German tax refund policy?

As far as Germany is concerned, as long as one of the following two conditions is met, you are eligible for tax refund:

1. Non-EU residents (that is, the permanent residence indicated on the passport is outside the EU) ); foreign residents with Schengen short-term visa (for Chinese, it means holding a short-term visa with a stay period of less than three months: tourism, business, and visiting relatives are all acceptable).

2. Non-EU residents; foreign residents with Schengen long-term visas can also enjoy tax refunds for goods purchased three months before their last departure. (Before leaving the country, long-term visa holders need to go to the city hall where they live to issue a departure certificate to prove that they are leaving the country permanently)

Note: Minors aged 15 and under do not enjoy tax refunds policy. In addition, tax refunds are not available for those who study abroad, nor are exchange students and visiting scholars who have been studying abroad for more than three months.

2. Which products can be tax refunded?

1. Except for motor vehicles and accessories and consumption in the service industry (such as transportation, catering, accommodation, mobile phones/SIM cards signed with contracts), tax refunds are available for other commodities. Products such as clothing, shoes and hats, jewelry, bags, watches, cosmetics, etc. that are purchased frequently can all be refunded.

2. If you reach the minimum tax refund amount, you can get a tax refund if you purchase more than 25 euros in the same store. Generally speaking, this minimum amount refers to the amount of shopping in the same store, not the amount of shopping in the entire country. Of course, if you purchase goods at different counters in a large shopping mall, as long as the total amount reaches the standard, you can go to the main service desk to apply for a tax refund.

3. The purchased goods must be carried out of the country by the person within three months (both consignment and hand-carrying are considered to be carried by the person, but not mailed back. Outbound refers to leaving the EU, that is, if the itinerary includes many places within the EU country, all tax refunds for purchases should be processed at the airport where you finally departed when returning to your country)

4. The goods requiring tax refund must be unopened and used. (The theory is that it cannot be used, but it is generally not tested. Occasionally, there will be spot checks and items that match the tax refund list are required, so it is recommended not to cut off the price tag)

3. How much tax can be refunded?

The so-called tax refund refers to the value-added tax (Mehrwertsteuer, also called sales tax Umsatzsteuer in Germany). Germany's standard value-added tax rate is 19%, and the preferential tax rate for food and books is 7%. But why many people say that they can't get that much refund at all? There are two reasons:

1. The value-added tax is 19% of the net price, not the selling price. The selling price of the goods we pay for shopping is tax-included, which already includes 19% value-added tax. For example, for a product priced at 100 euros, it can be calculated that the actual net price is 84.03 euros, and the other 15.97 euros is VAT. In other words, the tax refund is only 19% of 84.03, which is about 15.97 euros. Therefore, the tax refund standard is actually 15.97% of the selling price, and the specific amount will be indicated on the invoice.

2. Most merchants in Germany will entrust tax refund service companies to handle tax refunds, and tax refund companies will charge handling fees according to certain standards, so the actual amount we get will be less. Taking Global Blue, the largest tax rebate company, as an example, products priced below 7,000 euros can receive a refund ranging from 10% to 14% of the selling price, while products over 7,000 euros can receive a refund of 14.5% of the selling price.

So, if a merchant handles tax refund directly, the tax rate is 15.97% (if the merchant does not charge a handling fee); if the merchant entrusts a tax refund company, the tax rate is 10%-14.5%. (The principle and algorithm of 7% are the same)

4. Where can I get tax refund and what is the procedure?

1. Direct tax refund in stores:

Overseas tourist cities will have shops with blue, white and gray special signs for tax free shopping (tax free shopping). After completing your shopping at the store, ask the clerk for a tax refund form with your consumption receipt and passport, fill in your name, passport number, purchase amount, tax refund amount and other items. After paying a certain handling fee, you can get a tax refund in cash on the spot. Some countries also require a tax refund form stamped with a tax refund stamp and a receipt confirmed by the customs to be sent back to the tax refund company.

2. Airport tax refund:

This is currently the most important tax refund channel. When shopping in shopping malls, some store clerks will proactively provide you with a tax refund form, while others require you to submit it yourself. After getting the tax refund form, fill in your personal information, or give your passport to the clerk to help fill it out. When leaving the country, go to the airport tax refund window to present the items to the customs officer, give him the completed tax refund form to have it stamped, and then you can collect the money.

3. Apply for tax refund after returning to the country:

But this kind of shopping must be done in overseas stores with special signs for tax refund shopping. After shopping in these stores, you will need to show your passport and fill out a global tax refund check. When returning to the country, present the purchased goods, invoices and passport to the customs officers at the airport, and stamp the two-part customs list. Then you can go to designated domestic outlets to apply for tax refund.

Note:

The tax refund period, that is, the time between the purchase date and the customs stamp date, is not allowed to exceed three months.