Travel Forum

how come when americans come to europe they are entitled to get tax refunds on all their purchases-which adds up, thats for sure yet when i went over to america for 3 months when i asked sales assistants about tax refunds they looked at me blankly!!!! Its driving me crazy thinking of all the tax money i have given them in 3 months!!!!

how come when americans come to europe they are entitled to get tax refunds on all their purchases-which adds up, thats for sure yet when i went over to america for 3 months when i asked sales assistants about tax refunds they looked at me blankly!!!! I

Because we have different rules. Sorry.
But dry your tears and reflect that the European tax refund rules are so complex and bothersome that hardly anyone collects the refund unless they did so much shopping that it's enough money to make the trouble worthwhile. That's nobody I ever met.
Oh, but by the way, a friend of mine talked to a shop assistant in France about the refund a few years ago as an experiment, and she got a blank look too.

I always claim the tax refund for my shopping spree in Europe, especially London. It is not that difficult. The shop will just fill in the form for me and put it into an envelop. Then, I bring my goods and the form to the tax refund counter. The tax will be refunded either in cash, to a bank account or to a credit card. But one thing is I gotta spend a minumum amount to be able to claim the tax. Furthermore, there are some "admin charges" for the refund.

Lina

thanks those who answered. Just for the record though-I worked in two major tourist shops in ireland for two summers and EVERY american is out for every penny they can jet (with just cause) so dont anyone say hardly anyone actually gets the tax back-they all do. And in one of the stores we actually took off the tax for them at the point of sale!! Its not complicated at all for the americans and it shud be the same for us.

thanks those who answered. Just for the record though-I worked in two major tourist shops in ireland for two summers and EVERY american is out for every penny they can jet (with just cause) so dont anyone say hardly anyone actually gets the tax back-they all do. And in one of the stores we actually took off the tax for them at the point of sale!! Its not complicated at all for the americans and it shud be the same for us.

EVERY American? Now now.

Btw, if you are staying long enough, a nice trick to avoid paying the sales tax in the States : simply buy your stuff online from a shop that doesn't have a physical shop in the state where you are staying. Even better, the prices are often lower and many shops also provide free shipping...
You may eventually have to contact your credit card company to mention a secondary address but that's as simple as that...
...I've just done it to buy my new digital camera!

JF

". . . so dont anyone say hardly anyone actually gets the tax back-they all do. "

Well, here's another American who never has. I didn't even know I could get taxes back, but I'm sure I won't bother in the future.

No one has posted yet *why* this is so. Here is my reasoning:

In most European countries (and here in Israel as well) the retail tax you pay is what is called a "Value Added Tax" (VAT) or some other name (in Canada, it is called the Goods and Services Tax - GST). Without going into the its accounting complexities, this tax already has a 'built-in' mechanism for refunds because of its properties and philosophy. This type of tax doesn't exist in the USA.

But the main reason that you don't get tax refunds from the USA is most probably that you don't pay *any* direct federal retail tax to be refunded. As far as I remember, all sales taxes are state or local ones. OTOH, all VAT in the world is federal.

BTW, I have gotten refunds from the Canadian government without any problems. The federal government there even has an arrangement with the provinces of Manitoba and Quebec through which you can claim provincial sales tax refunds on purchases in those provinces (there are minimum amounts for each invoice). Also, you can claim Ontario provincial tax directly from that province's treasury (again, subject to minimum amounts in each invoice). I don't know about the other provinces.

Maybe that's the reason: there's no VAT or GST.

In many countries in South East Asia, there's no such taxes as well. Hence tourists will not be able to claim any tax cos there isn't one...

Something that everyone neglected to mention is the fact that the taxes you pay for items in the US are not federal taxes at all. Sales taxes are levied by the individual states. That is why the tax is different everywhere. In California you pay 7.25%. In Delaware there is no sales tax at all. In many cases municipalities also levy sales tax. In New York City, the sales tax rate is 8.5%.

I agree with those who have had problems collecting VAT refunds. You have to collect at the airport as you leave each country. If you do not visit the airport, you are out of luck. Also, you need to spend an awful lot to be eligible.

Joan

if u only spend 5 euro in ireland ur eligible for tax fefund however small it might be. It accumulates the more u spend so on big sales u cud be looking at a nice chunk of change. It doesnt bother me WHO exactly Im paying it to, be it US state o r government, moreso it bothers me that I should have to pay it at all. Also. how annoying is it the way the price advertised in stores on price labels etc does not include the tax??? only in america!!!!

Yes, we are the great Satan and everything imaginable is wrong with us.

I wonder if that's why I had such a nasty Frenchman in the shop once snarling venomously "TAX?TAX? I weel not pay your TAX!" Reasoning with him that the 5% percent he pays here is far less than the 24% I've paid for some things in Europe didn't seem to placate him and off he went, probably to starve in the street for refusing to pay our evil tax.

hmm... My experience of shopping in London. The minimum amount to be eligible for tax refund varies from shop to shop. Furthermore, not all the shops offer tax refund. It is normally GBP50 from the same shop on the same day for tax refund.

I can see that this a culture difference. Every country has different rules and practices. It makes the world more colourful and it's part and parcel of travelling :-). If you do not like a place, then don't go back :-).

Peace be with you...

Lina

Oh yes, I cannot remember which country and which shop I went to in Europe... The minimum amount is Eur200 to be eligible for tax refund... I guess the minimum is not a standard amount throughout Europe, or is there?

Lina

>>>In most European countries (and here in Israel as well) the retail tax you pay is what is called a "Value Added Tax" (VAT) or some other name (in Canada, it is called the Goods and Services Tax - GST). Without going into the its accounting complexities, this tax already has a 'built-in' mechanism for refunds because of its properties and philosophy. This type of tax doesn't exist in the USA.

But the main reason that you don't get tax refunds from the USA is most probably that you don't pay *any* direct federal retail tax to be refunded. As far as I remember, all sales taxes are state or local ones. OTOH, all VAT in the world is federal.<<<

Now the above is actually interesting and helpful. I'm curious what exactly VAT pays for and what the built in mechanism for refunds is all about. Since, as the correspondent points out, American sales taxes are all local, they are going to pay for services you are using by being here, like roads, public transport subsidy and trash collection. (Generally, schools are funded by property tax) If the same is true of European VAT, maybe Europeans should lobby their own legislators for a change in the rules.

But full price doesn't cover the actual cost. Anywhere I've been in Europe public transport is subsidised by tax payers, as it is here.

My point stands. When I am in Europe (Almost always for at least a month at a time) I most certainly am using public services that are supported by taxes, just as anyone in this country is doing the same for whatever length of time they stay.
I'm still waiting to be informed what VAT is supporting and why it's European policy to return it to us if the sentiment is that it's unfair.

To dnwitte (and other interested parties):

Value Added Tax (VAT) is too involved to explain on this forum. Also, for someone who has never lived with VAT, it may be difficult at first to understand (unless you are an economist or accountant). One of the better explanations I found is at the Norwegian VAT site:

http://www.skatteetaten.no/publikasjoner/in_english/Guide_to_Value_Added_Tax_in_Nor/

Hope this helps.

In the meantime I've tried to do a bit of research on my own, and yes, it is complicated and I didn't get my basic question answered. "A surcharge on consumption compounded at every step of the manufacturing and supply process, blah blah blah..."
My question really is whether I'm paying to support things like EU military, salaries for legislators, welfare provisions. then I object. That's what we pay income tax for here in the US, and I don't work in Europe.If it's a contribution to the basic upkeep of something I'm using, in this case the European infrastructure,then I don't object at all. As I think about my long visits to The Netherlands it occurs to me that virtually everything I do is somehow subsidised, from museums to transport to symphony concerts to taking out the trash.

i dont care about different polocies in different countries. what i know is: i worked in tourist shops mainly catering to americans and they were completely *** about getting their tax back-i will never ever forget the tantrums they threw if the hadnt spent enough (5 euro!!) to get their tax back. And i resent that I should pay money towards american facilities and in light of recent happenings-God only knows where american tax money goes to!! Thats all i had to say!

excuse me but how does my not wanting to pay unnecessary tax make me a close minded person? i dont really understand!!

Cool down mates...

The world is so colorful with many different cultures and practices. Be tolerant and accept others' cultures and practices. The Chinese has a very good saying that when in other country, blend in and accept the culture, not wanting others to change for you.

Meeting one or two of a type of person from a country does not apply that everyone from that country is like that. There will be friendly and unfriendly, rich and poor, wise and unwise, tall and short, fat and thin, helpful and unhelpful, educated and uneducated, etc, etc, people in every country.

When travelling overseas, one should accept the local cultures and practices cos one is not a local. How would you feel when a tourist keep complaining about your country, or criticising the way things are done???

Lina

you're dead right-I came over to america to see how they live and to "immerse" myself in their culture. And that I did certainly. And far be it for me to complain about their tax laws. Hey I could comment on how ridiculously lax their gun-laws are for example compared to their open-container laws, I could even comment on the fact that the government is screwing them over left, right and centre by the astromical amounts people are expected to pay for a college education. I could say that it's no wonder if you're born into a trailer park chances are you'll never get out . And I wont even talk about the health system. Its crazy that they even want to capitalize on peoples misfortune. But hey, its not my place to comment-actually I fnd it highly amusing, and the best part is I get to go back to my own country where my government actually looks out for its people and isn't preoccupied with bombing the arse out of other countries. So all's well that ends well.

It's true that the tax situation is unfair, because you have to pay such a high tax and visitors can get off scot-free if they want to. And it's not true at all that tourists are not in the country long enough to take advantage of local services. For example, when I was in Germany last week for a mere 3 days, I:

Used the public streets, which were nicely maintained and kept clean by city workers.

Used the street signals to navigate safely across traffic, which costs money to maintain and uses electricity.

Ate several meals at restaurants, after which I am sure the restaurants washed my dishes, using public water and the public sewer system.

Took showers and used the toilet, again using public water & sewer services.

Used the public transportation system, which I'm assuming gets government subsidies.

Didn't complain about the VAT or demand my money back.

It's a similar situation when I, a citizen of the Commonwealth of Massachusetts, visit the State of New York. I pay the sales & meals taxes due to the state & city and I don't get a refund either when I return to Massachusetts. Frankly, I don't think it's a wise policy for countries (or states for that matter) to return taxes to visitors. There's no such thing as a free lunch, and unfortunately, the local citizens end up paying for it.

Just my opinion.

Makes me wonder about the accountability of the European Parliament. According to what little I was able to learn from a brief internet search, the whole refund scheme was introduced as a plan to combat unfair competition between European countries and was only extended to the US in the 1980s. In other words, distressed economies wanted foreigners to come spend more money. Apparently it worked.
As I implied before, screaming at devil Americans might be a matter of shouting down the wrong well, since we had nothing to do with introducing this system. In this country, if we hate a system we badger our representives into changing it and I can only suggest you do the same.
Oh, and Gillian, thanks for not mentioning all those American flaws . You might have run the risk of painting a really simplistic and one sided picture of the country that hosted you.

Hmmm.... I've never heard of anyone from the US who made a decision to visit Europe, as opposed to anywhere else in the world, because of the tax advantage. If you want to go, you're going to go regardless. I could maybe see an advantage for European citizens at a more local level - Much like the situation here in the states where people might travel to a neighboring state that doesn't have sales tax to do their Christmas shopping. But when you're talking about traveling to another continent for a vacation, the tax rule has so little bearing on your decision that it seems pretty useless to give the advantage to Americans. As I said earlier, I didn't even know about it, and I'd imagine a lot of others don't either. If I lived in Europe, I'd definitely lobby for getting rid of the exception for non-Europeans.

WHy is it that is you find a fault with perfect precious america,ome of you americans think Im faulting them personally. I have no problems whatsoever with americans-they have been more than friendly and I I have made great friends with many of them while I was here and in fact FYI many of them agree with my views. I know Im using your facilities and sytems..water roads etc while Im here but I shouldnt have to invest my money into your countries welfare. Thats your countries job. I have no part to play in it other than the fact that Im contributing to your tourism economy in however small a way. Thats my job. Can't anyone see my point? I shouldnt invest in americas future, I am investing my tax money in my own country. Notice I never once said americans should have to pay tax on visiting ireland...because they shoudnt for the same reason. No wonder america is the greatest "super power" of the world-but nobody likes to be friends with the greedy!

>> " I know Im using your facilities and sytems..water roads etc while Im here but I shouldnt have to invest my money into your countries welfare. Thats your countries job. I have no part to play in it other than the fact that Im contributing to your tourism economy in however small a way. Thats my job. Can't anyone see my point? I shouldnt invest in americas future, I am investing my tax money in my own country. "

I think you are also missing the point. You can think of your taxes as payment for services and infrastructure that you are using NOW, while you are here. It is not an investment for future improvements. If you use the services, then you should pay for that priviledge. If you need a car while you're here, you have to pay for the rental, right? Nobody just offers to give you a free car, do they? Same idea. Nobody gets a free ride here - that's true, and that's way it should be in my opinion.

It's the job of the local government (states & cities) to keep the water running & sewers working & local roads maintained. So yes, the states & cities are doing their job by collecting taxes from you and me when we are here to use those services. Doesn't matter where you're from. Are you using the services & infrastrucure? Yes? Then you have to pay.

Also, as has been stated before, sales & meals taxes are local taxes and they go toward local services that you are using. That money does not go toward the military or any other federal organization or operation.

Diver, I think the point's been made and rejected already. I actually agree with Gillian that it's too bad the arrangement isn't reciprocal, though I don't see how it would be practical for every state with a sales tax to make its own independent arrangements with whatever European body is responsible.I just got my back up at the angry and accusing tone of the posting. I'm not sure she realizes how incessantly Americans are nagged by Europeans about what's wrong with them, how unexamined most of the nagging is,and how phrases like "They all" and "EVERY one of them" and "tantrum"can be construed. This is an unfortunate drawback of this method of communication.
Bye now. DN

I apologise.I shouldnt have generalized,sorry.

I knew all about the VAT tax when I was traveling in Ireland. I got all of the necessary receipts and was going to mail everything in for the refund when I returned home.

However, when I arrived home I was still on Cloud 9 from visiting such a beautiful country. If I could have sent for my husband and son, I would have gladly stayed in Ireland for the rest of my life. Needless to say, by the time I finally got around to sending my receipts in, it was too late. I got the sweetest refusal letter from the person in charge as well as all of my receipts for the tax. My missing the refund was a blessing in disguise. Just this year I lost a celtic cross pendant I had purchased on my '96 trip there and if I hadn't had all the VAT tax receipts still in my possession, I would not have been able to call Avoca Handweavers and order another one. VAT tax? Sure, it would have been nice to get the refund, but the wonderful memories I have of all of Ireland are worth more than any tax refund.