My husband and I will be traveling to Italy, Croatia and Greece soon. It's our first time traveling outside the U.S. I've read some about VAT and don't really understand what that's all about. Also don't understand about duty-free. Can somebody help me?
Thanks! Lin
Posted by
Oak Park, Illinois
4535 posts
VAT is Value Added Tax - essentially a sales tax on consumer goods and services. It is automatically added and almost everywhere in Europe the price on the item is the price you pay (unlike the US where tax is added at the register). If you buy something that you will not use or consume in Europe, such as an expensive gift, there are ways of getting a VAT refund. Do a Google search on how that process works, but it requires paperwork and cooperation from the merchant. Duty Free simply means there is no VAT added. Some shops at airports are allowed to sell duty free, but probably have higher prices due to the cost of doing business in airports. Some people swear by it, others consider it of no value. Some cruises and ferries also are allowed duty free shopping since they travel in international waters.
Posted by
OP
St. Louis, MO, USA
23 posts
Thanks, Douglas. That makes it easier to understand.
Posted by
Northamptonshire, England
32809 posts
Duty Free has changed a lot. No longer a way for travelers to save on duty within Europe it is now a vehicle for perfume and electronics and alcohol sales to travelers. I'm not sure that VAT is excluded at the Duty Free shops... It is my observation that while the Duty may be left out the prices often are raised to compensate. In normal department stores and specialist stores in Europe. If you make sufficiently large purchases you could claim a form which you can turn in at the airport for a refund of VAT paid. That's only VAT, as far as I know, and not Duty.