It’s been a dream of mine to own a Chanel bag for a few years now. On our most recent trip to Europe that dream became a reality! As I started to plan what kind of bag I wanted to buy it got me thinking about where I wanted to buy it. You may be wondering why it matters where I buy it? Well, if you’re looking to buy any luxury brands it could be well worth it to buy it in Europe.
This was going to be my first Chanel bag so after much research I concluded that I will go for the classic Chanel quilted flap bag. This bag comes in various sizes and colors and some colors are only available for a limited time. Not knowing when I would purchase another Chanel bag, I decided I will go for the classic black in the medium size. Next question was what material? All the Chanel bags are made of genuine leather so the two options in this size and color was either lamb leather or calf leather (caviar). Lamb leather is the smooth feeling leather and caviar is the perforated texture leather. I’ve read from my research that the lamb leather is very delicate and can be damaged easily if one is not careful. I am a fairly careful person with my belongs, however if I was going to spend 4 figures on a handbag I wanted to make sure if lasts FOREVER! Keeping the sensitivity of the material in mind, I opted for the caviar leather.
Once we finalized our plans to Europe I knew I wanted to buy my bag in Paris. The birthplace of Chanel, what a perfect place for my first Chanel bag purchase! Once I started looking into boutiques that are close to our locations, I discovered that the first Chanel boutique was located on Rue Cambon. When we first got to the store we were assigned a stylist, Audrey, who would assist us. I told her it was my first Chanel purchase and she showed my the bag I wanted and a couple other colors that were available for that season. Knowing this was my first Chanel bag, she advised me to go for the classic black I wanted, I agreed!
Let’s talk about pricing now:
Europe Price: $5,492 (including 20% VAT); VAT Refund (12%): $659
Total Paid: $4,833
Local Retail Price: $5,600; CA Sales Tax (9.25%): $518
Total Price: $6,118
Price Difference: $1,285
Oh my God, right? The difference is quite astonishing! All prices quoted in the European Union include VAT (Value Added Tax). Non European residents can claim a VAT refund at the airport by showing the completed VAT form, your passport or proof of non European residency and refund method (cash or credit card). A minimum EUR 175 must be spent in one purchase, you cannot accumulate purchases to meet the threshold. This threshold is only applicable to goods and certain goods maybe be excluded. When you make a purchase at a store, ensure you get a VAT form. From my experience, they will complete and the form for you and you will need your passport at the time of purchase.
The completed form needs to be ready to be submitted at the airport either before security check or after depending on the EU nation you are in. Our departure airport was Charles De Galle and the VAT submission was completed after security. When you submit the form, ensure you have the item in hand in case they need to verify. We wanted to get the refund via credit card so we were directed to a kiosk to complete the submission. The refund is 12% of the VAT paid for credit card refund, the other 8% is deducted as fees. If opting for cash refund the % is lower. Ensure you take a picture of the approved submission for proof. We were advised the credit card refund would take approximately 2-3 weeks, to my surprise it was refunded within 1 week. The VAT refund varies from different European Union countries, make sure you find which one applies to your before your purchase. A side note, it’s easier if the VAT refund is submitted in the same country as the purchase.
A few things to keep in mind:
1. Make sure you use a credit card with no foreign transaction fees
2. Meet the minimum EUR 175 purchase requirement in the same transaction
3. Do your research to ensure the location you intend to purchase from carries the style and type of bag
4. Try and plan the purchase to be made on the last few days of your trip, you don’t want to be traveling with such an extravagant item for multiple days
