Taxes

TRAVEL TIPS

Taxes

When leaving the Irish Republic, U.S. and Canadian visitors get a refund of the value-added tax (V.A.T.), which currently accounts for a hefty 23% of the purchase price of many goods and 13.5% of those that fall outside the luxury category. Apart from clothing, most items of interest to visitors, right down to ordinary toilet soap, are rated at 23%. V.A.T. is not refundable on accommodations, car rental, meals, or any other form of personal services received on vacation.

Many crafts outlets and department stores operate a system that enables U.S. and Canadian visitors to collect V.A.T. rebates in the currency of their choice at Dublin or Shannon Airport on departure. Some stores give you the rebate at the register; with others you claim your refund after you've returned home.

Refund forms, known as tax-free shopping cheques, must be picked up at the time of purchase, stamped by customs, and mailed back to the store before you leave for home. It may take months for your refund to be processed. Many merchants work with a service such as Global Blue, which has offices at major ports and airports, and refunds your money immediately in return for a 4% fee.

If a store gives you a refund at the register, you'll also be given papers to have stamped by customs. Put the papers in an envelope (also provided by the store), and mail it before you leave. Most major stores deduct V.A.T. at the time of sale if goods are to be shipped overseas; however, there's a shipping charge.

When leaving Northern Ireland, U.S. and Canadian visitors can also get a refund of the 17.5% V.A.T. by the over-the-counter and the direct-export methods. Most larger stores provide these services on request and handle the paperwork. For the over-the-counter method, you must spend more than £75 in one store. Ask the store for Form V.A.T. 407 (you must have identification—passports are best) to be given to customs when you leave the country. The refund will be forwarded to you in about eight weeks (minus a small service charge) either in the form of a check or as a credit to your charge card. The direct-export method, where the goods are shipped directly to your home, is more cumbersome. V.A.T. Form 407/1/93 must be certified by customs, police, or a notary public when you get home and then sent back to the store, which will refund your money.

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