The TRAVELER'S JOURNAL: July thirty-first, with tax relief for tourists.

Value-added taxes are still a foreign idea to many Americans, but numerous nations have dealt with them for decades. Since these taxes are levied during the production and distribution process rather than the point of sale, they're built into the purchase price. But what's added can also be given back. Foreign visitors can often claim VAT refunds, which cuts the real cost of an item. Usually, refunds are only provided for goods physically carried or mailed out of the country, but some nations, such as Canada, also allow them for hotel rooms. Since VAT taxes run from five to 33 percent, rebates can be significant.

The actual tax varies from country to country and even item to item, as do procedures for claiming refunds. All nations in the European Economic Union participate in "Europe Taxfree Shopping," a program which standardizes the process. Just show your passport to a participating merchant, and you'll get an ETS voucher for the amount of the refund, less a fee of about 20 percent. Most countries require visitors to spend a minimum amount in the same store on the same day, but several items can usually be totalled on a single form.

Then when you leave your final EEU county, you have to show your purchases and vouchers to the appropriate customs official, who validates your refund. Sometimes refunds in the country's currency can be obtained on the spot. If not, have it allocated to your credit card account. Otherwise you may have to wait several months for a foreign currency check to be mailed to your home address.

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