As a rule, luxury brands are cheaper in stores located in their headquarters than in other places. For instance, if a luxury brand is based in Italy, its items will naturally be cheaper in Italy than in other countries.
Louis Vuitton’s headquarters are based in Paris, France; therefore, its items are cheaper there than in other places. Thus, if you are visiting Paris anytime soon, you may want to grab the opportunity to purchase a classy LV item.
Several factors constitute the high cost of luxury items; we are considering Louis Vuitton in this case. Apart from the cost of manufacturing, quality of materials, and others, the VAT on the items also informs their prices.
However, if you reside in France, Europe, you qualify for a VAT tax refund for every LV item you purchase. Keep reading to know why Louis Vuitton is cheaper in France than in other countries and how much.
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Why Is Louis Vuitton Less Expensive in France?
As we said earlier, Louis Vuitton is headquartered in Paris, France, Europe. The rule of thumb is that every brand headquartered in Paris, France, will be cheaper there than anywhere else.
The major reason for the lower prices is taxes, ranging from import taxes to VATs. For instance, the LV brand headquarters in France doesn’t have to pay fees such as import, state, federal, or transportation taxes.
Additionally, when you buy an LV item in France, you qualify for a VAT tax refund, saving up to 12%. When you buy a Louis Vuitton item, like the Louis Vuitton Neverfull, you will receive a VAT refund form. The store you purchased the bag from will request for your passport, however, to give you the form.
Once you present that, the store will scan the form at a kiosk at the airport when you’re departing France. Then, you will get a Value Added Tax (VAT) refund immediately on the item you purchased.
The VAT rate is 20% presently, but it generally depends on the item you purchased (or are purchasing). Also, a processing fee will be deducted so that you won’t receive the full 20%.
Louis Vuitton Prices in Paris vs. Hong Kong vs. the USA: What Are the Differences?
Let’s compare the difference in prices of the Louis Vuitton Neverfull MM in Paris, Hong Kong, and the US. As of February 2022, the LV Neverfull is priced at $2,210.16 in the USA, including the Sales Tax. That is, assuming you purchased the bag in New York City.
Meanwhile, in Paris, the same bag is priced at 1,500 Euros. However, you get a VAT refund, which is usually 12% after all the deductions have been made (that is, 1,500-180 Euros).
Thus, a Louis Vuitton Neverfull bag will cost 1,320 Euros (1,493 USD) if you purchase it in Paris, France. On the other hand, the price of an LV Neverfull bag in Hong Kong is HK$ 16,300 (2,089.61).
Additionally, there has been a significant increase in bag prices this year. For instance, the previous pricing of the LV Neverfull in the US, New York, was $1,513.36, plus the Sales tax. Meanwhile, it was HK11, 502.33 in Hong Kong, and 1,040 (minus 12% VAT, totaling 1,015) Euros in Paris, Italy, and Europe.
Is Louis Vuitton Cheaper in Paris than in London?
Although Louis Vuitton is generally cheaper in Europe, it also depends on where in Europe you’re buying. For instance, since Louis Vuitton is based in Paris, it is cheaper in Paris than in other parts of Europe like London. Once again, let us compare the prices of the LV Neverfull MM in Canvas in these two European countries.
As of July 2022, the Louis Vuitton Neverfull bag cost 1,410 Euros in London, which when converted to USD is $1,686. However, the same bag, with the same material and size, costs only 1,320 Euros in Paris.
The bag originally cost 1,500 Euros in Paris, but when you deduct the 12% VAT refund, you have 1,320 Euros ($1,355). Thus, there is a significant $331 difference between the price of LV Neverfull MM in canvas in London and Paris.
You can always purchase the bag in London if you don’t mind the difference. However, traveling to Paris is worth it if you desire to buy the LV bag at a cheaper price.
What Are Some Tips for Purchasing an LV Bag in Paris?
If you are purchasing a Louis Vuitton bag in Paris, here are some tips that can make the process easier. As you probably guessed, the savings on LV items in Paris means the stores there are busier than in other places. The good news is that the LV Paris headquarters have a larger supply of bags, with some peculiar to Paris. That said, below are some tips for buying a Louis Vuitton bag in Paris amidst the store’s busy schedule;
- Decide on the particular LV handbag you want to purchase before you get to the store. Due to the busyness of the store, the staff will not have the time to help you choose.
- Go to the LV store with your passport to get the VAT refund. Ensure you go with your original passport; the store will need to take your passport details to authenticate the refund.
- Call the LV Paris store ahead for information on stock and pricing to help you choose the bag you want. Getting an LV customer care representative on the line is pretty easy, so don’t hesitate to call. Calling ahead will help you plan your budget and take along important items, like your passport, that you may need.
Conclusion
Considering the fact that Louis Vuitton is based in Paris, France, its items are cheaper there than in other places. That is because the stores do not have to pay certain import and transportation fees.
Also, if you shop with your passport, you qualify for a VAT refund, usually capped at 12% after all the deductions. Thus, if you are planning to visit France, be sure to visit Paris to get your favorite LV bag at a cheaper price.