The all new blog post you’ve been waiting for… I got HUNDREDS of direct messages from you all over on Instagram asking for every single detail of designer shopping internationally and saving MAJOR money when doing so. With that, I thought it would be easiest and much more beneficial to dedicate an entire post to this very topic so you can reference it when needed and hopefully it’ll help the process seem less daunting so you can take advantage next time you travel out of the country.
Let’s start at the top with a breakdown on how to save money…
VAT stands for value-added tax… it’s a fee associated with shopping in the EU [but more than 150 countries around the world also participate: the current VAT rates for all countries in the EU are here and rates for all other countries can be located here]. It’s a sales tax paid by consumers, but it doesn’t exist in the US. Only visitors to the EU/and other participating countries are able to qualify for a VAT refund [which makes it a DEFINITE perk to shopping in another country when it comes to designer + luxury purchases].
Keep in mind the VAT rate can vary between countries and it ranges from around 15% to 22% [for us and our latest trip, Italy’s VAT is 22% currently]. If you’ve never heard of VAT, just be sure to chat with a sales associate about it on your next shopping trip abroad, and they can easily fill you in on the specifics of what to do = yes it can seem overwhelming at first, but I assure you it’s worth it to get your refund.
If it’s a luxury item, it should apply… this includes clothing, shoes, accessories, cosmetics + skincare, jewelry, art and my favorite = handbags!! They MUST be brand new items as used items cannot be claimed and in some instances you will be asked to show the receipt, bag/box, etc when you go through customs/claim your VAT refund so be sure to keep all necessary items when you make your purchases. Each transaction has to be over a certain amount as well and that varies by country… from my personal experience, my transactions had to be over 100 Euro. And another detail to note: all VAT refund requests must be made within 3 months of your visit—so it’s one of those things to tackle off your to-do list as soon as possible.
PRO TIP | it works best when you have ALL items from a single store on one purchase so you’re not having to keep up with as many receipts and coordinating info and it’ll make your VAT refund process easier!
My biggest piece of advice would be to bring your passport with you when you’re shopping… I’ve had to go back to the hotel before to grab this in order to get a VAT refund, so save yourself time + energy and just make sure you have it in your possession at all times [especially if you make an impulse purchase like some of us] #sorrynotsorry.
When you check out, be sure to ask the sales associate for the VAT refund paperwork [usually it will come in a separate envelope with the associated details and printouts included]. FYI: some stores can process the VAT refund for you in-store [department stores often have a dedicated space or kiosk for this], so be sure to ask—which can save time at the airport on your departing day!
Most retailers use a third-party business to process VAT refunds… the biggest and most well-known is Global Blue [Louis Vuitton, Dior, Prada all use this one], but we found that other brands use different companies to accomplish the same thing [Planet, Premier Tax Free, etc.].
On the day you depart your final destination, be sure to add in up to an hour for the VAT process at the airport. For us, we used expedited service through our travel agency so we were able to jump to the front of the line, which proved to be super beneficial in saving us time—there was a LONG line of people waiting to get this process completed since summer is such a busy time for tourists + travel.
There are usually multiple kiosks for you to scan your documents [your passport + associated receipts from everywhere you made a luxury purchase valid to receive a refund], but I’ve seen bottlenecks in getting assistance from someone, so just give yourself extra time in case.
Once you make your way to the front of the line, it’s a fairly simple process and doesn’t take too long—but be aware you may have to show these purchases to customs agents, so keep them in your carry-on bag, too. Some airports have a dropbox so you actually won’t interact with a person, but every country and airport is different! You’ll then choose your refund delivery preference [cash, direct credit back to your credit card, etc.], and you can expect to get the refund back within 5–7 business days. Just be sure to keep all your paperwork in case you have to follow up and/or file a claim to get your money back!
PRO TIP | Make sure you input your email address when you’re going through the VAT process = they will then email you when the process is complete and when your refund is headed your way!
If you’re like me, it’s easy to get allured into buying something at the airport when you’re waiting for your flight. For instance, when we were leaving Rome I just happened to walk into the Gucci store and found the perfect pair of sunglasses I had been eyeing for quite some time. Normally, I am not a designer sunnies girl because I feel like I am SO hard on my eyewear, but I gave in and I’m so glad I did… the great part of buying duty free is you get the VAT fee waived as long as you can show them your ticket for your flight! So with the VAT discount, I was able to score these Butterfly Frame Sunglasses for $303 instead of the retail $430 price tag! So using my trusty girl math scenario, they were basically free. HAHA!
Surprisingly, it had been a LONG time since I bought a new designer handbag, so I had my eye on a few finds… but I ended up buying two bags that instantly grabbed my attention!
My first purchase was this gorgeous Louis Vuitton Mini BumBag in Cream Monogram Leather. I have a similar style in the iconic LV canvas and I use it so much, I knew I wanted another one = but in a dressier style. I absolutely ADORE the colorway of this one and know I can use it year-round. With dual straps in leather and gold, it packs a punch in a smaller silhouette and will be great for travel, too. I paid 1,925 euros which equates to about $2,250 USD, and then after the VAT refund, I ended up paying $1,755 USD [saving 495 Euros]. So see… girl math is working really well here, and I definitely took advantage of DISCOUNT luxury shopping!
And because I had a birthday coming up, the hubby was generous and said to pick a special bag to celebrate… I had my eye on this GORGEOUS Dior Jolie Top Handle Bag in Powder Beige for a very long time and once I saw it I KNEW it was the bag for me. Funny enough, I had intended on buying a black bag this trip and obviously that didn’t happen = but this one is super versatile with lots of ways to wear with both shoulder + crossbody straps included and the pearl accent detail makes it even more feminine! This one had a retail price of $5,400 USD/4,653 Euros, but with the VAT refund it ended up with a grand total of $4,212 USD [saving 1023 Euros] = it makes a HUGE difference and I know this beauty is a dream bag I will use for years to come!
I also bought a few family friends Longchamp bags they requested and those were super easy to transport home as a thank you for watching our sweet Tucker and holding down the fort at home, too.
By this point, you may be thinking that’s WAY too much effort for a few extra bucks… to that end, you’re not wrong… sometimes the juice isn’t worth the squeeze, so I’d recommend only getting a VAT refund on larger purchases like luxury items OR a group of items at one store. Here are a few more tips that may help as well:
- Buy Something Made in the Country You’re Visiting | Purchasing a Louis Vuitton handbag in France will save you significant $$$ compared to buying the same bag in the US
- Travel with Family | the US allows up to $800 per person of duty-free goods so if my family of four travels together, we can bring back $3,200 worth of items tax free
- Watch What You Pay With | For instance, pay in Euros in Europe and/or use a credit card with no foreign transaction fees so you don’t pay unnecessary charges!
And that’s the scoop, friends! I hope this post takes the mystery out of VAT refunds and shows you just how worth it it can be to shop luxury goods when you’re out of the country! Whether you’re planning a dream trip or already have your sights set on your next designer purchase, keep these tips in mind and thank yourself later.
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