Official worldwide thread - Tips/Advice for customs, VAT, etc...
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I'm traveling to Europe and will be declaring everything on return. Is there a cap on how much you can spend? I always get nervous about returning back with so many leather goods and bags. Also, do you know if LV limits numbers that you can buy in Paris? Thank you
I had a friend visiting from the US and she really went on a shopping excursion, as long as you declare everything, they are really not fussed how much you bring back, don't know if this helps but this is on the official website, apart from telling you how much you can bring in duty free, it also explains the forms
https://help.cbp.gov/app/answers/detail/a_id/454/~/duty-free-exemption,-gifts
And they give an example of the form you have to fill out
https://www.cbp.gov/travel/clearing-cbp/traveler-entry-form
ASSUMING YOU ARE IN THE US:
There is no cap to what you can spend personally (
), but there is a limit to your duty free exemption. What does this mean? If you paid tax/duty (VAT) on an item, you do not need to declare it, with the exception of banned items (like meat, etc).
If you purchased the item duty-free (got a tax form, customs validation, then got cash back or mailed a form to return duty to your CC, etc), the personal exemption is 800 USD per person. If you are traveling as a household (spouse, kids, etc), then the exemption amounts are combined. For example, if it is you and a spouse, personal exemption is raised to 1600 USD for the household.
How does this work in practice? Let's say you got a 3500 euro Chanel bag, where 500 euro of that amount is the VAT (making up numbers, the VAT amount is dependent on the country). You apply to get a portion of that 500 euro back, less processing fees. Using a conversion rate of 1 euro to 1.1 USD, the bag is worth 3300 USD without duty.
On your entry form back into the US, you check "I have goods to declare". Assuming you are traveling with a spouse and have NO OTHER duty-free items, duty owed is calculated as follows:
3300 - 1600 (exemption allowance) = 1700 USD on which duty is owed
The next 1000 USD is charged at a flat 3%. I'm not sure if this is "combinable" with all persons in the household. Assuming it is (aka, up to 2000 USD):
1700 * 0.03 = $51 owed to customs
So you can see if you buy many luxury items, it is quite easy to go over personal exemption. There are people that fail to declare - some of them get through customs with no issue, but if you get pulled over for secondary inspection, you are hosed and will owe customs and likely be fined as well (plus other implications if you have Trusted Traveler status, etc).
Better to declare than not - if you do not owe much, customs is usually reluctant to do the paperwork and will just let it go.
ASSUMING YOU ARE IN THE US:
There is no cap to what you can spend personally (
If you paid tax/duty (VAT) on an item, you do not need to declare it, with the exception of banned items (like meat, etc).
If you purchased the item duty-free (got a tax form, customs validation, then got cash back or mailed a form to return duty to your CC, etc), the personal exemption is 800 USD per person. If you are traveling as a household (spouse, kids, etc), then the exemption amounts are combined. For example, if it is you and a spouse, personal exemption is raised to 1600 USD for the household.
How does this work in practice? Let's say you got a 3500 euro Chanel bag, where 500 euro of that amount is the VAT (making up numbers, the VAT amount is dependent on the country). You apply to get a portion of that 500 euro back, less processing fees. Using a conversion rate of 1 euro to 1.1 USD, the bag is worth 3300 USD without duty.
On your entry form back into the US, you check "I have goods to declare". Assuming you are traveling with a spouse and have NO OTHER duty-free items, duty owed is calculated as follows:
3300 - 1600 (exemption allowance) = 1700 USD on which duty is owed
The next 1000 USD is charged at a flat 3%. I'm not sure if this is "combinable" with all persons in the household. Assuming it is (aka, up to 2000 USD):
1700 * 0.03 = $51 owed to customs
So you can see if you buy many luxury items, it is quite easy to go over personal exemption. There are people that fail to declare - some of them get through customs with no issue, but if you get pulled over for secondary inspection, you are hosed and will owe customs and likely be fined as well (plus other implications if you have Trusted Traveler status, etc).
Better to declare than not - if you do not owe much, customs is usually reluctant to do the paperwork and will just let it go.
Years ago (in the early days of tpf) a woman who used to be a mod posted what happened to her and her friend when the failed to disclose their purchases and got caught. It was a huge embarrassing nightmare.
I'm in the US and interested in getting a designer bag in Europe at the end of the year. I'm going to be in Berlin and Vienna, the Seychelles, and then Rome and Florence before heading home. Since I'm leaving the EU twice within 2 weeks, I could either:
1) buy it in Berlin (or possibly Vienna) and drop off forms at VIE or FLR or
2) buy in Rome (or possibly Florence), off the tax forms at or before FLR [all my connecting flights are at non-EU airports]
I know that I'd get a higher VAT refund in Italy than in Germany or Austria, but I'm taking into account other factors. Mainly, is generally better to get the VAT refund on your credit card or in cash?
I've heard the argument that you can't spend the Euros/foreign currency at the airport as your heading back home, but if I were to buy the bag in Berlin and do all the customs at/before VIE, I can spend the refunded cash during the Italian leg of my trip. We also go to Europe quite often, so don't mind taking home some Euros and using on a future trip.
I also know that there is a fee charged for instant cash refunds, but am weary of an unfavorable [to me] exchange rate Global Blue or Premier Tax Free is using to get/convert a Euro refund on my USD credit card.
Last year, I bought a bag at Printemps in Paris, went to the tax refund office in the store, and took the cash. We spent it during the remainder of our stay and got the customs stamp (and I believe dropped off the forms) at CDG.
1) buy it in Berlin (or possibly Vienna) and drop off forms at VIE or FLR or
2) buy in Rome (or possibly Florence), off the tax forms at or before FLR [all my connecting flights are at non-EU airports]
I know that I'd get a higher VAT refund in Italy than in Germany or Austria, but I'm taking into account other factors. Mainly, is generally better to get the VAT refund on your credit card or in cash?
I've heard the argument that you can't spend the Euros/foreign currency at the airport as your heading back home, but if I were to buy the bag in Berlin and do all the customs at/before VIE, I can spend the refunded cash during the Italian leg of my trip. We also go to Europe quite often, so don't mind taking home some Euros and using on a future trip.
I also know that there is a fee charged for instant cash refunds, but am weary of an unfavorable [to me] exchange rate Global Blue or Premier Tax Free is using to get/convert a Euro refund on my USD credit card.
Last year, I bought a bag at Printemps in Paris, went to the tax refund office in the store, and took the cash. We spent it during the remainder of our stay and got the customs stamp (and I believe dropped off the forms) at CDG.
It is generally better to get your VAT refund on your credit card because the processing fees for the instant cash is higher. Either way, the VAT is returned as local currency (euro).
For reference, my US credit card has no foreign-transaction fees. Assuming you have the same, charging (and returning) in local currency will always net the best exchange rate compared to anything you can get at a currency exchange, ATM, etc. The tax refund company refunds in euro and my credit card processor does the currency exchange. If your card has a forex fee, it is probably 3%/transaction (check with your bank), whereas instant cash fees tend to be 5-10% or higher.
In my experience, in the EU, it is easier to do a tax refund when the purchase is done in the same country as your final EU-departure airport. Reason being is that they usually have automated systems where you scan a barcode (dependent on country) instead of having to actually get a customs stamp, dropping in the mail, crossing your fingers, etc. Especially when something has to be dropped in the mail, make a copy of your stamped documents by taking a pic with your phone, etc.
On the other hand, I don't have too much experience with the refund at FLR (small airport which I've been to, but in-Schengen), but my experience at Milan/MXP and Italy in general is that the refund queues can be chaotic. No personal experience at VIE, but perhaps the queues there are better.
Currently in France and thinking of doing some shopping. I’m trying to get an idea of what customs will be on my purchases. I will definitely go over my allowed amount. I’ve tried looking in the US customs site but it can’t really seem to find the answer. Thanks!
Never came back with more than my allowance, but this link should help. Depending on the item(s), a different tax rate is applied. Tax rates are based on what the item is, its materials, and country of origin. Certain countries have lower rates or exemptions. I would calculate at full tax rate, unless you want to look up what the US has on trade agreements and tariffs with respective countries. A quick browse shows that the highest tax rate towards handbags is 10%, so if you'd rather not browse the website or look up the table (not phone friendly), assume 10% for your calculations.
https://dataweb.usitc.gov/tariff
https://dataweb.usitc.gov/tariff
In the past, I never declared anything and I was never stopped by customs (we are talking dozens of trips to and from Europe). Over the past couple of years, I started to declare the goods I purchased abroad and I was either waved through without paying taxes or charged a low rate like 3%. The most I paid was around $200 for a HAC Hermès bag last summer (which I think cost around 10K, but I don't remember the exact purchase price). In my experience, custom agents are super nice and they really appreciate people being honest and declaring their goods.
PS: The reason I started declaring the goods was, in part, because I feel that I can't complain about the shameful state of the roads in this country or the blatant lack of funding for public education and at the same time avoid paying taxes I owe.
Thank you!In the past, I never declared anything and I was never stopped by customs (we are talking dozens of trips to and from Europe). Over the past couple of years, I started to declare the goods I purchased abroad and I was either waved through without paying taxes or charged a low rate like 3%. The most I paid was around $200 for a HAC Hermès bag last summer (which I think cost around 10K, but I don't remember the exact purchase price). In my experience, custom agents are super nice and they really appreciate people being honest and declaring their goods.
PS: The reason I started declaring the goods was, in part, because I feel that I can't complain about the shameful state of the roads in this country or the blatant lack of funding for public education and at the same time avoid paying taxes I owe.
Hi All, I am traveling to Paris in October and I have gathered from previous posts that the best price on Cartier is at the airport. My question is regarding declaration when re-entering the U.S. - if the item is duty free, how do I calculate the amount of tax I would need to pay upon declaration?
Hey guys
Ordered a Gucci bag from FRMODA (and Italian retail website) and I was told I will have to pay customs myself. How much would it cost from import designer bags at 1500 from Italy to the US (specifically California)? I'm so scared of getting hit with a 500 bill or something aha...
Thanks gurlsss
Ordered a Gucci bag from FRMODA (and Italian retail website) and I was told I will have to pay customs myself. How much would it cost from import designer bags at 1500 from Italy to the US (specifically California)? I'm so scared of getting hit with a 500 bill or something aha...
Thanks gurlsss
Has anyone done VAT refund at the Vienna airport? My flight is very early (7AM) and I’m worried that the customs office won’t be open for me to get my stamps.