 Durant
& Cheryl Imboden'sEurope for Visitors europeforvisitors.com |
|||||||||
|
|||||||||
| ||||||||||||
|
Tax-Free Shopping in Europe(VAT Refunds)
ABOVE: Loading up on French sailor outfits for the kids? Put some of those francs back in your pocket with the European tax-free shopping scheme. In Europe, most prices include a value-added tax or VAT that can be as high as 25 percent. This is like a sales tax, except that it's built into the price you pay instead of being added at the cash register. If you're a tourist from another country, you may be able to claim a VAT refund. You can do this in several ways: 1. Use the store's refund affiliate, which can be identified by a decal such as "Tax Free Shopping" or "Premier Tax Free" in the store window. This is the easiest and most reliable method by far: The store gives you a "tax-free shopping cheque" that you present to customs when you leave the country or the European Union. You then take your stamped cheques to the refund service's airport desk or border kiosk for an immediate refund, drop them in a special box, or mail them to the refund service's nearest office after you get home. You can have refunds credited to your Visa, MasterCard, or other credit card in your own currency. Global Refund is the biggest VAT refund service; it represents more than 230,000 merchants in 35 countries. (See page 3 for a link to the Global Refund Web site.) Another firm, Premier Tax Free, represents more than 70,000 merchants in 17 countries. Important: You don't decide what service to use. The retailer does, so you'll need to process each "tax-free shopping cheque" with the company indicated on the cheque (usually Global Refund). 2. Get a refund directly from the shop where you make your purchase. Request a VAT refund form, have it stamped by a customs official when you leave the country or the European Union, then mail the stamped form back to the store (assuming that the shop is willing to handle refunds this way). Note: For smaller transactions, the cost of cashing a foreign-currency check may exceed the amount of the refund. However, it's worth considering for large purchases or if the merchant will credit the refund to your credit-card account instead of mailing you a check. In the latter case, your credit-card company will automatically convert the refund to your local currency. 3. Charge your purchase with a credit card and ask the shop to make two charge slips: one for the amount of the sale after deduction of the VAT, and the other for the amount of the VAT. The store will post the larger transaction but set the VAT charge slip aside. After you've had your VAT refund form stamped by customs, mail it back to the store, and the merchant will destroy the VAT charge slip without submitting it. (Not all merchants will go along with this method, and it works best in stores that handle credit-card transactions manually.) Important:
Next page: How much you'll save
|
|
|
