Official worldwide thread - Tips/Advice for customs, VAT, etc...

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#916
There seems to be a lot of misconceptions about VAT refunds for visitors to Europe.

The European Commission published a simple guide regarding refund rules for visitors:
http://ec.europa.eu/taxation_custom...rs-leaving-eu/guide-vat-refund-visitors-eu_en

Furthermore, the VAT rate varies between 15-25% dependent on the European country of purchase (always included in the retail price). In France, the VAT is 20% at the moment. People tend to get the calculation wrong. If you buy a 1,000 EUR bag in France, this does not mean the VAT is 200 EUR. VAT is added to the gross amount (excluding VAT) to come up with a retail price. In the case of the 1,000 EUR bag in France, this would imply 166.67 EUR (1000-1000/(1+0.2). The price excluding VAT is 833.34 EUR. Adding 20% on top of that amount will get you to 1000 EUR. In other words, on the final retail price of 1,000 EUR in France, the VAT comprises approx. 16.6% of the final retail price.

Most shops will work with a company like Global Blue to manage the VAT refund process. That service obviously does not come for free. Sticking with the 1,000 EUR bag example purchased in France, Global Blue will only refund you 120 EUR; thus taking a 46.67 EUR (=166.67-120) commission. Global Blue has a simple calculator on their site which you can use to calculate the VAT refund:

http://www.globalblue.com/customer-services/tax-free-shopping/refund-calculator/

Some shops do offer alternative VAT refund options. For example, I recently purchased a watch and the store charged my credit card for the price excl. VAT and separately for the VAT. I got the invoice stamped at the airport upon my departure and sent it back to the store and they refunded me the entire VAT amount.
 
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#918
sblack said:
Does anyone know what the VAT is in China on designer handbags? Also, as a tourist, can you qualify for a VAT refund?

Thanks so much!
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From my limited experience (and things change, I was last in China in fall): VAT in China is 17% on most items but can be as low as 11%. I've only bought luxury clothing in China and the VAT was 17% - not sure about handbags but that should be standard. You can get it refunded if the store provides you with a tax form - the process is a little messy (no PABLO type kiosks) and only works at larger airports.
There are "tax free stores" that partner with Global Blue and their system makes it a little easier but of course Global Blue takes a big bite out of the refund.

In general I don't buy things in China that are not made in China as there are so many import taxes levied that prices get very high. Imported designer handbags are not something you'd want to buy there, but there are beautiful items from Chinese designers.
 
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#919
QuelleFromage said:
From my limited experience (and things change, I was last in China in fall): VAT in China is 17% on most items but can be as low as 11%. I've only bought luxury clothing in China and the VAT was 17% - not sure about handbags but that should be standard. You can get it refunded if the store provides you with a tax form - the process is a little messy (no PABLO type kiosks) and only works at larger airports.
There are "tax free stores" that partner with Global Blue and their system makes it a little easier but of course Global Blue takes a big bite out of the refund.

In general I don't buy things in China that are not made in China as there are so many import taxes levied that prices get very high. Imported designer handbags are not something you'd want to buy there, but there are beautiful items from Chinese designers.
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Thanks so much for clarifying!
 
#920
Hi all! I was wondering if someone could give some insight. I'll be traveling to Paris with a cousin and there are bag restrictions at certain stores. If I have my cousin purchase a handbag for me, how does customs work at the airport? Can I take the handbag with me if we're based in different states? Or is it best for her to mail it to me instead (after our flights home)? I always declare the full value of everything I purchase and would be ready to pay any imposed duties.
 
#921
ihalhaiha said:
Hi all! I was wondering if someone could give some insight. I'll be traveling to Paris with a cousin and there are bag restrictions at certain stores. If I have my cousin purchase a handbag for me, how does customs work at the airport? Can I take the handbag with me if we're based in different states? Or is it best for her to mail it to me instead (after our flights home)? I always declare the full value of everything I purchase and would be ready to pay any imposed duties.
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You can take the bag with you. Just make sure you have the receipt. I have different last name from my husband and when doing detaxe in Rome we did it all together and no problem. If you are given a gift by someone in Europe you still have to pay for it even though you didn't pay for it yourself. So you should be fine taking the bag with you.
 
#922
bellapurse said:
You can take the bag with you. Just make sure you have the receipt. I have different last name from my husband and when doing detaxe in Rome we did it all together and no problem. If you are given a gift by someone in Europe you still have to pay for it even though you didn't pay for it yourself. So you should be fine taking the bag with you.
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Thank you so much! This is the reassurance I needed. <3
 
#924
Hey guys, sorry to ask but anyone knows about getting a python sample item from Indonesia, shipped to US. I think my seller might just have shipped it without any paper and probably he won't even indicate what type of material. Since he declared total value just a shy 238 for me, half the actual cost but I'm still not too sure. I think he does not want me to have further hassle or any on his end. Any idea on the risk I'm taking here?

Thanks so much for any advice!
 
#926
Hi all, I was planning on buying some items from Grifo210.com . They are valentino items < $800. Grifo informed me that I would not face additional charges, just 531 euros. I'm a newbie and have never ordered overseas before, but they are reassuring me that i won't be charged tax or additional fees since the total is less than <$800. They ship through courier DHL. I read on another post that a user was charged an additional $100 via DHL (however their purchase was greater than $800). Anyone have advice on this?
 
#928
Hi guys, I need some advice!!! Which Place is cheaper to get a Louis Vuitton bag in Europe? After deducting VAT that is. I have read forums and blogs some say France some say Italy. I am confused. Need someone with experience to guide me :)))
 
#930
snarahari88 said:
Hi all, I was planning on buying some items from Grifo210.com . They are valentino items < $800. Grifo informed me that I would not face additional charges, just 531 euros. I'm a newbie and have never ordered overseas before, but they are reassuring me that i won't be charged tax or additional fees since the total is less than <$800. They ship through courier DHL. I read on another post that a user was charged an additional $100 via DHL (however their purchase was greater than $800). Anyone have advice on this?
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You're in the US? There are duties on anything dutiable shipped to US (fine art is exempt, several other categories) and the $800 exemption is for travelers, not shipping. Most overseas sellers (Net-a-Porter, Matches) include duty in their pricing.
Also, even on objects that do not incur duty, some states will impose "use tax".
From Grifo210 website itself:
The goods will arrive directly at the place indicated and for deliveries to European Union member states do not have to pay anything in addition to the amount paid at the time of the order, while shipments to countries outside Europe, the courier might come with a separate invoice which requires the payment of duties and taxes charged by local authorities.
 
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