LebGeeks

shant

Member

How does tax free work?

Hi everyone, i am in the process of buying a new phone and i'm going on a tour to italy soon with a lebanese passport and a visa, I was wondering if i can benefit from a tax free process at the airport? what are the rules of getting tax free? if in case i cannot do it with a lebanese passport, my parents have an armenian passport, could they do it for me? although they will not be traveling.

nuclearcat

Member

Re: How does tax free work?

Usually if you visit country and buy things there, on my experience (not sure if same apply for europe)
1)Check if shop tax-free, they should give you all necessary paperwork(there is some extra papers probably), you will pay tax at that moment
2)In airport you give this papers and how product you bought, and they give you back tax you paid

shant

Member

Re: How does tax free work?

Usually if you visit country and buy things there, on my experience (not sure if same apply for europe)
1)Check if shop tax-free, they should give you all necessary paperwork(there is some extra papers probably), you will pay tax at that moment
2)In airport you give this papers and how product you bought, and they give you back tax you paid

Yes, i can get a proper invoice easily, I'm just not sure about the exact documents and criteria that i have to meet at the airport to be eligible.

Kazouza

Member

Re: How does tax free work?

At the shop, just ask them for recommended paperwork. Then when you get to the airport, ask at the information desk for the Tax Refund place and they will direct you there. You'll have to present all the papers you got from the shop with your passport and that should be it if I remember correctly.

shant

Member

Re: How does tax free work?

At the shop, just ask them for recommended paperwork. Then when you get to the airport, ask at the information desk for the Tax Refund place and they will direct you there. You'll have to present all the papers you got from the shop with your passport and that should be it if I remember correctly.

Yes, it's very simple to get the paperwork, I just wanted to know if i can successfully get it with a lebanese passport while traveling or an armenian one that's not, the reason i'm asking if i am eligible or not is because i'm trying to decide on where to buy the phone from, CTC warranty is more expensive but i would rather have an official warranty, so if i can confirm i'm eligible for a refund then i'd go for CTC, else i would be buying from places like 3glebanon.

Kazouza

Member

Re: How does tax free work?

Ah, you want to buy it in lebanon, and get the refund at the lebanese airport? If that's the case then I have no idea.

rolf

Member

Re: How does tax free work?

Usually VAT does not apply to tourists. So keep the bills, and at the airport they would be kiosk where you can show the bills and get a refund.
I never did the procedure myself. I just saw a huge queue of chinese tourists at Heathrow airport London.
So ask, it depends on the country, maybe in some places you have to apply in advance and it is somewhere else or not applicable at all.

nuclearcat

Member

Re: How does tax free work?

Lebanese can't apply for this in Lebanon, and armenian passport - all depends if holder of passport visited country AND entered by this passport, also duration of stay matter.
Most likely it wont work at all. This is intended for tourists only.

Last edited by nuclearcat (April 21 2018)

xazbrat

Member

Re: How does tax free work?

This won't work for you--you need to go into a store which advertises tax free (usually high end touristy stuff) and fill out some forms and you then present the forms in the airport and they will either give you the money when leaving, send you a check or send the refund via credit card.  On top of that, they sort of look at your passport and a Lebanese one probably won't give you the opportunity unless you can show that you are a permanent resident of another state and are only here on holiday or other short term stay.

If you are willing to take a chance, maybe they are selling phones duty free either here (I don't think they have) or in Italy--in either case, the phones are cheaper here than in the EU, at least for new ones.  If you were going to Dubai or the UAE, the phones there are cheaper so better off getting one from there.

rolf

Member

Re: How does tax free work?

Airport shops are usually expensive even without taxes. But do have a look when you're in the airport (either in Lebanon or there), you might get lucky. Try not to miss your airplane though, I once almost missed my flight because I was too busy checking out cameras.

If your parents are not travelling then they will not be able to get to the duty free shop area in the airport, so they can't help.

Airport shops are duty free, so the way I understand it is you don't pay VAT therefore you cannot ask for VAT refund. I am not sure though.

Duty free shops will ask for your ticket but not your passport, I think, so your nationality would not matter. Again, have a look and ask when you're there.

Your best bet for buying a cheap phone is ordering it on ebay, Amazon, or such - you will need to know an address of someone to deliver it to, or if you're staying a long time (a week or more) at the same hotel you can use the hotel address. I would not try this if I'm staying a few days at the same hotel because of the variance in delivery delays, it can arrive 2 days (or more) late or 2 days early especially if ordering from another country.

You could also research online to find good shops there and go get one once you're there. If you're going to a big city then you might get luck and find a good deal on some site for a shop there.

Then on your way back you can apply for VAT refund, however I'm not sure that you can get refund for stuff bought online. I think you just need the invoice and your passport and visa. Look up the details online.

You can get VAT refund when you buy things on a touristic visit. So you would be a tourist in Italy.

If you want to cheat and buy the phone in Lebanon and try to get a 11% VAT refund by pretending that you're on tourism here, I don't know how it works, I don't know much about VAT refund here, and I would not bother trying this personally.

It will be difficult to argue that you're on tourism in Lebanon when you are showing a Lebanese passport.

This is my advice based on what I know.

the phones are cheaper here than in the EU

This is true, except if you are looking for a specific model that is rare then it will probably be more expensive here.
So if the phone that you want is generally available in Lebanon, better buy it here then.

Last edited by rolf (April 22 2018)

shant

Member

Re: How does tax free work?

Thank you everyone for helping,
I contacted Global Blue and even they did not give me an accurate answer:

"It’s my pleasure to help you with refund procedure.
There are different Tax Refund rules applied in different countries.
I‘d recommend you to find specific information on our website:
http://www.globalblue.com/tax-free-shop … p-tax-free
You may check the information according to the country where your Form was issued.
Based on your description, since you're non-EU citizen, you should be eligible to claim the refund.

However, I'd still advise you to check the rules and regulations with respective countries.

If you have any questions, you may reply my email so I can assist you further."

From this link here it says I am eligible if I am living outside Lebanon or if I have a permanent residency outside Lebanon. (does not mention having to reside in that country)
http://www.globalblue.com/tax-free-shopping/lebanon/
I guess we should be able to conclude that anyone who has a dual citizenship should be able to benefit from this.
Although I have my doubts since here in Lebanon you get told something and get something else *depending on who's at the booth and which side of the bed he/she woke up*

I have decided to not bother with it this time as rolf suggested, I will, however, try to test this in the future, I did not apply for an Armenian citizenship myself so i will have to wait for my parents to travel to be able to test this and post back here.

If anyone here is a frequent traveler with dual citizenship, can you test as well?

xazbrat

Member

Re: How does tax free work?

Yeah--wouldn't bother---on an $800 (not including VAT) phone, the tax is less than $90.  If you were going to buy a nice watch, some jewelry or even a car, it may be worth it, but if you want to jump through this headache for $90, it is your call to make.  Better choice would be to find someone coming in from Dubai and have them pick up the phone there.  The S9 can be found for less than $700 and that would be a significant difference over what you may potentially save on taxes.   In any case, gl and just have fun and enjoy your trip to Italy.

Last edited by xazbrat (April 23 2018)

rolf

Member

Re: How does tax free work?

If anyone here is a frequent traveler with dual citizenship, can you test as well?

Interesting. Can I claim my tax back on a car?

I doubt it would work, otherwise everyone would be doing it. I guess I will need proof that I'm shipping it.

Last edited by rolf (April 25 2018)

Gamer

Member

Re: How does tax free work?

okay the general rule (before the increase to 11%) was the refund was 8.5% approx not 10% (dont know how much it is now may be 9%)

2nd with the Lebanese passport (or any passport) you are entitled to a refund as long as you are a resident of another country and are visiting Lebanon for less than 3 months between visits

3rd to get a refund of any item. you need the product you purchased & the VAT receipt  and visit the custom controller office at the airport before you get your ticked because he is the person that decides or rejects the refund. after that you can go ship your items and got to the VAT office for a refund

shant

Member

Re: How does tax free work?

I came into a customs person today and asked, he said they will check the entry and departure stamps on the passport and decide based on that proof, as well as a foreign passport ofc.