visa statement. Do you still have copies of your paperwork? Don’t know of anything to do other than write to the store and ask them to check their records. Enclose copies of your VAT forms and receipts. French paperwork can be impossible. Good luck.
Cathy
Hi,
I crossed your link when I’m planing my upcoming trip on June. I have some questions, maybe you can help me with your experiences. My flight back is from Frankfurt. If I’m planing to buy some leather goods in Paris, will I only able to claim my VAT in Frankfurt airport? Is it true the VAT may vary and the biggest one is in France? Thank you so much for reading and I appreciate your sharing.
Hi Julie – Sorry to be slow in getting back to you. I just returned home from France a few days ago. If you purchase items in Paris you must claim your VAT tax refund in France. There is a tax refund office at CDG airport. Go there first before you check your bags. You need paperwork from the store where you purchased your goods (must be at least 175 euros worth in one store in one visit). Be prepared to stand in a long line and have your paperwork ready. You can mail your stamped forms in mailboxes right there at the airport.
Good luck.
Cathy