How to Save Money Shopping for Designer Brands in Paris!
Welcome to the ultimate guide on How To Save Money Shopping for Designer Brands in Paris! Did you know buying European Designer Brands are cheaper if you buy them in Paris? You may be wondering, how is that possible? You’re in luck because I’m going to explain to you in full detail how to buy luxury brands between 10-35% off in Paris vs the US.
For years now, I’ve been telling my friends and family to come visit me and Paris and go shopping because Luxury brands and designer brands are cheaper in Europe vs the US. As someone who loves shopping and loves to save money on luxury brands, this is one of the best kept secrets on how luxury brands are 10-35% Cheaper in Paris vs US. I’m going to break it down for you as simply as possible to explain how it is cheaper to shop for luxury brands in Paris, France.
Below I get into more detail about which designer brands are cheaper in Paris VS The US, but some of the most popular designer brands that are cheaper in Paris include, Hermes, Dior, Chanel, Louis Vuitton, Burberry, and many more!
Table of Contents
Why European Designer Brands are more expensive in the US
In order for European designer brands to be sold in the US, the brand has to pay a special tax called import tax (tariff tax). According to the Taxation and Customs Union the tax amount varies from product to product, however, on average a European designer brand has to pay roughly between 2-10% in import tax to be able to sell their luxury products in the US. This cost is passed on to the consumer and is reflected in the price, thus making European Designer Brands more expensive in the US.
In fact in 2020, according to the US Government, the US almost raised the import taxes on luxury goods by 25%, but luckily this extra luxury import tax didn’t go through.
Let’s not forget about the transportation costs these companies have to pay in order to transport their products to the US from Paris. Both the import tax and the transportation costs are all built into the European luxury brand pricing in the US.
On top of the import tax / transportation costs, in most states (minus Alaska, Delaware, Montana, New Hampshire, and Oregon) you have to pay an additional sales tax. A majority of these luxury brands are located in some of the most expensive State Sales tax states. For example, California has a 7.25% Sales tax on luxury brands and NYC has an 8.875% Sales Tax on luxury brands.
In short, the Import tax (tariff tax), international transportation costs, and the state Sales tax for European designer brands cause the price of luxury brands to be more expensive in the US vs Paris, France. Now let’s take a more detailed look on how to receive the VAT tax refund in Paris when you purchase anything over 100 Euros from luxury brands.
How to Receive the Digital VAT Tax Refund in Paris
When you go shopping in Paris, France, you do not have to pay the import tax, transportation costs or State sales tax that you would in the US. The best part is if you purchase something from a designer brand in Paris and spend over 100 Euros, you actually receive a nearly 13.4% refund.
I know it sounds too good to be true, but let me explain in more detail. As a tourist visiting Paris, you are refunded a tax that locals are required to pay called VAT Tax. This is a built-in tax on all goods in Paris. Unlike the US, which gives you the price of an item then at the end when you go to pay the sales associate, there is added Sales Tax. In France, when you look at the price of an item, the VAT tax is already built into the price.
Now that you understand what VAT tax is, there is a short and simple process in order to receive your VAT tax refund back digitally. I’ve outlined the process in 5 easy steps! The digital VAT tax refund amounts to 13.4%. Imagine a 13.4% discount on all those luxury goods!!
Step 1. Download Wevat Tax Refund Application
Sign up Process includes: Email, Creating a password, identifying the departure airport, home address, confirmation that you’re over the age of 16 and Not an EU Citizen (Eligibility)
Click on the shopping tab, and it will walk you through a step-by-step process on how to request an invoice
Little Tip Here: Request a Facture (invoice) address to Wevat( I suggest you to ask if they can issue a facture before shopping. The Shop has a legal obligation to issue invoices upon request.)
Show the “request an invoice: screen that says, “Bonjour, je souhaiterais obtenir une facture au nom de:…” to the sales associate
Do NOT ask for a tax refund form
You can also see some example invoices from other users in the app
Step 3. Take a Photo of the Invoice
By using the in application camera phone, Take a photo of the invoice
***Important*** make sure you Double-check the invoice addressed correctly and verify your information
Step 4. Generate digital refund form
Take a quick selfie in the app to get your identity check as requested by French customs
Once your shopping is complete and all your invoices are uploaded to the app, generate a digital refund form (also a barcode).
Step 5. Scan your form at the tax refund Kiosk
At the departure point from the EU (Train or Plane) Scan the barcode from the Wevat App at the tax refund Kiosk detaxe machine
Within 1 week, receive your VAT tax refund, via your credit card / bank account
In short, one of the ways that European Designer brands are cheaper in Paris vs the US is because of the VAT tax refund process, and now that process is digital! It is so simple and takes minutes to set up. Simply download the application, following the steps, once your app is set up, go shopping and then digitally scan your invoice into the application, lastly, scan it at the departure point. Within one week, your digital tax refund will arrive in your bank account / card! It’s so simple, right?
Now for the fun part, let’s use some real life items and numbers and I can show you the exact price difference on some of the most popular luxury brands in Paris, France. Keep in mind that the VAT tax refund process accounts for roughly 13.4% refund! Today, we will be taking a look at 2 examples, A Burberry Trench Coat from Galeries Lafayette, and a Gucci Jackie 1961 Bag size small bought at Gucci. Pricing as of March 2022!
Galeries Lafayette – Burberry Trench Coat (Long Chelsea Heritage Trench)
Paris, France Pricing
Euro Pricing after VAT Tax refund: (1850 Euros – 13.4%)
Converted to USD
NYC, USA Pricing
USA Pricing after Sales Tax (NYC): ($2,250 + 8.875%)
Price Difference ($2,449 – $1,790)
As you can see from the table above, if you buy the same Burberry Trench Coat at Galeries Lafayette in Paris vs NYC after the VAT Tax refund, it will be $659 cheaper in Paris VS The USA. This is the perfect example for how to save money shopping for designer brands in Paris, France.
Gucci Jackie 1961 Bag Size Small
Paris, France Pricing
Euro Pricing after VAT Tax refund: (2200 Euros – 13.4%)
Converted to USD
NYC, USA Pricing
USA Pricing after Sales Tax (NYC): ($2,600 + 8.875%)
Price Difference ($2,831 – $2,219)
If you buy the Gucci Jackie 1961 Bag Size small, it will be $702 cheaper in Paris vs USA after the digital VAT tax refund! Can you believe how much cheaper these brands are in Europe?
As you can see from the two examples, European luxury brands are at least 30% cheaper in Paris, and some even more. I didn’t anticipate both the Burberry trench coat from Galeries Lafayette and the Gucci Jackie 1961 bag being that much cheaper in Paris! Don’t forget in order to receive the VAT tax refund you must follow the process listed above and I recommend downloading the Wevat Digital tax refund application before arriving in Paris.
Which European Designer brands are cheaper in Paris vs US?
I’ve outlined the most popular designer brands, jewelry brands and department stores that are cheaper to go shopping at in Paris vs the US.
The most popular designer brands that are cheaper in Paris vs the US are the following: Alexander McQueen, Armani, Balenciaga, Balmain, Berluti, Bottega Veneta, Burberry, Celine, Chanel, Chloe, Dior, Fendi, Givenchy, Goyard, Gucci, Hermes, Louis Vuitton, Longchamp, Prada, Salvatore Ferragamo, Tom Ford, Valentino, YSL / Saint Laurent
The most popular designer jewelry brands that are cheaper in Paris vs the US are Boucheron, Cartier, Chaumet, De Grace. And Van Cleef & Arpel.
The most popular designer department stores that qualify for the Wevat digital VAT Tax Refund in Paris are Galeries Lafayette, Le Bon Marche, Printemps, and even Disneyland Paris.
When trying to determine which designer brands are cheaper in Paris vs the US, the best thing to think about is where that brand is headquartered. More likely than not if the brand is headquartered in Europe than it will be cheaper in Paris vs the US. The European designer items that are cheaper in Paris vs the US include bags, clothes, jewelry, luggage, and anything the European designer sells.
The Wevat (digital VAT Tax refund app) application works with a majority of shops in Paris, sometimes in high-end luxury shops, the staff might make your invoice request experience more difficult than it has to be due to other commercial interests. It’s important to note, it’s their legal obligation to issue an invoice upon request. In my experience, I always suggest you use Wevat as long as you can get the correct invoice, if for whatever you cannot you can always choose the tradition in-store / paper VAT Tax refund method instead.
Tips and Tricks for buying Designer Brands at a Discount in Europe
Over the years, I’ve received tons of feedback on the process of buying European Designer brands at a discount in Europe. And tips and tricks to make the VAT refund process easier for you
When purchasing designer bags or luxury goods, pay for those goods in the local currency (aka Euros). Many times credit cards will actually charge you an additional fee to do the currency conversion from EURO to USD
If you are traveling between multiple European Union Countries, drop off the VAT tax refund at your final location before departing the EU.
The UK is no longer part of the EU, so if you are traveling back to the US out of London then you must submit the VAT documents in an EU country before returning to London
Recap on How to Save Money Shopping for Designer Brands in Paris, France vs USA
In short, European designer brands are cheaper in Paris, France. The reason European luxury brands are cheaper in Paris vs the US is because when you buy a designer brand in the US the price already has the built-in import tax (tax tariff), transportation costs and then you have to pay the sales tax, which varies state to state.
The way I look at it is simple, you are already going to be spending the money to buy a designer bag or buy something from European designer brands, if you take into account your savings by purchasing them in Europe, many times it covers a big portion of your European trip to Paris! Or you could always use those savings to buy an additional accessory or luxury item!
Don’t forget to download the digital VAT tax refund app called Wevat before you arrive in Paris to make your shopping experience easier. If you have any questions on which European designer brands are cheaper in Paris or about the Wevat Vat tax refund process in Paris, please let me know! Happy Shopping!