Are you planning to buy a Louis Vuitton bag? If yes, then you might be wondering whether it’s cheaper to buy one in France or the UK.
Well, the answer is not straightforward. Let’s dive into the details.
Exchange Rate
The first thing to consider is the exchange rate between the euro and the pound. Currently, 1 euro is equivalent to approximately 0.85 pounds.
This means that if you buy a Louis Vuitton bag in France for 1000 euros, it will cost you around 850 pounds. However, exchange rates are subject to fluctuations and can change at any time.
VAT Refund
France and the UK have different Value Added Tax (VAT) rates. In France, the VAT rate for luxury goods like Louis Vuitton bags is 20%, while in the UK, it’s 20% as well. However, there’s a catch – in France, non-EU residents can claim back a portion of the VAT amount through a tax refund scheme called ‘Detaxe.’
The Detaxe rate is currently at 12%. In the UK, non-EU residents can also claim back VAT through a similar scheme. However, the VAT refund rate varies depending on the product category.
How does Detaxe work?
To claim Detaxe in France, you need to spend at least 175 euros in one store on one day and keep your receipts. When leaving France by air or Eurostar train from a French station, present your receipts and passport at customs to get your Detaxe form stamped. You can then claim back your VAT amount at an airport or via mail within three months of purchase.
Other Considerations
Apart from exchange rates and VAT refunds, there are other factors to consider when buying a Louis Vuitton bag in France or the UK. For instance, the availability of certain styles and colors may vary between the two countries. Additionally, you need to factor in travel costs and time spent on travelling to France if you’re based in the UK.
Conclusion
So, is Louis Vuitton cheaper in France than the UK? It depends on several factors, including exchange rates and VAT refunds.
While it’s true that you can save money by buying a Louis Vuitton bag in France and claiming Detaxe, it’s not always a guarantee. Ultimately, it’s up to you to decide whether it’s worth the effort and expense of travelling to France to buy a Louis Vuitton bag.
- Exchange rate: Consider the current exchange rate between the euro and pound.
- VAT refund: Non-EU residents can claim back VAT through Detaxe in France and other schemes in the UK.
- Other considerations: Availability of styles and colors, travel costs, and time spent travelling.