Are you travelling to Rome, Paris, Lisbon or Barcelona and is wondering which of these cities can get you the cheapest Louis Vuitton merchandise?
Let compare the prices two of the most popular Louis Vuitton which is Neverfull MM and Speedy 30 for each of these countries.
Prices for Neverfull MM in Europe after Tax refund
| Country | Price | VAT | Actual VAT Refund |
|---|---|---|---|
| Italy | € 1,500 | 22% | 13% ~ 15% |
| Spain | € 1,500 | 21% | 12.75% ~ 15.3% |
| France | € 1,500 | 20% | 10.5% ~ 12% |
| Portugal | € 1,500 | 23% | 13.75% ~ 14.5% |
Prices for Speedy 30 in Europe after Tax refund
| Country | Price | VAT | Actual VAT Refund |
|---|---|---|---|
| Italy | € 1,600 | 22% | 13% ~ 15% |
| Spain | € 1,600 | 21% | 12.75% ~ 15.3% |
| France | € 1,600 | 20% | 10.5% ~ 12% |
| Portugal | € 1,600 | 23% | 13.75% ~ 14.5% |
First the prices for both Speedy 30 and Neverfull MM are the same through out in Europe and it includes Taxes. The differences lie in how much you are able to claim back for VAT or tax refund as a tourist. Refund companies, such as Diva, Global Blue or Planet Tax Free, will usually charge a substantial commission to process your refund claim and the company you engaged will have different amount of actual VAT refund.
Take for example if you buying a Speedy 30 which is priced at €1,600 in Paris, France.
VAT Rate in France: France applies a standard VAT rate of 20% to most products and services.
Calculation of Tax Amount: If you make a purchase of €1,600 in France, 20% of that amount, which is €320, is the VAT included in the purchase price.
Tax-Free Refund: Tourists visiting France can potentially get a refund on the VAT they paid on eligible purchases. In your example, it’s €320.
Recovery Percentage: Theoretically, you wouldn’t get €320, you could only recover 10.5% to 12% of the purchase price and not the entire amount depending on the intermediary refund agent.
Intermediary Refund Agent: To get a tax refund, tourists typically need to work with an intermediary refund agent. In Europe, companies like Planet Payment and Global Blue are well-known for handling these tax-free transactions.
Even though the VAT is different in Italy, France, Portugal or Spain it is unlikely to impact much on the final price as it will be eventually superseded by the claiming method that you use for VAT refund.
For example, Planet Payment claimed that their actual tax refund value can be up to 10%~16.33% on standard VAT items, this via Credit card refund.
Typically value if you are looking at immediate tax refunds via cash it is around 10.8%. For example, at the DIVA Kiosk at Spain for a purchase amount of €780, you can only get back €80 Euros as the kiosk charged €12.50 service fee.
Wevat a new app for VAT tax refund claim they can do 13%.
Global Blue don’t publish any details of their actual refund on their website while most claimed it is only 10%.