FlyerTalk Forums - View Single Post - Can someone please explain the placement of CDG duty-free re immigration/passport?
Old Aug 23, 2009 | 5:21 pm
  #7  
Lobengula
 
Join Date: Mar 2008
Location: ARN
Programs: Mucci Entry Level, BA Gold, EK Pleb, SK Pleb, QR Pleb
Posts: 3,585
Originally Posted by tfar
I did that only once and it was long ago. But don't you have to show the merchandise when you arrive at the destination? Do they give you the money back directly at the counter or do you get it back only after you showed the merchandise at the destination? I always thought that in order to get your TVA/VAT from one place back you had to have proof that you did declare the import in the other place (if it is over the limit of free stuff you can take).

I do know for a fact that the counter is before you go through security. Everyone can go there and the bathroom are common area, too.

It seems to be way too easy to do this as suggested by the OP. Also, why 17%? Isn't the TVA in France 20.1%? If you pay cash it is possible to get 10% of discount for a Rolex they have in stock. So that would be 30% total. Very nice savings. OTOH, buying the watch in Switzerland might result in even better savings.

I have done this a couple of times although it was some years ago, and not in France. However, I'm 100% sure that you don't show the merchandise at arrival.

The procedure as I remember it:

1. Purchase goods in ordinary stores and save the receipts
2. After clearing passport control. Show goods and receipts to VAT refund office (departure lounge)
3. Refund immediately paid in cash (currency of your choice)

France has obviously added some complexity with special VAT bills and prescreening before check-in.

It's difficult to stop that the goods will leave the country. Departing and arriving passengers don't mix in the same area. If you decide to leave departure and exit the airport, they will most likely have a note that you got a VAT refund. Otherwise I could buy a fully refundable ticket, purchase something expensive, enter departure lounge, reclaim VAT, leave airport and refund my ticket.

Nothing stops you from giving the goods to another departing passenger, but it doesn't matter. The goods will leave the country.

Now, you can of course still abuse the system. For example, I live in France and I really want that very expensive Rolex. Here's what you do:

1. When a friend is visiting from abroad. Ask him to follow you to the Rolex-shop and buy a Rolex. Friends name on receipt.
2. Pay friend
3. Buy a fully refundable ticket same time/date as friend
4. Friend shows Rolex and receipt at airport and receives money
5. Friend gives Rolex and money to you
6. Friend boards his plane and leaves country
7. You tell staff that you don't intend to fly and wish to leave airport
8. Refund ticket

I'm sure that they are aware of this loop-hole and will check that Friend used his credit card when auditing the receipts. And it's of course also illegal.

So it's not easy and involves a lot of work
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