15. About tax refund
15. About tax refund
1. Duty free products also include taxes
In the impression of many people, duty-free goods are the "naked price" of goods, and no taxes are levied except for the price of the goods themselves. In fact, there are a lot of taxes and fees included in the goods, such as import tariff, consumption tax, value-added tax, etc. In some countries and regions, local construction or welfare costs will also be included in the goods.
The duty-free goods are usually exempted from import duties. The tax rate of this part is mostly 20% - 100%. Other taxes cannot be exempted from duty-free goods. In contrast, the drawback goods cannot be completely tax-free, but only the consumption tax and value-added tax included in the goods can be refunded. Therefore, it is ideal to combine the two.
2. Tax refund is also available for duty-free shopping
Is there only one choice between tax exemption and tax refund? Of course not. First of all, the types of taxes exempted or refunded by the two are completely different. What is exempted from tax exemption is the import tariff, while what is refunded is the consumption tax and value-added tax. This part of the tax rate is usually not high, mostly concentrated in 5% - 20%. From the name of the store, we can easily distinguish the duty-free store and the tax rebate store. DUTY FREE is the duty-free store, and TAX FREE is the tax rebate store.
However, it is worth reminding that only goods purchased in the tax refund shop can be refunded. In many countries, there are tax refund policies for foreign tourists, even when shopping in the duty-free shop, so it is better to confirm with the merchant in advance when shopping. In particular, some souvenir stores and local specialty stores are usually refundable.
In different countries, the tax refund policy is different. Most countries have the provision of "the minimum amount of tax refund". Not all goods can be refunded at will. For example, Australia stipulates that tourists who purchase goods worth more than AUD300 from the same store within 30 days before departure can apply for tax refund; The minimum tax refund limit in France is 175 euros.
However, there are specific requirements for this limit, that is, the same business must consume more than this limit on the same day to apply for tax refund, and some even require the same consumption bill to reach this amount. Therefore, it still needs some skills to succeed in tax refund. First of all, you need to plan what you need to buy, and try to choose the same business. If you have a partner, you'd better buy together, so that you don't need to overspend, and you can enjoy the discount together.
3. Not all duty-free goods are imported
Generally speaking, the tax exemption for duty-free goods refers to the import tariff, which will make many people think that duty-free goods are imported goods, otherwise why the import link. In fact, each country has a certain tax reduction policy for the import and export of different commodities. Take the Capital Airport as an example, in addition to all kinds of imported goods, there are also many domestic goods available in the duty-free stores. The price of these domestic products is much cheaper than that of domestic purchase.
For example, China has relatively strict control over high-end tobacco and alcohol and other goods, and the taxes levied are relatively high, but there are relatively large preferential policies for the export of such goods. Therefore, the prices purchased outside the customs (such as airport duty-free stores) are far lower than those in the domestic market. Of course, not all domestic goods will have such a large price difference, such as clothes, shoes and hats, and other daily necessities. The tax levied on them is relatively low, so even if they are duty-free, there is not much difference. After all, the area of duty-free stores is limited, and the range of choices is not very wide.
4. Goods cannot be used or unsealed before tax refund
Unlike duty-free goods, the tax refund goods include taxes when they are purchased. These taxes can only be returned after customs inspection and relevant procedures. Therefore, before leaving the country, you need to hold the tax refund form and stamp it at the customs office before you can refund the tax, and the customs will usually be more strict in the inspection. In addition to the detailed documents of the purchased goods and the application form for tax refund, it is also necessary to provide the customs with the corresponding goods purchased. The customs usually requires that these goods are not yet used, or even kept intact. The drawback goods themselves are the preferential policies that are adopted for the consumption that is not in the country. The consumer goods or services are usually not subject to the drawback policy.
Therefore, in order to successfully refund tax, it is necessary to ensure that the purchased goods are not used or unpacked. If the consumption documents and goods at the customs are not matched, it is likely that the tax refund will not be possible. In addition, it is worth reminding that if there are liquids that exceed the flight limit among the goods to be refunded that cannot be carried on the plane, it is necessary to verify the specific location of the customs and the relevant procedures for checked baggage before going to the airport. If the goods cannot be checked and sealed by the customs, you need to be careful when selecting the goods. Otherwise, not only will the tax refund fail, but the goods you carry will probably be detained, which will not be worth the loss.
In addition, if there is a transfer in the middle of the flight, it is likely that a similar situation will occur. In particular, different countries and airlines have different requirements for carry-on baggage, and some duty-free goods purchased by airport duty-free stores will also be prohibited if they exceed the specified limit.
5. The duty-free goods in the same region may have different prices for the same item
Although the sales of duty-free goods are much less than ordinary businesses, the operation of duty-free goods is not monopolistic, especially in many foreign regions. Even in China, there are many businesses that can be seen in the duty-free zones such as major airports, such as Japan, China and DUTY FREE. There is also competition among these businesses. Therefore, although all of them sell duty-free goods, the price is the same as that of ordinary goods.
Different agents often have different pricing for the same product due to their different cooperation with suppliers, their own sales channels, sales strategies and other aspects. Therefore, it is also important to shop around for duty-free goods. During the journey, there are many opportunities to buy duty-free goods, such as airport duty-free stores, urban duty-free stores, and duty-free goods are also sold on cruise ships or airplanes. Therefore, it is advisable to make a comparison before deciding to buy.
6. There are also tax shops in the duty-free zone
The duty-free shops in international airports are usually important areas for shopping. When leaving the country or entering the country without going through the border inspection, they will pass through a so-called duty-free area, which is actually outside the customs. In this area, you can basically see a wide range of duty-free shops. However, this does not mean that all businesses in the region sell duty-free goods. Outside the customs is just a geographical term. Many goods here can enjoy preferential policies of import and export taxes, but not all goods are duty-free.
The duty-free stores usually have obvious signs. The goods in the duty-free stores are duty-free goods, while the goods sold by other businesses are not much different from the ordinary stores, sometimes even more expensive, because the airport stores generally have no discount or promotional activities. Therefore, when shopping at the airport, it is still necessary to carefully distinguish between duty-free stores and duty-free stores.
