Shopping overseas? Make sure you claim your tax refund
MUMBAI: If you plan to go overseas this year for your annual holiday, besides booking your accommodation, internal travel options, finalizing the food and drinks options, you may also want to take notes for tax refund in case you plan to shop. Did you know that you can claim value added tax (VAT) refund on your shopping in select countries? Here is how:
THE PROCESS
Many travellers on their holiday to their favourite destinations tend to shop either for themselves or for their family back home. Some countries in the European Union, United Kingdom and Singapore allow you to claim a refund at the airport on goods you would have purchased. This could include clothes and cosmetics.
However, services and goods such as hotel bills, goods bought online and consumable goods that you have already consumed will not qualify for a refund.
In order to get a refund, the process should start with shopping. When you approach the shopkeeper for bill payment, you have to inform the retailer that you want to claim tax refund.
The retailer will give you a refund form along with the bill of your purchase.
You should ensure that you keep both the bill and the refund form with you. Most countries impose a minimum amount of transaction for refund.
On the day of your journey, make sure you reach the airport early to claim the refund. Airports have a separate counter for tax refund. Before reaching the counter, you have to fill the refund form provided by the retailer with the bill of purchase.
You have to mention your name, credit card details, bill details, passport number and your signature. Some countries may allow you to do it electronically for which you don’t have to fill different refund forms.
THE COST
There are two ways to get your refund—in cash and on your card. In case of cash, you may have to pay a fee.
For instance, in UK if you ask for a refund in cash, you will be charged around 1.50 pounds. In case you take the refund on your card, you may not have to pay a fee. Remember that the card refund is likely to come with a delay of four to eight weeks.
Next time when you are travelling overseas and end up shopping, don’t forget to claim your refund before heading back to your country.