by Scott Laird
Last updated: 8:00 PM ET, Thu June 1, 2017
Louis Vuitton is perhaps one of the most legendary luxury travel brands in the history of travel.
Long the marque of the discerning international voyager, the brand has been synonymous with travel style since intercontinental voyages were measured in months and had just barely begun to take place onboard mechanically powered ocean vessels.
In fact, the brand became well known so quickly that the monograms introduced during the late 19th century to discourage counterfeit are today among the most copied corporate designs on the planet.
I have a strong streak of nostalgia for the bygone days of travel, whether it's royal mail steamers at the turn of the century, fast trains during the golden age of rail or the early, globe-spanning jet aircraft that quickly spawned the moniker "jet-set."
Louis Vuitton luggage was a coveted staple for travelers onboard each conveyance.
I also appreciate high-quality craftsmanship and durability (Louis Vuitton leather goods are repaired by the same artisan crafters that spend years learning how to make them). Finally, Louis Vuitton products are generally made in Europe or the United States, where worker protections ensure that those producing the bags are paid living wages and benefits for their toils.
Now, all these reasons to buy and love Louis Vuitton products are worth the expense-the company famously never discounts its products in order to protect the brand's integrity.
However, many international travelers and lovers of luxury goods know that pricing often varies from country to country-even for the exact same products-because of import duties, taxes, demand pricing and other variables.
For example, I found myself in need of a new handled carry on to replace my beloved Pan Am bag, which I'd carried around the world for years. I was ready for something more durable and, being a lover of Louis Vuitton products, decided to take the plunge on the gorgeous, roomy Carryall. It's a little bit taller and roomier than the classic Keepall-itself a carryon-sized version of the classic handbag Speedy. (Yes, I may be a little obsessed with luggage.)
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The Carryall retails for $1,730 in the United States. In my home state of Texas, sales tax increases that to $1,872.
I considered waiting to purchase the bag when I was in a state that doesn't levy sales tax (like Oregon, where Louis Vuitton has a store in Portland), or in a state with lower sales tax (like Hawai'i where Louis Vuitton has three stores in Honolulu alone).
I had known in the back of my mind that the Euro was at historic lows compared with the U.S. Dollar, and it didn't hit me right away, but I eventually thought, "Why not buy the bag in Paris?"
I'd been meaning to get back for a visit, and Paris in April generally enjoys lovely weather. I checked Louis Vuitton's French site, and voila, Monsieur Carryall is sold for just €1,200. Taxes are already included in the European Union price.
Ten years ago, this wouldn't have been much of a bargain, what with the Euro trading at €1.44 to the dollar. However, the currency has since taken a tumble. When I visited in April, the Euro was near parity (€1.06)-meaning my $1,800 bag in Texas was a mere $1,286.34 with the exchange (at my credit card company's rate).
At a $587 savings, that's almost worth getting on a plane for.
But wait-it gets better. Remember how taxes are included in the price?
Non-EU residents buying goods in Europe can apply for a refund of the VAT on purchases over a certain amount (€175.01 in France; some countries have lower thresholds). Simply let the shop know at the time of purchase, and they'll fill out a form for you to present to customs at the airport upon your departure from the EU.
In France, the VAT is 20 percent. After service fees, €145.20 ($150.20 USD) of the €201.67 I paid in VAT was refunded directly to my card after about a month.
Thus, my net price was $1,136-a savings of $736, or just under 40 percentoff what I would have paid at home.
I did the math before I left home, so I knew what I was buying, how much I was saving and how to collect my VAT refund. So it's worth doing the research before you leave.
A few other tips to share:
-Keep a copy of your passport in your pocket while shopping. Your passport number is needed on the VAT refund form to show you're not a permanent resident of the European Union.
-Don't use your new items while you're in Europe, or pack them in your checked luggage before getting your refund. When having your form validated, the items need to be unused and you may be asked to present them to the Customs officer (I wasn't).
In Paris, you just scan the form and drop it in a drop box for processing, You can also elect to have a cash refund on the spot, but keep in mind cash refunds may be for a different amount and will be paid in Euros.
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-Remember to declare your purchases to customs upon returning to the United States, and allow extra time to pay applicable duty. Keep in mind that duty exemptions can be pooled within the same family. (The $800 USD exemption for non-alcohol and tobacco goods becomes $1,600 if traveling with your spouse).
If you're not sure, ask a Customs officer or declare the items anyway. Remember, duty is only collected at 3 percent on the amount in excess of the exemption, and many customs offices often won't bother collecting duty in smaller amounts-although they have a right to, so you can't depend on having it waived.
The important thing is that you declare anything over the exemption because failure to do so can lead to fines (and if you're a Global Entry subscriber, revocation of your privileges).
-You must have been outside the United States for 48 hours, and you can only use your exemption every 30 days.
-Customs rules can change frequently with little notice, so be sure to get the latest from U.S. Customs and Border Protection before you take your shopping trip abroad.
-Find out more about tax-free shopping in the European Union and other countries before visiting by checking in with service provider Global Blue. You can use their refund calculator to determine your refund amount.
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