How to Save Money Shopping for Designer Brands in Paris in 2023!
Ready to learn how to save money shopping for European designer brands in Paris vs the US? Today, I'm going to explain to you in full detail how to save 10%-35% simply by purchasing your luxury goods in Paris, France!
Why European Designer Brands are more expensive in the US
In short, the 3 main reasons luxury brands are more expensive in the US compared to Paris is the Import tax (tariff tax), international transportation costs, and the state sales tax.
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. On average, European luxury brands have 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.
On top of the tariff tax, European brands have to pay for transportation costs to transport their products to the US from Paris. Both the import tax and the transportation costs are reflected into the pricing you see in the US.
In addition to 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.
How to Receive the 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 12% 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. Which means when you go to check out in Paris, you won't have to pay an additional tax like you do in the US.
Price comparisons between Paris, France and US
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 a 12% 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.
Galeries Lafayette – Burberry Trench Coat (Long Chelsea Heritage Trench)
| Paris, France Pricing | |
| Euro Pricing | €1850 |
| Euro Pricing after VAT Tax refund: (1850 Euros – 12%) | €1602 |
| Converted to USD | $1790 |
| NYC, USA Pricing | |
| USA Pricing | $2250 |
| USA Pricing after Sales Tax (NYC): ($2,250 + 8.875%) | $2449 |
| Price Difference ($2,449 – $1,790) | $659 |
| Percentage Difference | 36% |
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.
Gucci Jackie 1961 Bag Size Small
| Paris, France Pricing | |
| Euro Pricing | €2200 |
| Euro Pricing after VAT Tax refund: (2200 Euros – 12%) | €1905 |
| Converted to USD | $2129 |
| NYC, USA Pricing | |
| USA Pricing | $2600 |
| USA Pricing after Sales Tax (NYC): ($2,600 + 8.875%) | $2831 |
| Price Difference ($2,831 – $2,219) | $702 |
| Percentage Difference | 33% |
If you buy the Gucci Jackie 1961 Bag Size small, it will be $702 cheaper in Paris vs USA after the VAT tax refund!
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 is 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 European designer jewelry brands that are cheaper in Paris vs the US includes: 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 Europe. If the brand is headquartered in the US, it will be cheaper in the US
Tips and Tricks for buying Designer Brands at a Discount in Europe
Here are 5 simple tips and tricks for making your shopping experience in Europe easier!
- 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
- When shopping, ask for your VAT TAX Refund, and bring your passport!
- Don't forget to wear comfortable walking shoes for shopping!
Recap on How to Save Money Shopping for Designer Brands in Paris, France vs USA
For years now, I’ve been telling my friends and family to come visit me in Paris and go shopping because luxury brands. As someone who loves shopping and loves to save money on luxury brands, this is one of the best kept secrets.
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!
Sincerely Petite in Paris,
Diane
