Wednesday, January 21, 2009

How does TAX FREE shopping in Germany work


How does TAX FREE shopping in Germany work?
I have been living in Germany for a year, and I will be traveling back to the U.S. this year in July. I have known some people who have done TAX FREE shopping in Germany when they intend on leaving the country. Is there a special way that I should go about in doing this? How difficult is it to obtain the TAX FREE forms? Also, how much will I actually get back from customs at the airport? All in all, how does the TAX FREE program work? Thanks for all of the help!
Other - Germany - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
I know that some shops specialized in selling to tourists or in the wholesale business will have all the necessary forms ready, and there it's not a big problem for you to buy tax free. The same applies if you buy bigger and more expensive parts like car spares and the like. But usually, those things will be shipped separately to the USA anyway. You won't take them with your luggage. There might be some expensive, but small things you would like to take with you directly (say, expensive jewellery); and those dealers will also be prepared to handle the necessary paperwork for you. But usually, it's not really worth the mess. I know some dealers who sell tourist stuff "tax free", and all of them tell me that they charge higher prices from the beginning, because their tax forms get more complicated by offering that. And I think to every reasonably thinking person it should seem logical that paying 19% VAT in Germany on rather low-priced items and taking them with you without losing a lot of your valuable time and doing lots of paperwork usually is the better option.
2 :
Tax free shopping in Germany Living in Germany I would check at the customs office for the forms. They usually cost about 5 bucks per form and one item limit per form. The tax here is something like 17% so on small purchases it really is not worth the 5 buck to be reembursed a few dollars. Best use it on large purchases where the tax adds up to a worth-while amount.
3 :
To Chris M: I don't think you have ever been to Germany before otherwise you would know that the tax in Germany is 19% and the forms are for free. I got those forms before and you have to fill them out, retain your receipt of purchase and have it stamped by the customs at the Airport, this way they know that the item left the country. The form will tell you the rest, when and how you can get your tax back.