Tax Free Shopping
All prices in Germany include a value-added tax (VAT) of 19 per cent. 7 per cent are levied for magazines, books and food. These rates are similar to sales taxes elsewhere. However, it is always included in the stated price.
Many shops and outlets in Germany have joined a refund scheme which uses tax-free cheques: Buyers may request its refund cheque upon their purchase. So, citizens from non-EU countries, who buy goods in Germany to take them home, can agree upon reimbursement of VAT, when the goods are purchased. When leaving the Internal Market of the European Community, the goods must be presented to a customs officer, who will testify the export. The cheque then can be reimbursed with the service company that runs the scheme and deducts some service charge. Some of these service companies run offices at major airports, ferry ports and other ports of entry and exit. If on-the-spot payment does not work out, travellers may send their cheques by way of mail and get the money transferred to their bank account.
Alternatively, customers can deal with the vendor directly, who can refund VAT when he receives the certification of the goods being exported and a proof of the customer's foreign residence. Using this procedure the buyer may save the service charge, but it entails more bureaucratic hassle and possibly charges for international money transfers.
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