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

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Does anyone know about VAT for a purchase at the Dubai airport? My husband had a layover and never left the airport or had his passport stamped. He then flew into Dulles and didn’t declare anything with customs. I have a receipt and a tax invoice. Did we loose the VAT?
 
Does anyone know about VAT for a purchase at the Dubai airport? My husband had a layover and never left the airport or had his passport stamped. He then flew into Dulles and didn’t declare anything with customs. I have a receipt and a tax invoice. Did we loose the VAT?

I don't know about Dubai specifically, but if he didn't leave the airport and made the purchase after security, then the price was already VAT free. That's the benefit of purchasing in the duty free areas of airports, you don't need to get a customs stamp or go through the hassle of doing the paperwork as the price has already been reduced by the VAT.

The disadvantage of course is that there is never a guarantee that the airport shops will have exactly what you want.
 
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I don't know about Dubai specifically, but if he didn't leave the airport and made the purchase after security, then the price was already VAT free. That's the benefit of purchasing in the duty free areas of airports, you don't need to get a customs stamp or go through the hassle of doing the paperwork as the price has already been reduced by the VAT.

The disadvantage of course is that there is never a guarantee that the airport shops will have exactly what you want.
Dubai does not have taxes in city...
 
Thanks so much! That’s what we suspected. He didn’t even use his passport, just his military ID in Bahrain, then a layover in Dubai. He got a really awesome deal and no tax too so I shouldn’t question it.

I don't know about Dubai specifically, but if he didn't leave the airport and made the purchase after security, then the price was already VAT free. That's the benefit of purchasing in the duty free areas of airports, you don't need to get a customs stamp or go through the hassle of doing the paperwork as the price has already been reduced by the VAT.

The disadvantage of course is that there is never a guarantee that the airport shops will have exactly what you want.
 
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Thanks so much! That’s what we suspected. He didn’t even use his passport, just his military ID in Bahrain, then a layover in Dubai. He got a really awesome deal and no tax too so I shouldn’t question it.

Excellent! Yes, he got the lowest price he could have. I love shopping in airports for that reason, its just a lot easier not dealing with the VAT refund process (though it really isn't that difficult).
 
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Hi all!

I have a few questions. I am traveling to London-Portugal-Milan-Greece next month. Planning on getting a few Chanel classic flaps in London. My return flight to US is from Athens with layover at LHR, then US.
1. Is the price difference all that significant if getting a small flap in the UK versus US? What is the price sans VAT? I see the conversion of the posted price from GBP to USD is $4,951, which I assume includes VAT. Then I have to add the 8% US customs correct?
2. If buying during our first stop in London, can I still claim the VAT refund? Do I have to pay customs when coming back from Athens?

Sorry for the multiple questions! I appreciate your replies in advance!

:)
 
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Hi all!
I have a few questions. I am traveling to London-Portugal-Milan-Greece next month. Planning on getting a few Chanel classic flaps in London. My return flight to US is from Athens with layover at LHR, then US.
1. Is the price difference all that significant if getting a small flap in the UK versus US? What is the price sans VAT? I see the conversion of the posted price from GBP to USD is $4,951, which I assume includes VAT. Then I have to add the 8% US customs correct?
2. If buying during our first stop in London, can I still claim the VAT refund? Do I have to pay customs when coming back from Athens?

OK, this is going to be a loooong response lol.
First, I believe there is a one bag per passport policy at Chanel. (Note that WOCs are considered slg's so not part of the one per passport limit so you could buy one flap and one WOC per passport without any problems.) Also, I doubt that Chanel has a way of checking if you bought a flap at Chanel Bond Street and then bought another flap at Harrods or at Selfridges, for example, but just be aware that you might have to split your purchases between locations around the city. If you are buying seasonal items, I think they are more loose with the restrictions.

My last check of prices indicated that a small classic flap was £3,810. The VAT refund should be roughly 13.4%. (This was my exact % refund from London when I bought my small classic flap there a couple years ago. Yes, i have a spreadsheet. :coolio:). So, your VAT refund should be roughly £510 with a net cost of £3,300, converted to $4,290, as compared to $5,000 in the U.S. plus sales tax in whatever state you live in. So, a reasonably significant savings.

U.S. customs duty/tax on your purchases when you re-enter the U.S. will depend on how much you bought in total and how large your traveling party is. Each member of your traveling party gets $800 tax free, next $1000 is at 3%, amounts over $1,800 are taxed at 6%. So, if you are two people traveling: $1,600 is tax free, next $2,000 only costs $60, then the balance over $3,600 is taxed at 6%. So, you might not pay that much unless you are coming back with tens of thousands of dollars worth of small classic flaps.

Your second question: you claim the refund at your last stop in the EU before returning to the U.S. If you place your items in your luggage and check your luggage all the way through to the U.S. in Athens, then you would get the Customs stamp and complete the process in Athens. If you keep the items with you and carry them on the plane and have only a very short layover at LHR, then you would still want to complete the process in Athens. However, if you carry the items on the plane with you and have a long layover at LHR, then you could wait to do it at LHR. (The items have to be in their original packaging and available to be inspected and then the paperwork will be stamped by Customs so if the items are checked in your luggage at your starting ponit, then you have no choice but to complete the process in Athens.) However, please, take my advice and keep your items with you and carry them on the plane. It is worth the hassle. You don't need them to disappear or be damaged in transit. If you choose to do the refund on your way through LHR, make sure you have lots and lots of time. The lines can be long and you want to have plenty of time to complete the process. Like hours of extra time, just in case.

Good luck finding a small classic flap, they are tough to track down and you might have to call everywhere in London, but it's worth it. I love mine!
 
OK, this is going to be a loooong response lol.
First, I believe there is a one bag per passport policy at Chanel. (Note that WOCs are considered slg's so not part of the one per passport limit so you could buy one flap and one WOC per passport without any problems.) Also, I doubt that Chanel has a way of checking if you bought a flap at Chanel Bond Street and then bought another flap at Harrods or at Selfridges, for example, but just be aware that you might have to split your purchases between locations around the city. If you are buying seasonal items, I think they are more loose with the restrictions.

My last check of prices indicated that a small classic flap was £3,810. The VAT refund should be roughly 13.4%. (This was my exact % refund from London when I bought my small classic flap there a couple years ago. Yes, i have a spreadsheet. :coolio:). So, your VAT refund should be roughly £510 with a net cost of £3,300, converted to $4,290, as compared to $5,000 in the U.S. plus sales tax in whatever state you live in. So, a reasonably significant savings.

U.S. customs duty/tax on your purchases when you re-enter the U.S. will depend on how much you bought in total and how large your traveling party is. Each member of your traveling party gets $800 tax free, next $1000 is at 3%, amounts over $1,800 are taxed at 6%. So, if you are two people traveling: $1,600 is tax free, next $2,000 only costs $60, then the balance over $3,600 is taxed at 6%. So, you might not pay that much unless you are coming back with tens of thousands of dollars worth of small classic flaps.

Your second question: you claim the refund at your last stop in the EU before returning to the U.S. If you place your items in your luggage and check your luggage all the way through to the U.S. in Athens, then you would get the Customs stamp and complete the process in Athens. If you keep the items with you and carry them on the plane and have only a very short layover at LHR, then you would still want to complete the process in Athens. However, if you carry the items on the plane with you and have a long layover at LHR, then you could wait to do it at LHR. (The items have to be in their original packaging and available to be inspected and then the paperwork will be stamped by Customs so if the items are checked in your luggage at your starting ponit, then you have no choice but to complete the process in Athens.) However, please, take my advice and keep your items with you and carry them on the plane. It is worth the hassle. You don't need them to disappear or be damaged in transit. If you choose to do the refund on your way through LHR, make sure you have lots and lots of time. The lines can be long and you want to have plenty of time to complete the process. Like hours of extra time, just in case.

Good luck finding a small classic flap, they are tough to track down and you might have to call everywhere in London, but it's worth it. I love mine!


WOW! You are awesome! Thanks so much for your response! I will start the storers a few days later to see if I can find it and put it on hold! I think we have like 4 hours of layover at LHR, so it sounds like I better just do it in Athens of possible. I appreciate your time and response!
 
WOW! You are awesome! Thanks so much for your response! I will start the storers a few days later to see if I can find it and put it on hold! I think we have like 4 hours of layover at LHR, so it sounds like I better just do it in Athens of possible. I appreciate your time and response!

If you've got a 4 hour layover at LHR, you should be fine but I'd probably just take care of it in Athens for peace of mind. I've never processed a refund in Athens airport so I don't know how easy or reliable it is. Btw, sometimes the Customs departments don't open until 6 AM or 7 AM so hopefully your flight isn't around that time.
 
When you use your passport to purchase throughout the UK and EU do customs officials know before hand what you bought? or do they base it off of what you write on the forms?

No Customs officials have any knowledge of what you bought that I'm aware of. They aren't tracking your purchases by passport number. (I can imagine that one day they will do that but it is not happening now.)

When you re-enter the U.S., the question they ask on the form (or at the electronic kiosk if your airport has one) is a general one: did you purchase goods worth $800 or more abroad? You do not fill out an itemized list at that point. However, if you say, yes, you did purchase items worth $800 or more, you are directed to a different line. Customs then generally repeats the question face to face. When I have replied, yes, I did, they sometimes say no problem, have a nice day and welcome home. Other times, they've asked me specifically what I bought. At that point, I whip out a complete list that I usually put together on the plane with purchase prices minus VAT refunds, with the conversion to U.S. dollars, and with all the receipts in one place. They have verified my calculations and I've paid what was owed. When I am up front with them, they are pleased and have never searched my luggage and matched up my items and receipts.
 
I’ve been reading a lot about good shopping opportunities at Heathrow Airport.
I’ll be at T5 in July and was wondering if the pricing is less 17% or 20% vat off the retail price? Planning out my shopping strategy so the vat percentage helps.

ie: camera case for £2400 retail will be less 20% @ £1920 out the door
OR
17% @ £1992 out the door

Every little bit counts[emoji6]
Thanks!
 
I’ve been reading a lot about good shopping opportunities at Heathrow Airport.
I’ll be at T5 in July and was wondering if the pricing is less 17% or 20% vat off the retail price? Planning out my shopping strategy so the vat percentage helps.

ie: camera case for £2400 retail will be less 20% @ £1920 out the door
OR
17% @ £1992 out the door

Every little bit counts[emoji6]
Thanks!
I am pretty sure it's around 17% but it's only when flying out of the EU. Based on the prices I saw in T3 last week, the standard ballet flats for example normally retail for £530, the outside EU price was £440 so a saving of 16.98%

Hope this helps
 
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