Are you planning a trip to Prague and wondering about the VAT refund? You’ve come to the right place! In this article, we will discuss how much VAT refund you can expect to receive in Prague and provide you with all the essential information you need to know.
What is VAT?
VAT stands for Value Added Tax. It is a consumption tax that is applied to goods and services in many countries around the world, including the Czech Republic. The standard VAT rate in Prague is currently 21%, but there are reduced rates for certain essential goods and services.
Who is eligible for a VAT refund?
If you are a non-EU resident visiting Prague, you may be eligible for a VAT refund on your purchases. To qualify for a refund, make sure that:
- Your purchases are made within 90 days before your departure from the European Union.
- You have spent at least 2,000 CZK (Czech Koruna) on eligible goods from the same retailer on the same day.
- You have obtained a valid tax-free form from the retailer at the time of purchase.
Please note that not all retailers participate in the VAT refund scheme, so it’s always advisable to look for shops displaying Tax-Free Shopping signs or ask the staff if they offer tax refunds.
How much can you expect as a VAT refund?
The amount of VAT refund you can expect depends on several factors. Firstly, there may be administration fees charged by the tax-free service provider or retailer processing your claim. These fees typically range from 1% to 4% of your total purchase amount and may vary between providers.
Secondly, keep in mind that not all items are eligible for a VAT refund. Goods that are intended for personal use and not for commercial purposes generally qualify for a refund. However, certain items such as tobacco, alcohol, and fuel are typically excluded from the refund scheme.
Lastly, the VAT refund amount is calculated based on the VAT rate applicable at the time of purchase. In Prague, the standard VAT rate is 21%, so if you have met all the requirements and your purchases are eligible for a refund, you can expect to receive approximately 15-20% of your purchase price back.
How to claim your VAT refund?
To claim your VAT refund in Prague, follow these simple steps:
- At the time of purchase, ask the retailer for a tax-free form and make sure it is correctly filled out.
- Keep all your receipts and tax-free forms together in a safe place.
- Prior to leaving Prague or the European Union, present your purchases along with the tax-free forms to customs officials at the airport or border crossing.
- After receiving customs validation on your forms, visit a tax-free service provider’s desk at the airport or use their self-service kiosks if available.
- Submit your validated tax-free forms at the service provider’s desk and receive your refund in cash or by credit card.
Please note that there may be restrictions on when and where you can claim your refund. It’s essential to familiarize yourself with these procedures before leaving Prague to ensure a smooth process.
In conclusion
VAT refunds can be an excellent way to save money on your purchases while visiting Prague. By understanding how much VAT you can expect to receive as a refund and following the necessary procedures, you can make the most of this opportunity. Remember to keep track of your receipts, obtain valid tax-free forms, and consult with the tax-free service provider or retailer for any additional information.
Happy shopping and enjoy your trip to Prague!