All you wanted to know about Tax Free
Tax Free &# 8211; This is the refund amount of value added tax. VAT returns to the purchase made by foreign citizens with the opposite crossing the border of the country in which they were acquired.
There is one subtlety here if you want to return VAT for purchases, you must constantly live outside the country, where Tax Free. In the case of Europe, you must reside in a country that is not included in the EU. If you have a residence permit, work permit or any other permit for staying in one of the EU countries for 6 months or more, then, unfortunately, to make a return tax you can’t. Long-term tourist visas for this restriction do not include.
Thanks to Tax Free, you have the ability to return from 7 to 23% of the amount of goods, depending on the VAT size in the country where you have made purchases. In each country, VAT (or VAT) rates are different, for example:
- Czech &# 8211; twenty%
- Finland &# 8211; 23%
- France &# 8211; 19.6%
- Italy &# 8211; 21%
Unfortunately, this does not mean that with VAT 20% bought goods for € 100, you will get back € 20. It should be understood that VAT is a tax that is added to the price of goods, but € 100, this is the price already with VAT, in other words, € 100 is 120% of the price of goods.
So how to calculate Tax Free?
Everything is very simple, the amount of goods is divided by 120 and multiply in the amount of VAT. Calculate, for example, VAT from purchases by € 100 in the Czech Republic, where value added tax is 20%:
(100/120) * 20 = 16.66 euros.
In Finland, VAT is 23% and the calculation would be as follows:
(100/123) * 23 = 18.69 euros.
But this is not the ultimate amount. Tax Free Return is made using intermediaries, the most famous of them &# 8211; Global Blue. They do not work for free, and from each return they take a commission, its size depends on the amount of shopping and country.
For example, if in the UK you spent 195 pounds, then VAT will be:
195/120 * 20 = 32.5 pounds
In this case, Global Blue will take a commission of 5% of the purchase amount (not from the price of goods without VAT, but from the price you paid), t.E. from 195 pounds. In this case, the Commission will be &# 8211; 9.75 pounds.
Due to rounding, which is always made not towards the client, you will receive only 21.5 pounds, t.E. Approximately 11% of the cost of goods.
As a rule, the greater the amount of purchase, the lower the percentage of the commission. If you made purchases by 50 pounds, the commission would be 10% of the cost of goods.
Calculate the exact cost of Tax Free, with all commissions, you can on the Global Blue website.
How to arrange Tax Free?
Tax Free registration can be divided into three simple steps:
Step 1: Make a receipt or check TAX FRI
Making purchases in stores, ask the seller to issue a receipt of Tax Free. It is advisable to take a passport with you. If it is not at the time of registration, do not forget to make all the data on your own.
Not all stores agree to make a receipt of Tax Free without a buyer passport.
How to fill the check tax free?
The form must be filling in up capital Latin letters . Check that graphs are filled with your passport number, name and surname (as in passport), address, email. by mail and signature. Pay attention to the fact that a check must be attached to the full amount of purchase.
Not in all stores can be issued a return of VAT. Pay attention to the Special Tax Free Embloma or check with sellers. There is another moment to pay attention to, you can return taxes only if the amount of purchases exceeds a certain limit, t.E. The minimum amount from which you can return Tax Free. In Finland, it is 40 euros, in the UK 30 pounds, in Italy &# 8211; 154.94 Euro and t.D.
At the same time, you must make purchases in one store for the 1st day. For example, you made purchases in Italy in the store H&M in the amount of 160 euros and in Zara at 140 euros. Return Tax Free, you can only shop in H&M, T.To. 160 euros More installed limit at 154.94 euros. So if you see that you miss a little, then buy something else.
Note that VAT for food is much lower, and is usually 4-5%. Depending on the country, the reduced VAT rate can also be applied to books, children’s shoes, clothes for babies, etc.
In some countries, VAT for food, tobacco products and books are not refundable.
Tax Free with food and non-food products are considered separate. So, if you lack 10-15 euros, buy not foods on them, but any non-food products (technique, clothing, accessories and t.D.).
It is most convenient to shop in large department stores, such as Printemps, Galerie Lafayette in Paris, Harrods and Selfridges in London and T.D. In such stores, the amount of VAT will be calculated for all purchases in the department store, and not for specific departments and shops. But just in case, before making an expensive purchase, ask about Tax Free from sellers. For example, in Printemps Department Store, you can get a return tax upon purchases in all departments, except Louis Vuitton.
In rare cases, store employees do not check out one of the companies on the return of Tax Free, but invoice. It also needs to be stamped at customs, but you can only get the store where you have made purchases (personally or by sending by mail). The big plus of this method is that you can return the entire VAT without the Commission of third-party companies.
Step 2: Put the print at customs
When you leave the country, come with shopping, checks and a passport to a custom rack, where in the receipt will be stamped. If you continue traveling in Europe, Print must be put in the last stay in the EU.
If you leave the country by plane, then come to the airport in advance, t.To. At customs may be queues (preferably 1 hour before the start of registration). Also keep in mind that customs does not work around the clock, and if you have a late flight, then there is a chance to not put the print and, accordingly, not to return the money. In this case, you need to go to the airport in advance, before closing the customs (usually until 21:00, but at some airports before).
Customs officer may ask you to prevent purchased things. They should be Not worn (not used) and with shop labels, Do not break them down and price tags yet put a stamp at customs. Do not pack purchased things deep into the suitcase, fold them separately so that you can quickly show them for inspection.
Step 3: Clear Tax Free Receipt
You can cash the receipt only if the customs stamp stands on it. Money you can get cash or on a bank card.
What to do if you have not put a stamp at customs?
Stamp You have to put, as a rule, within 3 months from the date of purchase (not counting the month of purchase). Theoretically, you can put it on your next trip, but remember that the customs officer may ask you to present things and, as we have already written above, they must be not worn (not used) and with shop labels.
Where you can get money?
1. In the Tax Free Cash Refund item. You need to prevent receipt and passport. As a rule, items are located at the airport, but sometimes in the center of large cities. The full list of VAT refund points is on the company’s website through which the tax fri.
If you decide to return the money in Tax Free Cash Refund in the city center, then the return procedure will be a bit different. In the office you will be returned with money (cash or on the map) and will give a check. Upon arrival at the airport, you should get a boarding pass (register for flight) and without passing the luggage (a special tag sticks to it) go to the customs service, where you put a stamp and look after. Lailed check Lower to a special box if you do not do this, then the money received will be written off from your card (it is sure to scan in the office).
2. Seal the receipt in envelope and omit into a special Tax Free box at the airport. The envelope is attached to the receipt of Taks Free (if there is no, then the customs officer or the information plate near the box will tell you how to make an envelope from the check). Do not forget to enter the data of your card, t.To. Money will come to her.
Pay attention to the amount of currency conversion. In accordance with the RULD Rules of VAT: for non-cash compensation in a currency different from the currency in which the Tax Free check was set, the course is applied ; Sales ; European Commercial Bank, plus a commission for converting currency in the amount of 3-5%.
Cash will be converted to local currency or in the currency in which the credit card account is conducted.
3. In Taks Free Office in Russia or in one of the authorized banks. In the office you can cash off only ; Global Blue ;, and in a bank, checks of almost all popular taxes Free companies: Global Blue, Premier Tax Free, Tax Free Worldwide, Innova Tax Free, Euro Free Shopping and DR. A complete list of partner banks, you can find on the company’s website that made TAX FREE.
To return taxes, you need to present 2 passports (ordinary and traveling) and checks with a country customs stamp, where a purchase or any of the EU countries has been made (if purchases are committed in the territory of the European Union). Money will be returned in cash in rubles at the rate of the Central Bank on the day of payment of the check, minus the commission for the processing of each receipt. As a rule, about 2.5 euros for receipt.
You can only return money for a certain time that depends on the country and the intermediary company. For example, Global Blue and Tax Free Worldwide checks, decorated in Germany, are charged for 4 years, and PREMIER TAX FREE checks &# 8211; 3 years. The most uncomfortable in this respect are the checks of the Italian company New Tax Free, they are valid for payment of only 60 days.