Tax exemption: how to benefit from it when traveling in the European Union?

Shopping in Europe can be highly advantageous for travelers living outside the European Union. In fact, they can benefit from a refund of value-added tax (VAT) on certain purchases made during their stay. This article explains how to take advantage of this opportunity during your stay in France.

The principle of tax exemption: what is it?

For travelers residing outside the European Union, the tax refund is entitled to claim a refund of VAT on purchases made in the EU and brought back in their personal luggage on their return. In France, for example, VAT represents 20% of the price of goods.

Conditions of eligibility

Several conditions must be met in order to benefit from the tax exemption:

• Residing outside the European Union
• Make purchases of at least EUR 100.01 per store per day
• Taking purchased items with you in your personal luggage when leaving the EU

You must provide proof of residence outside the European Union, such as a passport showing your address abroad, or a certificate of registration in the register of French nationals established outside France if your French passport shows a French address.

The tax-free procedure: steps to follow

Payment and receipt of sales slip

When you make a purchase, you pay the price inclusive of all taxes. Then, the retailer or his customs-approved partner issues you with a electronic sales note for sales without VAT, which will be used as the basis for your claim.

Validation by customs

Before leaving the EU, it is crucial to have this slip validated by customs:

• Present it to the customs authorities at the airport before checking in your luggage.
• Make sure keep purchased goods with you for any potential verification by customs officials.

Once validated, this document will activate the VAT refund process.

Obtaining reimbursement

There are two options for reclaiming VAT:

1. Immediately at the airport at dedicated kiosks (subject to local conditions).
2. By bank transfer after returning the validated slip to the address indicated by the merchant or via an intermediary company.

It is important to check whether administrative expenses are applied by the seller or intermediary company, and how much they are.

Tips for maximizing your refund

Accumulate purchases

A smart way to reach the minimum threshold of EUR 100.01 is to combine your purchases from the same merchant or online via customs-approved operators. This method facilitates compliance with regulatory requirements and optimizes your refund claim.

Compare tax-free operators

Processing fees vary from operator to operator. Some charge lower commissions than others. Make a preliminary comparison between different service providers can significantly increase the amount recovered.

Practical examples of travellers

Let's take the example of John, an American who usually lives in the United States, but regularly travels to France on business. During his stay, he buys various items for a total of EUR 300. Thanks to the tax-free procedure, John will be able to reclaim around 50 EUR in the form of a VAT refund, considerably reducing the total cost of his purchases.

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