Thank you so much for your reply! My husband is flying through Heathrow soon and said he would shop for me IF I researched the process and gave him specific instructions... lol!
Tips/Advice for customs, VAT, etc.
- Thread starter mercx5
- Start date
Thank you so much for your reply! My husband is flying through Heathrow soon and said he would shop for me IF I researched the process and gave him specific instructions... lol!
When you arrive back in the U.S., you will be asked whether you purchased goods worth more than $800 while abroad. In some airports, the question is asked at a little electronic kiosk where you have to indicate "YES" or "NO" to that question and a couple of other questions. In other airports, it might be a hand written form that you fill out. (I think all airports are eventually going to the kiosks so that your answers are recorded.) After answering those questions, a receipt is issued by the kiosk that you take with you to Passport Control and then on to the luggage carousels. After picking up your luggage, you take that receipt, your luggage and your passport to the Customs agent who is the last stop before you are released back into the country. They take a look at the receipt and your passport one more time. Sometimes, even when you answered "yes" to the question of whether you purchased $800 or more abroad, they just waive you through. Other times, the agents will ask more detailed questions and will send you to another agent who will examine your receipts and calculate how much you owe and process your payment. Sometimes, they pull people out of line who answered "no" to the question and search every bit of their luggage. (I've seen it happen.)
Generally, the first $800 is tax free. The next $1,000 is taxed at 3%. For handbags, amounts over $1,800 are taxed at 6%. (Other goods have different tax rates so it can get complicated. By the way, there is no tax on food items.) This limit applies per person and you can combine these amounts for all the people in your traveling party. So, if you are traveling with your DH or SO or your mother or whoever, you can combine these amounts. So, for two people, the first $1,600 is tax free, the next $2,000 is taxed at 3%, and everything over $3,600 would be at 6%.
My experience has been that if you are honest, they treat you extremely well. When I have purchased more than $800 worth of stuff, I have always declared it and they have never searched my luggage. They take your word for what you have purchased abroad and calculate the duty based on that. A couple of times, they've waved me through and I paid nothing even though I did exceed the limits. The last time (just about a week ago) was hilarious. I was fully prepared to pay several hundred dollars in customs tax/duties when returning to the U.S. I did a lot of shopping for Christmas, for friends, for myself while in London. I declared at the kiosk that I had purchased more than $800 worth of items. At the last stop, the Customs Agent asked me "what did I purchase?". Well. I told him that I bought biscuits and tea and chocolate and re-usable bags from Fortnum & Masons and Harry Potter souvenirs for my neices and nephews and, oh, there was a . . . and he interrupts me and says "Welcome Home!" He never let me get to the Louis Vuitton and Chanel handbags in their original boxes. I stood there for a second and the DH grabs my arm and says "thanks, great to be home!" So, no customs tax charged.
Again, thank you so much for taking the time to explain this! Very detailed and clear!
question about VAT in Netherlands.....
it is about 12% back from what I've read?
how easy is it to claim VAT at Schiphol airport-i have read stories that it is very difficult, confusing, people often don't get their refunds?
thinking about buying a gucci bag that is $1200 here in the states
if i successfully got VAT refund after purchasing in Netherlands it would come to $900......
is it worth the trouble?
it is about 12% back from what I've read?
how easy is it to claim VAT at Schiphol airport-i have read stories that it is very difficult, confusing, people often don't get their refunds?
thinking about buying a gucci bag that is $1200 here in the states
if i successfully got VAT refund after purchasing in Netherlands it would come to $900......
is it worth the trouble?
Could someone help me about VAt refund? You sent everything they required and forgot to sign....
Hi, sorry for quoting your comment back from 2015 but what do you mean by mailing the receipt to yourself?
When you buy way too much, send it via mail to yourself so if your things are searched by custom agents (happens very rarely), agents can't prove your purchases are new. I also ditch the boxes when I buy abroad because 1) who cares? 2) if I want one I can always ask my local boutique.
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.
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.
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.
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.
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.
