As I understand it:...
In the UK VAT (value added tax, which replaced purchase tax here many years ago) is 20% on most things you buy.
I have wondered why the refund you get is nowhere near that. Is it the charges that the collection companies make?
At airports, ports and on planes it is called Duty Free Shopping. The prices are little lower than we might pay in other shops, the mark down on alcohol and perfume is not much greater than we can get on promotions in supermarkets or department stores if at all.
Being in the EU excise/import duty is not charged to us if we in France or Germany and bring back to England. ( We have to be aware that we can get hefty charges on that eBay bargain from USA or Japan)
What is offered to tourists/visitors is a VAT refund, so that should be 20%
I did think that some of the major international companies adjusted their pricing so that wherever you bought in the world the final cost would be the same (disregarding any tax/duty rebates). But comparing Hermes online shopping prices for different countries this does not appear to be so.
This article might be of interest:
http://www.reidsguides.com/t_mo/t_mo_duty_free.html
In the UK VAT (value added tax, which replaced purchase tax here many years ago) is 20% on most things you buy.
I have wondered why the refund you get is nowhere near that. Is it the charges that the collection companies make?
At airports, ports and on planes it is called Duty Free Shopping. The prices are little lower than we might pay in other shops, the mark down on alcohol and perfume is not much greater than we can get on promotions in supermarkets or department stores if at all.
Being in the EU excise/import duty is not charged to us if we in France or Germany and bring back to England. ( We have to be aware that we can get hefty charges on that eBay bargain from USA or Japan)
What is offered to tourists/visitors is a VAT refund, so that should be 20%
I did think that some of the major international companies adjusted their pricing so that wherever you bought in the world the final cost would be the same (disregarding any tax/duty rebates). But comparing Hermes online shopping prices for different countries this does not appear to be so.
This article might be of interest:
http://www.reidsguides.com/t_mo/t_mo_duty_free.html