I have heard many times that purchasing a Chanel or Louis Vuitton bag in France was cheaper than in the U.S. even after you calculate the exchange rate. Does this still hold true once you pay duty? Also, is the VAT included in the price shown on the tags in the stores? I would really like to treat myself to a beautiful French designer bag while in Paris next month but want to have an idea of what I would be saving/spending (duty) before I take the plunge. Anyone know??????
Posted by
New York, NY, USA
11294 posts
VAT is included in prices shown on price tags. If you're buying enough at one store, you can get the VAT refunded, which can make for an even better bargain. I assume the Chanel and Louis Vuitton stores know how to process the VAT refunds. As for duty, I quote from the US Customs and Border Protection Site: "For instance, if you are returning from countries other than the Caribbean countries or U.S. insular possession you are entitled to an $800 duty-free exemption and the next $1,000 worth of the goods you purchased is subject to a flat rate of 3%. If the value exceeds $1,800, the remaining duty will be determined based on duty rates in the harmonized tariff schedule, which are generally between 0-10% (except for clothing and textiles, which can be much higher, up to 25%)." Here's the link (won't hotlink):
https://help.cbp.gov/app/answers/detail/a_id/454/related/1 As you seem to be aware, you have to price the item in the US before you go, so that you know if you are getting a deal or not.
Posted by
OP
Seattle, United States
7 posts
Thank you so much! You info really helps.
Posted by
Atlanta, Georgia
565 posts
I've heard it too but have yet to see it work out. After the VAT refund and exchange rates it seems to me to be about the same...except in Paris, where it seems more expensive. There is a large market of wealthy Asian tourists who keep the market of luxury goods at retail price. If you are going to buy it anyway, buy it in Paris! Most likely the same $ spent. I used to buy shirts from a french shirt maker in Paris and now they are in many cities in the US....and cheaper :)
Posted by
L'Occitanie, France
10623 posts
I've gotten the tax refund a few times. Many of the luxury brands have boutiques inside the Printemps and Galleries Lafayette department stores, so you can group your purchases in one place. There is a minimum amount that must be reached before you can apply for the refund. Once you are finished making your purchases, you go to a special counter inside the store to take care of the tax refund. This must be done on the same day. If you want to shop a second day, you need to meet the minimum purchase limit again and apply for another refund. Try to get there before the busloads of Asian tourists lining up for these boutiques. Only a few people are admitted at a time.