This post gives me a little nostalgia, since I always loved doing designer shopping recaps after Paris trips in my early blogging days! Although a few things have changed since, the designer shopping in Paris still cannot be beat, both in terms of selection and pricing compared to here in the US. While I didn’t make any big purchases this visit, I did plenty of window shopping and wanted to share some info for anyone who might be visiting!
Why is it cheaper to buy certain designer goods in France?
A few elements that contribute to the savings:
- Lower retail price in Euros (especially if the brand is based in Europe)
- Favorable EUR / USD exchange rate
- VAT refund
- No US state sales tax
Conversely, your savings may be reduced by a few of these factors: any currency conversion fees on your credit card, processing fees on your VAT refund, and taxes that you may owe US customs on your purchases after flying home. As a US-resident, the first $800 per person of overseas purchases is exempt from taxes. If you’re traveling with family members, you can pool together that exemption amount.
What is a VAT refund & how do you get it?
I’ll let this article answer that in detail! Generally speaking, if you buy something in Europe but are not a resident there, you can get a tax refund of on qualifying purchases when you leave the country. In France, the VAT refund is 10% to 12%. In order to qualify:
- Purchase needs to be made at a store that offers VAT refund paperwork. Not every store does this, but most of the major luxury goods boutiques did for purchases over $100.
- At checkout, have your passport in hand. The store will use it to prepare the refund paperwork, and might require the name on your credit card to match what’s on the passport.
- When departing the country, get the refund paperwork validated at…
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