I am sure many of you have heard from a variety of sources (me included) that if you are going to buy a luxury item new you should buy it in Europe. You can get the same exact good for cheaper in the boutique. And if you were like me the first time I heard this you are wondering how exactly this works- so let me explain it to you.
How To Save Money
1- When you go to purchase the item make sure that you have your passport and ask for the sales associate to help you with the VAT back process. The name on the passport must match the name on the credit card if you are paying with card. [Note there are certain places where you must not have a passport from that country but if you are a US citizen traveling in Europe you should have no issues!]
2- The sales associate will fill out the paperwork and have you sign it in certain places. You will then take the paperwork he or she gives you and NOT loose it. If you loose the paperwork there is nothing they can do for you.
3- Take both the goods and the paperwork to the customs office before you leave the country or the EU depending on where your leaving from. For example Switzerland is not part of the EU so if you are traveling from Zurich to London you need to make sure to stamp the paperwork in Zurich at the customs office. If you are traveling from Spain, to Italy, to France, you would get all your paperwork stamped in France. You must also have the goods with you and in unused condition. I have seen many many a person loose their refund because they put their goods in their luggage which they checked before going to customs. To get around this problem I simply carry on all my luxury goods.
4- Get the paperwork scanned or stamped. In Zurich you must get the paperwork scanned and then take it to the Global Blue office to get it back on your credit card or in cash. In Paris you just have to scan the paperwork and get the green check mark. If something goes wrong with your paperwork you can be required to mail that in but it’s free.
5- That is it. It’s really that simple and you get a fresh from the boutique good!
Bargain Hunting Blonde Tip: Always get your VAT back on your credit card. It takes anywhere from 2 days to a month but you get more money back in the long run and I have never had problems with it.
Example
I bought a Chanel 19B (so this is the prefall collection that is just out right now) mini rectangular flap in blue/ grey lambskin with silver hardware at the rue Cambon store. That means I bought my bag at the most famous Chanel boutique in the world and saving money still holds true.
The bag cost €2,850. When my credit card converted that I paid $3,166.78. [Note that I do not pay foreign transaction fees on top of the conversion. So card will charge an extra 3-5% on top of the conversion from Euros to Dollars.] I then received back from scanning my VAT form at the airport customs $384.28 directly back on my credit card in less than two weeks. That means the bag cost me $2,782.50. If I went into the Chanel by me in Palo Alto the exact same bag (without the Rue Cambon experience and the famous white packaging) would cost me $3,500 plus tax of $323.75 bringing my grand total if I bought it in the US to $3,823.75.
That means by purchasing my mini rectangular flap in Paris I saved $1,041.25.
Moral of the story- If you are traveling to Europe (specifically the EU) save up those dollars because there are a lot of savings to be had!