What I Learned From My First Tax-Free Luxury Shopping Trip to Paris

When I was asked to be an emotional support shopper for a friend who was planning a luxury shopping trip to Paris, I eagerly accepted the challenge.

I was quickly introduced to the world of designer handbags and gained a better understanding of why this type of purchase is more advantageous in Europe compared to the U.S.

I’ll review the basics of tax-free shopping in Europe, demystify the experience of shopping at Hermès, and provide tips for tax-free shopping success. Warm up those credit cards, and let’s get shopping!

Tax-Free Shopping Basics

The value-added tax, or VAT, is a consumption tax that is already included in the price of nearly everything you buy in the European Union.

VAT rates vary by product. In France, the standard rate is 20%, with medicines and pharmaceuticals at 10%, food and books at 5.5%, and other specific products and services at 2.2%.

To receive a VAT refund for new, unused purchases in France, you must be a permanent resident of a non-EU country, be at least 16 years old, and have been in France for less than 6 months. You must spend a minimum of €100 (approximately $115) in the same store on the same day. The typical VAT refund is 10% to 15% of the total purchase price, after service charges.

It is essential to request a tax-free form and show your original passport at the store at the time of purchase. If the form is not filled out with complete and accurate details, it will be rejected by customs, and you won’t receive your refund.

When leaving France, if it’s your last destination before leaving the EU, you need to get your tax-free form validated by a customs office or a self-validation kiosk. You have 3 months from the date of purchase, plus the issuing month of the form, to validate it, and it must be stamped within 6 months of the issuing date.

You can receive your refund in cash, but you’ll likely want to receive it back to your credit card to receive a higher percentage return. Note that in France, a cash refund is limited to €1,000 per day.

Hot Tip:

While you’ll likely receive the best VAT return when making significantly expensive purchases, remember that any purchase over €100 (approximately $116) qualifies, which could include items such as cheaper designer bags, clothing, jewelry, and beauty products.

Why Tax-Free Shopping in Europe Is a Boon for Americans

Lower European prices make shopping for luxury goods in Europe significantly more affordable for Americans.

Considering a luxury purse can cost over $10,000, saving several thousand dollars on that purchase compared to the cost of buying it in the U.S. could easily cover the cost of a comfortable trip to Paris.

Ideally, this type of trip is most advantageous for those with high-ticket items on their shopping list. Book your flight to Paris using miles, then book your Paris hotel with points to save even more money (for shopping, of course).

With that said, let’s crunch a few numbers based on real-world examples from November 2025 at Hermès, Longchamp, and Citypharma in Paris. Comparing the cost of several items after a VAT refund to the estimated U.S. retail price (pretax), shoppers can easily save 10% to over 25% on their purchases.

* Sourced from PurseBop based on May 2025 pricing.

While most items have a comparable U.S. price, you may benefit from some pharmaceutical or beauty items being available overseas that aren’t available in the U.S. Use your judgment for these items to evaluate what a fair, comparable price may be.

Hot Tip:

Just because your purchases in France are tax-free doesn’t mean you don’t have to pay taxes on them when you bring them home to the U.S. You’re expected to declare your overseas purchases honestly and may be assessed a duty at the U.S. Customs and Border Protection agent’s discretion. Regulations and tariffs are constantly changing; be sure to check the CBP website for up-to-date details.

My First-Ever Experience Luxury Shopping in Paris

My friend planned a 2024 Paris shopping trip that included Hermès, Louis Vuitton, Printemps, and La Vallée Village (a luxury outlet mall outside of Paris). Based on the deals she got, she was eager to take the lessons she had learned from that experience and plan another trip for 2025.

Our primary stop: Hermès. In 2024, she waited in line as a standard shopper and connected with a sales associate, or S.A., with whom she had a great rapport and kept in touch with. This also established her profile at the store, which is important in the world of Hermès, as it tracks your shopping history.

In 2025, she made an appointment in advance with her sales associate for a specific day and time and had a list of the items she was after.

Our first stop was cashmere scarves, where most were easily over $1,000 each. The scarves were in a display case, and the sales associate was happy to pull any out for my friend to try on.

These were found on the ground level of the store, which felt very much like the ground level entrance of a department store — super busy and a bit chaotic.

As we progressed through my friend’s list to look at belts, fragrances, and shoes, we were escorted up to the second level. The environment was calmer, fewer customers were milling about, and Champagne was offered.

From my brief few days learning about the world of Hermès shopping, I found that attempting to purchase a purse or bag requires securing a leather appointment. You can try your chances in the leather lottery by registering online the day before your desired appointment. In our case, neither of us was a lottery winner, but the sales associate was able to help my friend secure a same-day appointment.

When we returned to the store, we were immediately escorted upstairs to a semiprivate room. My friend had previously discussed her top style, size, and color preferences with her sales associate, which she then confirmed with the leather sales associate.

Although I don’t know much about the world of luxury handbags, I have heard of the Hermès Kelly bag. My friend was speechless when the exact bag she had been after was unboxed in front of her.

These bags are an investment, for sure, and this particular model was priced at nearly $11,000. After a 10% VAT refund, this bag cost just under $9,900. Compared to $13,300 in the U.S. before tax, my friend saved at least $3,500 (26%) — easily enough to cover the cost of our Parisian shopping adventure!

After the easiest yes of the day, it was off to select a Twilly, a slim scarf that is often wrapped around a purse handle for protection.

My friend charged her purchases to her new American Express^® Gold Card, which helped her meet the minimum spending requirements for the welcome bonus offer. Her only regret was not having another new card to charge purchases to so that she could hit another welcome bonus offer!

Hot Tip:

Hermès purchases are packaged in a large white bag. However, if you’re concerned about carrying your new items around Paris, the store can also arrange for them to be couriered to your hotel at no additional charge.

Getting Your VAT Refund

When exiting France, have your goods, original receipts, and passport ready for inspection. At the airport, start at the self-service validation kiosk and scan your barcode. The kiosk may require you to present your paperwork to a customs officer.

Credit card refunds are processed within 5 to 7 working days. Cash refunds in France are in euros and have a lower rebate rate.

Tips for Luxury Shopping in Europe

Create a game plan: know where you want to shop, what you’re looking for, and what your budget is. Prepare for disappointment if a rare item, size, or color is unavailable. Consider visiting the outlet malls early to grab a discounted deal before paying full retail price in a regular store, and review the dates of any upcoming sales. Always carry your passport with you when shopping and double-check that the store will complete a VAT form on your behalf.

It is helpful to research the U.S. value of the items you’re considering purchasing and your potential customs liability upon reentry to the U.S. Watch exchange rate fluctuations to take advantage of when the euro is weaker against the dollar.

If you have larger-ticket items on your shopping list, consider applying for a new credit card in advance of your trip to earn a welcome bonus offer (or 2). Review your credit card purchase protection to understand your coverage better.

Think about your luggage when planning a shopping trip. You may need to nest an extra empty bag (or 2) in a larger bag to bring your purchases home in. Be sure to pack spare luggage locks to secure your belongings in your hotel and during transit. Keep your items unused until after you’ve exited the country. Plan to have your valuables in your carry-on bags so they can stay with you at all times, and be aware of any restrictions on carry-on weight. Once at the airport, give yourself enough time ahead of your flight to get through the tax refund queue.

Most importantly, have fun!

Final Thoughts

Have you been inspired to plan your next shopping spree in Europe? If luxury items are on your wish list, the savings from lower European prices and VAT refunds can more than offset the cost of a few days in Paris, Milan, or Barcelona. With a little planning, you can ensure that you follow the necessary processes to maximize your refund experience.

Have a great VAT refund experience to share with our readers? Let us know in our Level UP Travel Facebook Group! Good luck and bon voyage!