There are times when as a tourist is smart advice-especially if a foreign trader travellers if they would accept a receipt of VAT (VAT) to be eligible for a refund of the tax.
These discount, available only for non-resident programs, are commonplace in Europe. But there is a growing number of countries in the world where travellers can also obtain a refund. (See the slide show what buy where below.)
Singapore launched the trend of repayment in Asia in 2004 and was soon followed by the Indonesia, the Japan, the Korea of the South and the Thailand. Unknown to many travellers, Mexico began to offer tax refunds in 2008 (just one year after Canada cancellation of its discount program for individual travellers).
VAT and GST (goods and Services Tax) place the tax burden on the consumer end, due to the place where the merchandise is used. In many places, purchased goods taken out of the country by non-residents are not subject to VAT/GST to 5 per cent to 25 per cent in Sweden Japan, the Norway and the Denmark.
Despite this, travellers usually have to pay tax, at least temporarily, on the purchase of an item. This is why travellers need to file the documents appropriate for a refund on the way back.
There are procedural nuances from one place to another, but the basic principles are the same everywhere in the world. Purchase goods of a Merchant authorized tax free shopping. Do the minimum required purchase (as low as $17 in Argentina, up to a maximum of $300 in Australia), if there is one, and the Clerk to complete the necessary tax forms. Present a passport for identification.
At the airport, show the goods to the Customs office before going through security, and have tax forms stamped. Passengers can then pack the goods in their luggage and record (except Australia, which requires that the carry-on baggage of these purchases, except wine and oversized items). After passing through security, submit the forms on a pillar of tax refund for an immediate refund or to have a cheque by mail home.
Beware, however, that many countries charge a commission on refunds. If passengers want to refund credited to a payment card, expect to pay $4 in South Africa. Israel has a sliding Commission scale ranging from less than 5% to a maximum of 15 percent, according to the amount of the refund. Fresh Mexico a sum exorbitant commission of 35%.
Anywhere people make tax-free purchases, don't forget:
? Discover the requirement minimum purchase, if applicable, for a single item or total of the amounts, and the walkthroughs. Get details on dozens of countries, tax free shops operators premiertaxfree.com and global - blue .com.
? Look for merchants' signs and stickers that say non-taxable Shopping or refund of the VAT.
? Shop now. Less than a non-participating merchant may be a deal better than a higher price at a participating merchant, despite reimbursement.
? Travellers will almost always have to show your purchases to an officer of customs at the airport or a seaport.
A refund may not add up to lots of money is after all said and done. But the bottom line is if travelers want this money in the end with the excise man or in their pockets.
Things to buy: Opal jewelry, Aboriginal art, Sheepskin boots.
VAT/GST: 10 per cent, included in the price.
Separate WET (Wine equalisation) tax on wine: 14.5%.
Spend minimum: total of US $300 in any single store within 30 days (no pass no minimum required on any single receipt).
Little secret: most countries exclude alcohol discounts, but the Australians will refund the tax on wine. If some repatriate. In fact, go wild and make a case.
Repayment on a purchase of $ 500: $45.
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