Do they charge sales tax in France/Italy for luxury goods?

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Do they charge sales tax in France/Italy for luxury goods?

2007-08-22 09:24:20 · 3 answers · asked by shopper 1 in Business & Finance ➔ Taxes ➔ Other - Taxes

3 answers

In Europe, they have "value added tax" (VAT), instead of sales tax.

2007-08-22 09:29:26 · answer #1 · answered by StephenWeinstein 7 · 1⤊ 0⤋

They pay VAT in both of those countries on virtually all goods, not just luxuries. I believe that Italy is 19% and France is 22%. It's calculated differently from sales taxes in the US but the net result is almost identical to a sales tax at those rates.

2007-08-22 15:50:30 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋

VAT is applied to all goods, but it's higher on luxury goods and lower on goods such as food or books.
If you are not a EU citizen, usually in luxury shops located in tourist places you can ask for a refund.

2007-08-23 04:08:00 · answer #3 · answered by mand 4 · 0⤊ 0⤋