How does vat work in France?

How does VAT tax work in Europe?

• I am going on a 2 week trip to Europe- beginning in London, Amsterdam, Germany, Switzerland, France, Belgium, and ending in London, flying out of Heathrow airport. Is VAT to be paid on EVERYTHING I buy? Say I buy a small magnet from a souvenir store thats worth 5 euros, is VAT collected on that? Or is there a minimum purchase you have to make in order to be taxed vat? Also, if I want to get a refund, can I do all of it at Heathrow? I'll also have purchases made with euros so I do not know if I can do that in Heathrow since they use the pound. Is there anywhere else (besides the airport) I can fill out the paperwork for my VAT refund?

• Answer:

  Value added tax is levied on almost all goods and services in all those countries. The tax rate varies between countries and items up to 21 % (up to 25 % in certain other European countries). Prices to consumers are given including VAT. Goods that are exported may be subject to a VAT refund. 1. Buy goods in a store participating in the programme. There is a minimum amount per purchase, varying between countries. 2. Receive a refund cheque. The cheque will later entitle you to a refund of the VAT minus a handling fee. Do no break any seals on the merchandise. 3. Show the goods you intend to export to a customs official and have your refund cheques stamped. Be prepared to show your travel documents. For goods bought in Switzerland this must be done when leaving the country. For goods bought elsewhere cheques should be stamped at Heathrow when leaving the European Union. 4. Present your stamped refund cheques to a refund office. The refund offices at Heathrow will accept cheques from any country. The use of different currencies is not a problem.