Duty | Tax | Customs for International shopping {VAT refund}

[ryland345]

So long as it is a credit card refund, the exchange rate will not be in our favor and this is due to the credit card companies/banks. This is why I prefer cash refund and love the fact that unlike most shops in France, Italy doesn't practice taking an additional 10% VAT refund off if the cash refund option is made. I had problem with my cash refund with Travelex at Paris CDG though. Travelex refused to give me my refund in cash and asked me to mail my tax refund for a credit card refund instead. I am still waiting for the refund while seeing Euro weakens each day.

All 3 dept stores in Paris, namely Lafayette, Printemps and Le Bon Marche use GlobalBlue.

Well, I'll be darned, LV is now the same price throughout Europe! Just last year, it was 20 euros more everywhere except France. And I think Callalili is referring to the fact that VAT is officially 20% but you don't really get that due to processing fees (I always thought it was d/t the company and not the brand, but idk).

And since the dept stores use Globalblue, Callalili, their refund calculator may be accurate should you purchase there vs at a boutique.

What do you mean by the VAT 10% reduction by cash? As in, there's no difference between paying by card or cash? I wonder if Spain also does that Also, maybe you can answer a question I had. When they ask if you should pay in your native currency vs their currency, which should you choose? And does the same choice go for getting VAT? Example: Pay for a bag in EUR and get VAT back in EUR, as the EUR:USD is 1.09: $1.00

 

[Mumof2mOnstErs]

Well, I'll be darned, LV is now the same price throughout Europe! Just last year, it was 20 euros more everywhere except France. And I think Callalili is referring to the fact that VAT is officially 20% but you don't really get that due to processing fees (I always thought it was d/t the company and not the brand, but idk).

And since the dept stores use Globalblue, Callalili, their refund calculator may be accurate should you purchase there vs at a boutique.

What do you mean by the VAT 10% reduction by cash? As in, there's no difference between paying by card or cash? I wonder if Spain also does that Also, maybe you can answer a question I had. When they ask if you should pay in your native currency vs their currency, which should you choose? And does the same choice go for getting VAT? Example: Pay for a bag in EUR and get VAT back in EUR, as the EUR:USD is 1.09: $1.00

In France, Chanel boutiques offer 13% VAT refund if you opt for cc refund and 11.7% VAT refund if you opt for cash while LV boutiques offer 12% VAT refund for cc and 10.8% VAT refund for cash. That is how the 10% VAT deduction comes about for cash refund. It doesn't matter if you had paid in cc or cash. But the cc you used to pay will be the one cc VAT refund will be done to.

I always opt for paying in EUR as my local bank will bill me 0.8% extra more on the amount that I was informed I will be charged by the merchants. VAT refund by cc will always be in EUR in countries that uses in EUR but your cc/bank will convert it to your local currency before it is posted to your account.

 

[ThisVNchick]

In France, Chanel boutiques offer 13% VAT refund if you opt for cc refund and 11.7% VAT refund if you opt for cash while LV boutiques offer 12% VAT refund for cc and 10.8% VAT refund for cash. That is how the 10% VAT deduction comes about for cash refund. It doesn't matter if you had paid in cc or cash. But the cc you used to pay will be the one cc VAT refund will be done to.

I always opt for paying in EUR as my local bank will bill me 0.8% extra more on the amount that I was informed I will be charged by the merchants. VAT refund by cc will always be in EUR in countries that uses in EUR but your cc/bank will convert it to your local currency before it is posted to your account.

That's interesting, I didn't know the Chanel cash refund was 12%. Is this done at the Chanel boutique or do they direct you to another place to get this done? I'm tempted to do cash refunds on my next trip, as the euro keeps dropping. By the time I receive my refunds in 2 months, the exchange rate will be lower and the money refunded will have been equivalent as the ATM cash refund. Something to think about...

 

[MASEML]

That's interesting, I didn't know the Chanel cash refund was 12%. Is this done at the Chanel boutique or do they direct you to another place to get this done? I'm tempted to do cash refunds on my next trip, as the euro keeps dropping. By the time I receive my refunds in 2 months, the exchange rate will be lower and the money refunded will have been equivalent as the ATM cash refund. Something to think about...

You collect your VAT refund at the airport when you are leaving the EU. Does it even matter whether you collect cash or get it back on your card? The fx will be the same whether you have it in cash or back on your card in your own currency.

Edit: it might be better to wait if the euro keeps dropping. You'll get more USD on your card than holding Euros in your hand that keeps dropping in value.

 

[ThisVNchick]

You collect your VAT refund at the airport when you are leaving the EU. Does it even matter whether you collect cash or get it back on your card? The fx will be the same whether you have it in cash or back on your card in your own currency.

Actually I've collected cash refund not at the airport. There are cash refund offices around Paris. You show them your refund form and they issue you money right then and there. I was able to get the refund in USD as well.

As for the money vs. getting it back on your card deal, here was my train of thought. Let's say I buy a bag for 1000 euro. If I get cash back, it's 12%, so I receive 120 euro at the current exchange rate. But if I do the cc rebate, it's 13%, or 130 euro. But let's say between now and by the time I receive my refund (2 months later, that has been the average time I've received my cc refund), the euro exchange rate dropped by 10%. My 13% refund is now worth less due to the drop of the euro. Because when the money is returned on my card, the company is only going to return 130 euro but when it translates to USD it does depend on the current exchange rate and not the rate at which you bought it as.

I bring this up because when I went to Paris in October the euro/usd rate was 1.28. By the time I received my refund in December the exchange rate had dropped to 1.13, so my cc refund was less than if I had taken my money out back in October. But of course, there's only a big difference (if the exchange rate drops) if you spend a lot.

Sorry my dad is in business/finance, I tend to over-analyze financial matters.

 

[MASEML]

Actually I've collected cash refund not at the airport. There are cash refund offices around Paris. You show them your refund form and they issue you money right then and there. I was able to get the refund in USD as well.

As for the money vs. getting it back on your card deal, here was my train of thought. Let's say I buy a bag for 1000 euro. If I get cash back, it's 12%, so I receive 120 euro at the current exchange rate. But if I do the cc rebate, it's 13%, or 130 euro. But let's say between now and by the time I receive my refund (2 months later, that has been the average time I've received my cc refund), the euro exchange rate dropped by 10%. My 13% refund is now worth less due to the drop of the euro. Because when the money is returned on my card, the company is only going to return 130 euro but when it translates to USD it does depend on the current exchange rate and not the rate at which you bought it as.

I bring this up because when I went to Paris in October the euro/usd rate was 1.28. By the time I received my refund in December the exchange rate had dropped to 1.13, so my cc refund was less than if I had taken my money out back in October. But of course, there's only a big difference (if the exchange rate drops) if you spend a lot.

Sorry my dad is in business/finance, I tend to over-analyze financial matters.

Of course, you should definitely find the best deal. You are right, it's better to take it in cash. I started thinking about it more and realized I was incorrect.

I went the opposite direction of business/finance!

As for these refund points throughout paris, did you still need to visit customs or the machine at the airport? It's a requirement to have customs verify the export (to the extent they actually verify) so thought that is only performed at the airport?

 

[ThisVNchick]

Of course, you should definitely find the best deal. You are right, it's better to take it in cash. I started thinking about it more and realized I was incorrect.



I went the opposite direction of business/finance!



As for these refund points throughout paris, did you still need to visit customs or the machine at the airport? It's a requirement to have customs verify the export (to the extent they actually verify) so thought that is only performed at the airport?

No I didn't. The refund points in the city take your copy and give your that bottom portion to keep for your record. I didn't have to come early to the airport to wait in line at customs because I already received cash.

But I'm not sure if there's a price limit to do it at these spots. The last time I did this was years ago and it was for a speedy which only costs 430 euro. I am thinking if you spend thousands of dollars you might not be able to use these service points because I know customs likes to check if you are actually bringing the items out of the EU (instead of buying them for someone else who resides in the EU).

 

[gail13]

No I didn't. The refund points in the city take your copy and give your that bottom portion to keep for your record. I didn't have to come early to the airport to wait in line at customs because I already received cash.

But I'm not sure if there's a price limit to do it at these spots. The last time I did this was years ago and it was for a speedy which only costs 430 euro. I am thinking if you spend thousands of dollars you might not be able to use these service points because I know customs likes to check if you are actually bringing the items out of the EU (instead of buying them for someone else who resides in the EU).

Great suggestion; what are these refund points called or what do they look like?

 

[ThisVNchick]

Great suggestion; what are these refund points called or what do they look like?

I don't remember exactly where. I just remember it being in an indoor mall. The booth is like those currency exchange booths at the airport, except in the mall. The guy tells you fill out the VAT form and sign and he takes the top portion and gives you the bottom.

I know one is very close to the Louis Vuitton flagship store. When I did this years ago, the lady who rang me up was able to give me simple directions to get there. The walk was about 5-10 minutes from the store.

 

[Mumof2mOnstErs]

That's interesting, I didn't know the Chanel cash refund was 12%. Is this done at the Chanel boutique or do they direct you to another place to get this done? I'm tempted to do cash refunds on my next trip, as the euro keeps dropping. By the time I receive my refunds in 2 months, the exchange rate will be lower and the money refunded will have been equivalent as the ATM cash refund. Something to think about...

In France, they will make you decide cc or cash refund at the point of payment where they prepare the tax refund form. Cash refund is to be collected at the airport of EU departure.

 

[Mumof2mOnstErs]

You collect your VAT refund at the airport when you are leaving the EU. Does it even matter whether you collect cash or get it back on your card? The fx will be the same whether you have it in cash or back on your card in your own currency.

Edit: it might be better to wait if the euro keeps dropping. You'll get more USD on your card than holding Euros in your hand that keeps dropping in value.

At the point of purchasing, you will want EUR to weaken so your purchase will be cheaper. At the point of refund, you will want EUR to strengthen so you can get more refund back, i.e., more savings. Cash refund allows you to change to your local currency as and when you will like or use the money for future trips to Europe.

 

[Mumof2mOnstErs]

Of course, you should definitely find the best deal. You are right, it's better to take it in cash. I started thinking about it more and realized I was incorrect.

I went the opposite direction of business/finance!

As for these refund points throughout paris, did you still need to visit customs or the machine at the airport? It's a requirement to have customs verify the export (to the extent they actually verify) so thought that is only performed at the airport?

There are some stores, e.g., the 3 department stores in Paris that allows one to take the cash refund before the customs stamps. Although you have the cash refund in hand, the risk level is the same as cc refund. One doesn't get the cc refund if the refund forms are not stamped by the customs or/and received back by the processing agent. In the case of cash refund, you will be charged for the cash refund you have taken if the refund forms are not stamped by the customs or/and received by the processing agent.

 

[callalili]

Which type of service fee are you referring to? If you are referring to how much VAT refund you can get back, it should be dependent on the brands/stores you are getting from and not the processing companies.

I'm referring to service charge by the tax refund company. Is it true that different tax refund company charge different service fee? Is there any option for me to choose either globalblue or premier tax in Chanel boutique? Or should i buy from departmental store since they might have option for me to choose either to use globalblue or premier tax company?
Another thing, do you know whats the price of easy flap now in Europe? I cant afford the classic, can only eyeing the lower range of Chanel now

 

[callalili]

I don't remember exactly where. I just remember it being in an indoor mall. The booth is like those currency exchange booths at the airport, except in the mall. The guy tells you fill out the VAT form and sign and he takes the top portion and gives you the bottom.

I know one is very close to the Louis Vuitton flagship store. When I did this years ago, the lady who rang me up was able to give me simple directions to get there. The walk was about 5-10 minutes from the store.

Is this service (receive cash refund) only available in Paris or across Europe? What about big cities like Amsterdam or Brussels? I plan to get my Chanel is Amsterdam or Brussels since the vat refund is higher compare to Paris

 

[Mumof2mOnstErs]

I'm referring to service charge by the tax refund company. Is it true that different tax refund company charge different service fee? Is there any option for me to choose either globalblue or premier tax in Chanel boutique? Or should i buy from departmental store since they might have option for me to choose either to use globalblue or premier tax company?
Another thing, do you know whats the price of easy flap now in Europe? I cant afford the classic, can only eyeing the lower range of Chanel now

The processing agents, Premier Tax or Global Blue are partners chosen by the merchants. How the service fee is charged which results in no getting the full VAT refund is also not something we as customers can decide. For cash refunds at some airports like France, there is commission charged as handling fee per refund form refunded by the cash refund agent. My personal experience in Paris CDG in 2013, 2014 and 2015 tell me that there is no consistency in how much is being charged as commission and refund from which merchant does not require a commission.