Taxes & Tax Refund

– Taxes are usually included in the prices of hotel rooms, restaurant meals, and items purchased in shops.
– The price on the tag is what you’ll pay at the register.
– The airport departure tax, about 600 Kc, is usually included in the price of airline tickets.
– The Czech V.A.T. is called DPH (dan z pridané hodnoty), and there are two rates.
– There are three VAT rates in Czech republic with the standard rate at 21%. This rate is applied on most taxed goods like gifts, souvenirs or clothing. The first reduced rate is 15% and it’s subject to food, eating in restaurants or accommodation services. Medicines and books are subject to 10% rate.

Tax Refund
– Exported goods are exempt from the tax, which can be refunded.
– All tourists outside the EU are entitled to claim the tax back if they spend more than 2,001 Kc in one shop on the same day.
– When making a purchase, ask for a V.A.T. refund form and find out whether the merchant gives refunds – not all stores do, nor are they required to.
– Have the form stamped like any customs form by customs officials when you leave the country or, if you’re visiting several European Union countries, when you leave the EU.
– After you’re through passport control, take the form to a refund-service counter for an on-the-spot refund (which is usually the quickest and easiest option),
– or mail it to the address on the form (or the envelope with it) after you arrive home (the processing time can be long, especially if you request a credit-card adjustment).
– Global Blue is a Europe-wide service with 300,000 affiliated stores and with refund counters at major airports and border crossings.
– Its refund form, called a Tax Free Check, is the most common across the European continent.
– The service issues refunds in the form of cash, check, or credit-card adjustment.
– Global Blue (www.globalblue.com).