Would someone explain how VAT works, and if I can recover any of it during/after my upcoming trip to France? I recall being able to recover some VAT after a trip to Prague and Budapest many years ago, but don't have a clue how things work now.
Merci!
If I recall correctly, you can't recover tax paid for hotels and restaurant meals, which comprise the overwhelming majority of tourist spending. I believe the recoverable tax is limited to stuff you buy, and when I've looked into it previously, it simply wasn't worth the trouble. It's been a while though, I'm sure others have looked into it in more detail and more recently.
VAT is not recoverable on things you consume in-country , i.e., hotel, food, car rental. You have to leave the country with the merchandise in order to claim a VAT refund. Which means that you have to 1) Get a VAT refund form from the merchant(s) from whom you bought the merchandise. 2) At the airport, go to the VAT refund counter, show the agent your merchandise, and submit your form. Which means you cannot pack the merchandise in your checked luggage. Every country has different rules as to how much you have to spend in order to get a refund, if the purchases have to be at the same store, and if they have to be on the same day. Frommer's guidebooks do a good job of explaining it all. Or just ask a sales clerk at a store that displays that country's VAT refund logo.
Some stores will ship the merchandise direct to your home AND take care of the VAT form. This is because if they ship to the US, the merchandise has left the country immediately, qualifying it for a refund.
I've always found that the government creates so many hoops to jump through to actually get the refund - that it's usually not worth the effort. However, if you plan to purchase a really expensive item like we did (violin) then yes, it's definitely worth the hoop-jumping to get that refund!
I agree with the posters above. Unless you are taking or sending home somethig that is really expensive, it is not worth the trouble. By expensive I would say at least 400 euros. From France, if you see any refund at all, you will probably get a check in euros drawn on a French bank. Most local banks will charge you $30 or more to process such a check. Enjoy your trip. France is great but VAT refunds are not.
Yes, I jumped through all those hoops once when I bought a very expensive kilt in Scotland. My refund was $3.25.
Hi Sue
If you've managed to reclaim VAT in Prague then frankly we should be asking you questions.
I tried in Prague and admit that I gave up.
The only people who seem to be able to navigate the VAT minefield are the companies who ship stuff home for you, but then you have to pay them for the shipping - so you are no better off.
The whole thing is like a novel by Franz Kafka.
Thanks everyone for your response and helpful hints. I don't think I can afford to buy anything expensive - esp. in France, so I'm not going to worry about it!!
Sounds like a lot of trouble for saving the cost of a beer.....
I have a European bank account so it is a bit easier for me to reclaim the VAT but still quite a bit of work. Though at 19% VAT it can be worthwhile. Here are my steps:
I get export forms from an office supply store before doing any shopping. For each purchase I need one form filled out by the merchant (item, price, VAT, address of store) and fill in my own address and passport number.
At the airport I go to the customs office first, show my suitcase with the purchased items (usually they don't make me open it) and get those export forms stamped. Then I check in the suitcase.
At home, I mail the stamped export forms back to the merchant and include the banking information for my European bank account.
The merchant transfers the full VAT refund into my account. And I use the money on my next trip :-)
This method works with any store even in small towns that don't get to see tourists. I got refunds for my glasses (I always buy frames in Germany) or a DFB tracksuit for my daughter, a collection of knight figures by Schleich, Erzgebirge Christmas deco ...
My last trip was a very short 5 day visit over a weekend with only one afternoon of shopping and NO preparation at all. So I only went into 2 larger chain stores. Bought 100 Euros worth of DVDs in one and clothing in another. Both stores had VAT Refund forms at the cash out and filled those out for me (they are different from the export forms above and usually not available in smaller places). With these forms and my suitcase I went to the same customs office at the airport and got them stamped. Then I went to the VAT Refund office next door and got a cash refund. That one gives you only 50% of the VAT you spent and they keep the rest. Still, it was enough to buy a book and a coffee while waiting for my flight.
