How to Defeat the VAT Monster

Oh, the many-headed value-added tax (VAT) monster: it lures you in with a promise of a refund (up to 23%!), but puts umpteen obstacles in your way. It dangles a carrot and beats you with a stick, so to speak. Here, my friends, is a series of questions to help you navigate:

1. Is your purchase higher than the minimum amount? 2. Is the refund worth your time? This process will add at least 1 hour to the time before you get to the airport and another hour at the airport. 3. Only if you answered yes to both questions above, should you fight the VAT monster. Present your passport when you buy goods and ask for a special receipt. Next steps are: 4. Fill out the forms included with those special receipts and determine if you want an immediate (cash) refund or a credit to your card. I went with the credit card so I wouldn’t have to stand in yet another line for the cash refund. Also, Pack your goods-that-need-a-refund into your carry-on. 5. After you pass through security at the airport, look for the smallest hallway. The customs line is at the end of a corridor that should only fit janitorial trolleys. 6. Once you’re in the customs line, demonstrate your careful preparation. If you seem competent and honest, you get through the inspection much faster. For example, it took me less than 5 minutes to breeze through inspection while another woman was kneeling the entire time, frantically pulling out Chanel scarves from her purse. 7. If you want a cash refund, there’s a line immediately outside the customs’ exit for that. Otherwise, you should mail off your refund forms in the envelope given to you by the retailer.

The key to this entire process is organization and knowing what your time is worth. That way, you won’t be cursing the VAT monster as you wait in the final line for postage.

To budget for your summer vacation, check out this page at PracticalMoneySkills.com.

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Posted by Alex Heidenreich 25 Aug, 2011 No Comments »
tag_img Tags: Monster

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