Claiming local VAT on holiday purchases

[Pipe & Slippers]

Thought this was better off here than in GD…
Was in Madrid last week and bought some shoes for EUR 85.00, and noticed there was a sign saying claim your VAT back, so I thought why not?
Asked at the counter and they printed me off a form and said claim it back at the airport
After doing the requisite fannying around, I got a refund of GBP 4.65
Actually I received GB 4.00 because they didn’t have any small change
Anyone know how the EUR 14.75 morphed into GBP 4.65?
I’m not annoyed, just curious
(Actually had 2 other purchases as well, so all 3 were ~EUR 250, but the other 2 were claimed back in a slightly different way, and this was the one I still have the original receipt for)

 

[Vandle]

No idea how they gibbed you on the exchange rate. Likely some BS admin fee included too.

I did it with a pair of sunglasses I bought in France last month. Girl in the shop entered a few extra details including my passport number and printed me off a form. Told me I'd get 40 euro back. Used a machine / console thingy in the airport on leaving, all I had to do was scan the barcode on the form. It was so quick and easy I just presumed it didn't work as all I got was a completed thanks type message on screen. 5 days later checked my account and noticed the 40.63 euro had been credited. Pretty chuffed.

 

[Martynt74]

That's a weird one. Can only imagine some admin fee/horrific FX rate as per above.

 

[LiE]

Might be a processing/admin fee.

 

[Baldbloke]

Dang. You bin hornswaggled, mah boy. Hornswaggled I tell ya.

 

[kaku]

In Japan they charge you the "pre-tax" price at the point of sale, so there's nothing to claim back. You need to show your passport and I think not so shops can do it though.

 

[Pipe & Slippers]

Thanks for the replies
I reckon it was probably a processing fee of some sort, as some of you have suggested
I actually got the £4 from a currency exchange desk, so I'd guess the Spanish government has outsourced the whole process

 

[Bluecube]

Are VAT refunds available from all foreign shops? When I was in Paris I noticed that only a few seemed to offer it and even then it wasn’t clear what the process was. I certainly never saw any machines at the airport for VAT refunds, not that I was looking

 

[Martynt74]

Are VAT refunds available from all foreign shops? When I was in Paris I noticed that only a few seemed to offer it and even then it wasn’t clear what the process was. I certainly never saw any machines at the airport for VAT refunds, not that I was looking

I'm sure it should be, although i think only some offer it as an easy process, others you have to do it more manually. It's usually only on larger purchases (might even be a threshold)

 

[Vandle]

There wasn't like a line of machines. Just a single one next to the tourist refund desk. It wasn't France either , well physically anyway. It was the French section of Geneva airport.

 

[Pipe & Slippers]

Just found the receipt in my junk mail - EUR 6.12 was the refunded VAT amount, and the exchange rate applied was..

0.7598

Spoiler

which rounded to 0.6537 when they did have the GBP 0.65 in coins! Ouch

Today's rate is ~0.84

There's no mention of a transaction fee, so I've no idea how the Euros transformed from 14.75 to 6.12

 

[mattyfez]

Sweet, can you do this with tabacco if youve paid local tax at source, like at a tabac?

 

[monkey_boy]

is there a way you can do the refund admin once you’re home or does in have to be done in-country

 

[Reuben klang]

is there a way you can do the refund admin once you’re home or does in have to be done in-country

AFAIK you’ve got to be in the country.

 

[D.P.]

Thought this was better off here than in GD…
Was in Madrid last week and bought some shoes for EUR 85.00, and noticed there was a sign saying claim your VAT back, so I thought why not?
Asked at the counter and they printed me off a form and said claim it back at the airport
After doing the requisite fannying around, I got a refund of GBP 4.65
Actually I received GB 4.00 because they didn’t have any small change
Anyone know how the EUR 14.75 morphed into GBP 4.65?
I’m not annoyed, just curious
(Actually had 2 other purchases as well, so all 3 were ~EUR 250, but the other 2 were claimed back in a slightly different way, and this was the one I still have the original receipt for)

You usually only get back the difference in VAT rates

 

[Martynt74]

You usually only get back the difference in VAT rates

I thought you claimed back all the VAT, but then were supposed to declare it when entering the UK (although you're allowed £250 Vat free)

 

[Pipe & Slippers]

I thought you claimed back all the VAT, but then were supposed to declare it when entering the UK (although you're allowed £250 Vat free)

Yeah, I guess that was my expectation. I can’t imagine the Spanish tax authorities handing cash over to HMRC

 

[sithlord]

Ive claimed back the sales tax in Japan, It was 5% last time I claimed it. I heard its gone up to 10% now.

 

[dowie]

You usually only get back the difference in VAT rates

I think you're imagining that.

Anyone know how the EUR 14.75 morphed into GBP 4.65?
I’m not annoyed, just curious

I'd hope it's not the admin fee & FX fee but I'm not sure there is another explanation - did they have an option to receive it in euros? Things like cash points trying to be "helpful" by charging your bank in GBP are often just ripping you off so I'd expect these services offering a helpful refund in GBP would do so too but maybe not to that extent where they've grabbed more than half of the refund! Maybe a flat admin fee distorts stuff for smaller refunds too - I guess really you need to look at the T&Cs of the company that processed it at the airport.

I did wonder maybe a lower VAT rate but I think a purchase of shoes would be charged at the full 21% rate.

 

[Martynt74]

I did wonder maybe a lower VAT rate but I think a purchase of shoes would be charged at the full 21% rate.

Yeah, i took a look after and there's not much at the lower VAT rate, and then the lower rate is around ~5% which would put it under £4.65 anyway