QUESTION: A friend and I bought some jewelry in Hungary, but when we went to collect the VAT at our departing airport, Frankfurt, the cash refund desk was closed. Can we get a VAT refund by mail?
ANSWER: You were smart: You tried to get your VAT refund while still in Europe, which is what experts advise. And you got your paperwork stamped by Customs. Before we get into your refund request, here are some details for other travelers heading to Europe:
VAT stands for value-added tax, a tax that is built into the price of goods in many nations, particularly in the European Union. The VAT varies from country to country (roughly 4 percent to 25 percent) and even varies within a country on the type of goods purchased. Also, each country determines how much money that you, a non-EU citizen, must spend to get a VAT refund.
The VAT does not apply to food or services. So if you buy just a few souvenirs, you may not meet the country's threshold ... or it may not be worth the paperwork hassle. If you are doing some major shopping, it's definitely worth your while. Some high-end retailers will make it easy for you. Harrods, for example, maintains a VAT refund center so that shoppers may apply for, and receive, their money before leaving the store.
According to European travel expert Durant Imboden (europeforvisitors.com), two companies handle the bulk of VAT refunds: Global Refund and Premier Tax Free. Global Refund operates in Hungary, so we contacted company officials about your refund. In Hungary, the refund check is valid for 150 days from the date of export (the date of the customs stamp).
“Please note that the Customs stamp always has to be obtained when leaving the country,” Global Refund's Marie Bergfelt said. “It serves as the proof of export. And without the Customs stamp we cannot pay anything.”
Fill out the payment details on the back of the check and indicate whether you want a credit-card refund or a bank check sent to your home address. Mail it to this address in Hungary: Innova-Invest Penzugyi Zrt, Ferenciek tere 10, H-1053 Hungary. You should receive a refund, minus a service fee.
“For what it's worth, I don't claim VAT refunds myself,” Imboden says. “After spending 18 days in an Italian hospital free of charge during a stopover in Italy, compliments of Italy's national health scheme, I'm happy to pay VAT and support the system!”
Linda Zavoral: TravelQA@mercurynews.com
