Unfortunately I don't know if he did, I didn't see him do it since the counter was blocking where his hands were but he could have. He specifically told me everything was okay though. But he also could have just been telling me that to shoo me away lol.
Duty | Tax | Customs for International shopping {VAT refund}
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Unfortunately I don't know if he did, I didn't see him do it since the counter was blocking where his hands were but he could have. He specifically told me everything was okay though. But he also could have just been telling me that to shoo me away lol.
Hoping you all can ease my mind as I am quite nervous. I have travelling through London Customs many time but my experience yesterday was different. I purchased a Chanel bag in Austria, received my VAT form and was told I could stop at the VAT tax place in town to get my money back. I chose the cash option since I figured that would be safer but they told me I would need to get a customs stamp in London and then give it to tax free premium office at Heathrow. Easy enough. That is what I have always done at European airports.
fast forward to yesterday at Heathrow terminal 5. Go to customs and no one is there but a red phone you can use to speak to customs. They said go to travelex as they now handle vat tax. They stamped the Chanel vat tax form but the issue is they aren’t customs. I asked how I get the customs stamp and they said the way it is done at Heathrow is travelex manages and then they work with customs to “get the stamps” and then supposedly will mail the completed forms to global blue or vat free premium. I even called customs again from the red phone and they confirmed this is correct. However this process seems like there are so many opportunities for it to go wrong. They also kept my receipt instead of giving it back to me. In addition the form says that they don’t get the vat form back within 21 days, they will charge my card for the $$ i was given plus 25% more.
Has anyone had a similar experience? Thanks!
fast forward to yesterday at Heathrow terminal 5. Go to customs and no one is there but a red phone you can use to speak to customs. They said go to travelex as they now handle vat tax. They stamped the Chanel vat tax form but the issue is they aren’t customs. I asked how I get the customs stamp and they said the way it is done at Heathrow is travelex manages and then they work with customs to “get the stamps” and then supposedly will mail the completed forms to global blue or vat free premium. I even called customs again from the red phone and they confirmed this is correct. However this process seems like there are so many opportunities for it to go wrong. They also kept my receipt instead of giving it back to me. In addition the form says that they don’t get the vat form back within 21 days, they will charge my card for the $$ i was given plus 25% more.
Has anyone had a similar experience? Thanks!
Just returned from an Europe trip and want to share a little bit about my declare process at US custom. I heard a lot about 9% tax before I making the trip and have already prepared for that. When I returned, the U.S custom agent who took care of my declare was kind and charged me 6.5% instead of 9%. You will also get a $800 tax free and also the first 1,000 at 3%. Hope this quick sharing is helpful!
I flew out of LHR last month and claimed my VAT at the Travelex. There were no line and the people working there were really nice. We got all of our VAT back within a few weeks.
Hello, can you actually explain how the VAT and declaration process at US customs work? Im a bit confused. Im planning a trip to Paris and from what i understand you can get money back before leaving paris with the VAT. I plan on doing a lot of shopping (bags, mainly LV and YSL, probably will spend around $5000). Now my question is, as im doing my research i read something along the lines of $800 being some sort of spending limit before having to pay tax when you return to the US. How does that work? Am i saving money or am i just paying back the money i think im saving once i return back to JFK (nyc). Sorry if this sounds like a dumb question, im 22 so it’s my first time traveling to europe.
The VAT and US Customs Tax are two different/unrelated issues.
In Europe, unlike in the US, their tax (VAT of approx. 20%) is added to the price of the merchandise as shown on the tags rather than added at checkout. The VAT also refundable to non-EU residents departing the EU with their purchases; however, the actual refund amount is only around 12-13% after fees and there are very specific requirements. You will find lot of useful information on the VAT Refund process, requirements, tips, etc. in this thread. The VAT Refund process is handled before you leave the EU.
US Customs Tax is handled as you re-enter the US with the merchandise and go through customs. The first $800 for individuals/$1600 for couples is exempt from US Customs Tax. The next $1,000 is subject to a flat 3% Customs Tax. Any amounts over that are taxed based on the Harmonized Tariff Schedule (which I believe is currently 6.5% for handbags). So if you are traveling alone/not as a family you would pay the following taxes on $5,000 worth of handbags (Note: The amount you declare should be the amount after the VAT Refund and you should have receipts and copies/photos of VAT Refund Forms available as evidence):
First $800 = Exempt/No Tax
Next $1,000 = $30
Remaining $3,200 = $208
Total US Customs Tax Due = $238
Many of us have had experiences with customs agents waving us through without charging US Customs Tax or being charged less than than the actual tax due, but other times we've been charged the full US Customs Tax. It seems to vary depending on the agent, but even if you are charged the full US Customs Tax, there is still a significant savings. Enjoy your trip and have fund shopping!
Thank you so much this is so helpful! Can i pay for my purchases in cash and get my VAT refund back in cash?
Also, im traveling with my girlfriend and she doesnt plan on doing any shopping, so if i were to lower my budget and spend 1800 under my passport name and she puts another $1800 of purchases under her passport name, in this case we would only pay $30 each so $60 for a total of $3600, right?
Hi all, I apologize if this question has already been asked, I’m on my iPhone and can’t seem to find the information through my searches. I have an early 7:15am flight out of Bilbao to CDG and a short transfer back to the US. I need to claim some VAT from purchases in both France and Spain, which airport should I claim my VAT? If I need to claim at CDG, would I need to exit the airport or are their VAT refund kiosks inside the terminal? Thanks in advance.
Bilbao. Unless you have the item on your carry on, you can try claim/stamp in CDG. The should have booth on the airside so no need to exit to landside. But I wouldn’t take this route if you have less than 3h transit. Plus flights can delay and we can’t foresee for how long. Besides, we must locate where and how far the booth is from your arrival gate vs departure gate in your transit.
Hi , I live in Asia and will be in London for about 2 months in the summer. I plan to visit Paris and will shop Chanel there. I hope I can get my VAT refund done in Paris, even though my flight will be to London? Because of the double price increase in the UK, I no longer find it feasible to shop Chanel in the UK despite the VAT refund
I’m Italian and I use to buy my luxury items in my hometown, Florence, for many reasons: to be closed to the store if I have a trouble, to organise my purchase better and so on. Anyway, I was wondering about VAT refund opportunity. I know American citizens come here in Europe to buy Chanel less pricey and get the refund as well but what about us, how can we make a good deal? Buying in America or Asia it’s already more expensive than here, so VAT refund doesn’t really mean to pay less, is BREXIT going to change things? Maybe in London we can get tax refund since now, can we?
Yes, once the transitory period is over (I believe in December of this year, if an extension isn't agreed upon), we'll be able to get a VAT refund in the UK. But I'm not so sure if it will be advantageous considering the conversion rate from the euro to the pound? At least we're able to pay lower prices generally than in other parts of the world!
You are right but I would like to buy a Chanel classic flap and, considering the consistent price increase, I’m trying to find a good opportunity.Yes, once the transitory period is over (I believe in December of this year, if an extension isn't agreed upon), we'll be able to get a VAT refund in the UK. But I'm not so sure if it will be advantageous considering the conversion rate from the euro to the pound? At least we're able to pay lower prices generally than in other parts of the world!