This year traveling will be more expensive than ever, so any way to save is appreciated. Here the tax free becomes important. The mechanism discounts VAT on purchases for tourists and allows them to buy cheaper, but several things must be taken into account to get the most out of it.
One of the first requirements is to demonstrate that you are traveling, so if you have nationality or are a resident, you will not be able to request a refund. Also that not all purchases enter: services and products such as food or perishable items cannot be deducted from the tax.
The process requires different steps depending on the country. In some, products can be purchased directly without VAT by presenting your passport and round-trip plane tickets to the store, such as in the Bahamas. But in most of them, to make tax free purchases, you have to fill out a tax return form and present it at the corresponding offices and at airport customs with the products you want to deduct, such as in Singapore, South Korea or Argentina. In others it is even mandatory that the items be presented sealed and without having been used, which forces you to review the regulations before traveling.
Luis José Llorca, general director of Global Blue in Spain, one of the reference operators, explains that the most common problems for tourists looking to buy tax free are forgetting some part of the procedure, such as requesting the form. He also warns that customs sometimes do not validate a form due to errors when filling it out, although he affirms that more than 90% of people manage to complete all the procedures without problem.
According to the manager of the Union of Travel Agencies (UNAV), Iván Méndez, there is no VAT discount control in each country and each one has different regulations, which makes it difficult for people to know how it works correctly. He also assures that “there are shops that have the tax free message, although many of the products they sell are not, since it is a claim for tourists.”
To avoid trouble, in countries such as Morocco or Turkey, you must go to stores that have the Global Blue Tax Free Shopping sign in their windows. In these cases, the process is somewhat more complex and you can request a minimum purchase amount depending on each country. In the store, you have to request a form that you then have to present together with your passport and the items you want to deduct at the airport customs office to get the seal of approval. On your return, in Spain, you must go to a Global Blue reimbursement office to receive the refund.
When paying, it must also be taken into account that there may be minimum amounts depending on whether it is in cash or by card.
The tax free is distributed throughout the world for a Spanish tourist, but in the countries of the European Union a tourist from another member country does not opt ??for a discount or refund of VAT on purchases. But there are other states of the old continent such as Switzerland, Norway or Iceland in which it does.
In the United States, you can request a VAT refund in the states of Texas and Louisiana. But in others such as Alaska or Montana, taxes are not directly charged on retail sales. In New York you cannot buy tax free, but you can take advantage of the fact that some stores and shopping centers offer discounts to tourists.
Colombia and Peru have been the last countries to join the tax free system thanks to Global Blue and the company assures that other Latin American countries will soon follow in their footsteps.
