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-   -   vat tax (https://www.fodors.com/community/europe/vat-tax-180856/)

alice Jan 20th, 2003 08:23 AM

vat tax
 
we are taking a 2 day side trip from Paris. A questions about vat tax:<BR>Do we get our vat taxes (we will spend over 200 eauros) back from airline/train tickets and from our hotel?<BR>Thanks!<BR><BR>

Bobbi Jan 20th, 2003 08:26 AM

<BR>No.

Alec Jan 20th, 2003 08:40 AM

Not all EU countries levy VAT on airline or rail tickets. But even if they did, you still can't reclaim it together with VAT element of your hotel bill. Only items which you export intact can VAT be reclaimed, by buying them in shops that operate the reclaim system. There is a minimum amount you must spend.

alice Jan 20th, 2003 08:46 AM

Thanks. I was not going to claim both hotel and travel tickets together, but separately. But I understand, from Alec's post that only products, not services, can be reclaimed. Is that correct?

Eye Spy Jan 20th, 2003 09:25 AM

Go straight to the source. It's all explained here.<BR>www.globalrefund.com<BR><BR>You can't get a VAT refund on train tickets and rail tickets in Europe. This is for items you export only.

Bobbi Jan 20th, 2003 11:37 AM

EYE SPY---Do you really post from work???

Howard Jan 20th, 2003 12:20 PM

A previous poster is correct. You cannot get VAT refunds for services such as airline tickets and hotel rooms.

Eye Spy Jan 20th, 2003 12:45 PM

Bobbi: Yes I post from work because I'm extremely bored.

kay Jan 20th, 2003 12:57 PM

Eye Spy: You are a source of so much helpful information! I am planning a month in Paris and you've given me such great tips. Do you live in Paris or do you know so much about it because of many visits? Just wondering...<BR>Kay

Eye Spy Jan 20th, 2003 01:03 PM

Kay: I live in Paris (most of the time), and I'm happy I was able to give you some information for your upcoming trip and hope you have a very memorable time.

zzz Jan 20th, 2003 01:05 PM

Eye Spy: good for us you are bored, so you can share you knowledge!<BR>Global Refund has been mentionned here before. Do you know how much they charge for their service? Example:<BR>if you buy a 1000 Euro item, and the VAT you pay to the store is f.ex. 20 %, thus 200 Euro, how much is the refund from Global Refund?

MoneyMan Jan 20th, 2003 01:33 PM

Sorry to be pedantic, but if you buy an item costing 1000 euro (with 20% VAT included - by law marked price must be tax-inclusive), then the amount of VAT charged isn't 200 euro, but 1000 -(1000 divided by 1.2) = 166.66 euro.

John Jan 20th, 2003 01:35 PM

I agree. Always read EYE SPY post. Most informative on this board!!!!<BR>Don't leave that job. Keep posting

Alice Jan 20th, 2003 03:21 PM

Thanks for all the info! You've been real helpful.<BR>Alice

Eye Spy Jan 21st, 2003 09:48 AM

According to the Global Refund website,<BR>VAT is a percentage of the total purchase price of a product. This percentage varies greatly from country<BR>to country. The VAT can be between 3% and 22%. Global Refund takes out an administrative fee from the VAT-amount (so Global Refund's fee is taken from the conversion rate from EURO to USDOLLAR they use [also on their website]; you aren't charged anything additionally). The refunded percentage can be anywhere between 1,43% to 19%.<BR><BR>This is your situation for a hypothetical amount of EU 1000 spent:<BR><BR>Your expenses -&gt; Included VAT<BR>1000 EUR -&gt; 163.8 EUR<BR>1068.26 USD -&gt; 174.98 USD<BR>VAT rate = 16.38%<BR><BR>Hope this helps! Happy shopping.

Eye Spy Jan 21st, 2003 01:00 PM

John: thanks for the nice remark. Have a great day!

zzz Jan 21st, 2003 02:52 PM

Thanks, Eye Spy for taking the time.<BR>But their website does not say anywhere what the fee is. &quot;The calculator is without this fee&quot;.<BR><BR>They seem to like to keep it vague, but you get an idea from their text<BR>&quot;The VAT can be between 3% and 22%....the refunded percentage can be anywhere between 1,43% to 19%.&quot;<BR>So they take anywhere between 1.57 and 3 % of the all in value.<BR>Example: if you buy something in France for 1000 Euro (nett) + the 19.6 % TVA = 1196.00 Euro, rightfully you are entitled to get 196 Euro back from the store.<BR>GR will take about 3 % of the full TTC amount of 1196 = 35.88. In other words they charge you a little over 18 % of 196 to get the TVA back.<BR><BR>I think their service is very convenient for the occasional traveller, but for a large amount it makes a substantial difference, and then I would rather deal with the store directly where possible.

Eye Spy Jan 21st, 2003 02:56 PM

But it would be the same if you dealt with the store because the store uses Global Refund. I am unaware of the store just discounting the 20% tax off the total price as your VAT refund. They couldn't do that because it would show up on their receipts they must show to the French gov't. And in overregulated France, that is suicide for a store owner. Global Refund is going to get its commission in the difference between the two so you are correct. I had read the same paragraph on their website. Nevertheless, I do not believe you have a choice. Yet again, I could be mistaken.

zzz Jan 21st, 2003 04:22 PM

Eye Spy, <BR><BR>I have done some more reading on the company the last hour. I have also bought a lot of tax free stuff in Europe in the past, the traditional way.<BR><BR>You are right in that a lot of shops have now signed up with GR, because they take the hassle out of the refund process, for the store owner as well, and it is possible if not likely (especially in large cities with heavy tourist traffic) that many will now refuse to refund it any other way but through a GR check.<BR><BR>And of course, very few owners (unless you know them well) will discount on the spot. You will have to have your invoice stamped and send it back to the store just the same, after which he/she credits your credit card. <BR>By the way, if you don't send the invoice back to GR, they will bill you a penalty, so same difference. <BR><BR>But legally, you do have a choice. As far as I can see, GR is merely a private service provider (HQ in Sweden), call it a 'clearing house', except in some countries (like Lebanon)where they have an exclusive agreement with the government.<BR><BR>I take my hat off for them in that they found a great niche in the market, that they have contributed to make some tourists aware of the possibility to get a refund at all, and yes, they are definitely the way to go for the occasional traveller, and for smaller amounts.<BR><BR>What I don't like is the way they keep their percentages purposely vague. They are NOT taking 2 or 3 %, but around 18 % of the amount they refund. Then again, if they were to advertise that, they wouldn't be as succesful, right?<BR><BR>So I remain convinced that, if you buy a big ticket item, and you tell the store that you want them to refund to you directly or there is no sale, they will cooperate.

kam Jan 21st, 2003 04:29 PM

No refund for anything consumed within the country---tickets, food, hotels etc. If you have a major purchase that you are leaving from Paris to take home, get the necessary forms and be sure to allow enough time to file them at the airport.


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