Do you ever wonder exactly how much is the VAT refund in France is? I’ve read online that you’re supposed to get 20% back but the tax refund companies that process the paperwork for you actually takes a cut. In the end, you end up getting 12% back or at least that is what the paperwork always says. But I know after the conversion fee and credit card fees, it’s even a smaller percentage of what you get back. So, I decided to document everything we bought on our last Paris trip so you can get an idea of what the VAT refund in France really comes out to!

• Related Article: Seriously, How much is the VAT Refund in Japan?

 

What Exactly Is a VAT Refund?

VAT (Value Added Tax) is a tax that is added on a good or service that residents of that country has to pay. The VAT refund usually applies to tourists or business purchasing said good or service in a country that they do not live in. 

 

What is the VAT Refund Process?

The VAT refund process usually involves obtaining a VAT refund form from the retailer, having it stamped by customs or scanned through a machine when leaving the country, and then submitting it for a refund, either at the airport or via mail.

Side Note: Make sure to ALWAYS BRING YOUR PASSPORT with you if you want the tax refund. Otherwise, the retailer will not give you a VAT refund form. 

 

How Long Does the Refund Process Take?

In France, there’s two major companies that processes VAT refunds for retailers: Global Blue and Planet Tax Free (formally Premier Tax Free). In my experience, Global Blue is pretty fast and I get my VAT refund back within a couple of days. For Planet Tax Free, I usually get it within a couple of weeks.

 

How Much is the VAT Refund in France?

For France, it’s technically supposed to be 20% but tourist rarely get the full VAT back since companies like Global Blue and Planet Tax Free take a big chunk out of it as a convenience fee for processing the VAT refund for you. In the end, the paperwork shows up as you getting 12% back on your purchases, but I’ve noticed that the math is not adding up to the full 12% due to the conversion fee, currency exchange rate, and credit card fees. So, in good Luxury Lowdown fashion, I wanted to do some math for all of you!

 

VAT Refund in France Examples

Example #1: Chanel Coco Crush Ring

	The ring costs 1,640 euros and it hit my credit card at $1,779.73. My VAT refund took awhile (3 weeks) and I got $189.46 back onto my credit card. So, all in, it cost me $1,590.27. Cost in Paris: 1,640 euros Cost in US Dollars: $1,779.73 VAT Refund: $189.46 VAT Refund Percentage: 10.65%

 

Example #2: Louis Vuitton Ombre Blossom Ring

	The ring costs 2,100 euros and it hit my credit card at $2,271.78. My VAT refund was pretty fast and I got $248.86 back onto my credit card within a couple of days. All in, the ring cost me $2,022.92. Cost in Paris: 2,100 euros Cost in US Dollars: $2,271.78 VAT Refund: $248.86 VAT Refund Percentage: 10.95%

 

Example #3: Celine Teen Triomphe Bag 

	My friend that was with me bought the bag for 3,200 euros and it hit her credit card at $3,473.28. Her VAT refund took a couple of weeks and she got $372.66 back onto her credit card. So, all in, it cost her $3,100.62. Cost in Paris: 3,200 euros Cost in US Dollars: $3,473.28 VAT Refund: $372.66 VAT Refund Percentage: 10.73%

 

Example #4: Dior Book Large Tote and Chanel Mini Flap w/ Handle

I’m group these two together because I submitted my refund for both at the same time. If you buy your items at a shopping mall like Galleries Lafayette, you can actually bundle all your purchases into one refund so you don’t have to do a separate refund for each item.

	Dior Large Book Tote My friend asked me to buy this bag for her. It cost 2,800 euros and it hit my credit card at $3,038,56.  Cost in Paris: 2,800 euros Cost in US Dollars: $3,038,56                   Chanel Mini Flap w/ Handle I bought this purse for 5,450 euros and it hit my credit card at $5,914.34. Cost in Paris: 5,450 euros Cost in US Dollars: $5,914.34       VAT Refund for Both Items Total Amount: $3,038,56+$5,914.34= $8,952.90 VAT Refund: $959.23 VAT Refund Percentage: 10.71%

 

Example #5: Goyard Saint Sulpice Card Holder

	My friend asked me to buy this card holder for him. It cost 350 euros and it hit my credit card at $375.52. His VAT refund took a couple of weeks and he got $40.72 back. So, all in, it cost him $334.80. Cost in Paris: 350 euros Cost in US Dollars: $375.52 VAT Refund: $40.72 VAT Refund Percentage: 10.84%

 

Conclusion

So after doing all the math, it looks like if you do your VAT refund in France with a credit card, you only get about 10%-11% back of your purchase. Not the 12% that the paperwork always claim. The only way I know for sure that you would get the full 12% back is at the Duty Free shops at the airport. At those shops, I know that they discount the 12% right in front of you. You don’t have to deal with any VAT refund paperwork or deal with showing your items to the customs officers at the airport. With that being said, you risk the duty free shops not having your item. Hope this was helpful in your future purchases!