My first purchase in Paris.

In Europe I took advantage of the strong dollar and lesser European prices for luxury goods. At the end of 2014 the euro sharply fell to the dollar. On average to euro to dollar for 2015 was .90 Euros to the 1 US dollar.

The current value in comparison to 2014 of .72 euro to the 1 US dollar, the US tourist was the winner. Not only was the US dollar stronger this year, but as someone that is leaving the Euro zone, you also receive VAT back in cash or back on the credit card. In France the VAT for a credit card return is 13% of the purchase price, which is more savings on top.  The European system of returning taxes to the tourist is much better than in the US when taxes have to be paid on top of the purchase.

In Paris the VAT refund is a very easy system to use especially if the products were all bout in France.

1. First is to let the store know that you will be claiming VAT back (that is if you make the minimum of 175€ in France, its less or more in each Euro zone country). The sales associate will fill out the appropriate form for you, they will need to see your passport, so when making appropriate purchase always have your passport with you (pictures or copies do not work). Make sure that you do not use your goods in Europe or carry it into the airport in use. The goods should be wrapped up and in new condition when you see the customs officer before you enter security and all of the clearances.
2. First step in the airport, is to check into your airline so that you have proof to show that you will be leaving the European Union. Keep your purchase on you in case customs would like to see that you are leaving with them from the European Union.
3. Find the customs desk in your terminal. If you bought your goods from another eurozone country*, you will need to get the physical stamp in the last exit country in the EU. In my case I bought my goods in Paris and my exist county was France, so I was able to get a electronic “stamp” (which is a scan of the documents with barcode) from the very useful machines they have right next to the customs desk and I did not have to wait in any line.
4. Last step is to either seal an envelope with your scanned/stamped documents and throw it in either Premier tax-free (usually a yellow box with their logo on it) or to give it in the Global blue counter/throw it in a mailbox for credit card return. Or if you want your VAT back in cash then to take it to the Travelex counter and they will return the money to you in cash (You will lose an extra 2-3% getting cash on the spot).

* The EU contries are: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain

Chanel goodie

I purchased my Boy Chanel in the Chanel 42 Montaigne boutique. This store has the best stock in all of Paris with the best staff (small tip: try to visit the store in the morning, because it is less crowded). My sales associate was one of the best I ever had and her name is Florence. She was beyond patient and advised me to take my time and choose what I think is best. Florence also went out of her way to find out the stock and availability for any bag that I asked her for. I had the best experience and when I go back to Paris I will go and visit her in the Montaigne location.

Let’s take for example my purchase of the Boy Chanel old medium;

Boy Chanel Dark Red

I the US the price is $4,700 plus tax (in NY its 8.875%, every state sets their own taxes, in some states its more the NY and in some its less), so the calculation would be

$4,700×0.08875=$417.13 taxes

$4,700+$417.13=$5,117.13 grand total

In Europe the same bag is 3720€, which would convert to $4,320 US dollars minus 489€ or $520 US. So with the current exchange rate it would be;

$4320-520=$3,800.

So initially I paid $4320 US dollars and after 2 to 3 weeks I received my VAT back. And paid only for $3,800 for the Boy Chanel old medium.

My savings for this bag was; $5,117.13 (US price) – $3,800 (price I paid in Euro after VAT refund)= $1,317.13 total savings for the Boy Chanel Old Medium.

Next up Rue Cambon

More reveals coming soon!

Trip to France: Paris Part 1

Trip to France: Paris Part 2

Trip to France: Paris Part 3

Trip to France: Charles de Gaulle Part 4