Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 28.04.2017, 00:55
Newbie
 
Join Date: Jan 2017
Location: Bassersdorf
Posts: 3
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
wjurek has no particular reputation at present
Global Blue - is it only option for Tax Free?

In some shops in Germany (eg. TK Maxx) they offer vat refund with use of Global Blue. For small amounts it makes not much sense to go this route cause charges are ridiculus. Example VAT paid 26 EUR, Global Blue offers to pay back 10 EUR, if I want to get it in cash they charge additional 5 EUR which sums up to 80%

My question is if it is possible to not use Global Blue but instead fill standard form (http://www.lindau.de/wp-content/uplo...cheinigung.pdf) stamp it at the border and go back to to shop and ask for cash? Can this shop refuse to pay it back if I don't use Global Blue?
Reply With Quote
  #2  
Old 28.04.2017, 01:24
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 12,505
Groaned at 98 Times in 87 Posts
Thanked 19,073 Times in 8,471 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: Global Blue - is it only option for Tax Free?

Reimbursing VAT is just a nicety to the costumer. Be happy with what you get or shop somewhere else.
Reply With Quote
The following 4 users would like to thank aSwissInTheUS for this useful post:
The following 2 users groan at aSwissInTheUS for this post:
  #3  
Old 28.04.2017, 01:38
curley's Avatar
Forum Legend
 
Join Date: Oct 2006
Location: canton ZH
Posts: 11,671
Groaned at 190 Times in 157 Posts
Thanked 13,139 Times in 6,855 Posts
curley has a reputation beyond reputecurley has a reputation beyond reputecurley has a reputation beyond reputecurley has a reputation beyond reputecurley has a reputation beyond reputecurley has a reputation beyond repute
Re: Global Blue - is it only option for Tax Free?

Quote:
View Post
Reimbursing VAT is just a nicety to the costumer. Be happy with what you get or shop somewhere else.
To be honest, I never get the German VAT back. I get the stuff much cheaper even including their VAT - they get the tax. A win-win situation. That's how I see it.
Reply With Quote
The following 2 users would like to thank curley for this useful post:
  #4  
Old 28.04.2017, 13:46
Senior Member
 
Join Date: Apr 2013
Location: Currently in Switzerland
Posts: 364
Groaned at 10 Times in 6 Posts
Thanked 320 Times in 124 Posts
logo123 is considered knowledgeablelogo123 is considered knowledgeablelogo123 is considered knowledgeable
Re: Global Blue - is it only option for Tax Free?

Quote:
View Post
In some shops in Germany (eg. TK Maxx) they offer vat refund with use of Global Blue. For small amounts it makes not much sense to go this route cause charges are ridiculus. Example VAT paid 26 EUR, Global Blue offers to pay back 10 EUR, if I want to get it in cash they charge additional 5 EUR which sums up to 80%

My question is if it is possible to not use Global Blue but instead fill standard form (http://www.lindau.de/wp-content/uplo...cheinigung.pdf) stamp it at the border and go back to to shop and ask for cash? Can this shop refuse to pay it back if I don't use Global Blue?
I have had mixed success with this approach. Even within the same chain.
Some are more comfortable offering you the full amount even though you dont go for the Global Blue approach. Others insist on Global Blue.
Part of the reason is that the logistical complexity is reduced for them.
But I also have a sneaky suspicion that the chains may get some kind of a cash back through these organisations. But have no way to confirm the same.
Personally I avoid Global Blue because of how much of the amount they keep.
Reply With Quote
This user would like to thank logo123 for this useful post:
  #5  
Old 28.04.2017, 14:12
Guest
 
Posts: n/a
Re: Global Blue - is it only option for Tax Free?

If the retailer is signed up to Global Blue, it is the only way.

What you need to remember is Global Blue give a kick back to the retailer from the massive administration charge they charge which incidentally is on a fixed percentage.

Irrespective if your purchase cost you $100.-- or $10'000.--, the percentage is exactly the same. Bit unfair really when the admin charges are identical irrespective of the amount in question.

Go figure.
Reply With Quote
The following 2 users would like to thank for this useful post:
  #6  
Old 05.05.2017, 15:54
Newbie
 
Join Date: Jan 2017
Location: Bassersdorf
Posts: 3
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
wjurek has no particular reputation at present
Re: Global Blue - is it only option for Tax Free?

That is not true
Reply With Quote
  #7  
Old 08.05.2017, 22:29
Junior Member
 
Join Date: Jul 2015
Location: Zurich
Posts: 96
Groaned at 4 Times in 3 Posts
Thanked 56 Times in 30 Posts
RoastedRhino has earned some respectRoastedRhino has earned some respect
Re: Global Blue - is it only option for Tax Free?

I don't know about Germany, but in Italy, it is quite common to offer the option of VAT refund without Global Blue. You have to stamp the invoice and bring it back to them within three months, and they pay cash back to you.

When a shop has a contract with Global Blue, it is my understanding that they cannot offer the service from other alternative companies, but they still have the option of producing a regular "export invoice" (if they like and if they know how to do it).

I try to avoid Global Blue at all costs, the fees are unacceptable if you spend more than trivial amounts.
Reply With Quote
This user would like to thank RoastedRhino for this useful post:
  #8  
Old 09.05.2017, 00:25
Guest
 
Posts: n/a
Re: Global Blue - is it only option for Tax Free?

Quote:
View Post
I don't know about Germany, but in Italy, it is quite common to offer the option of VAT refund without Global Blue. You have to stamp the invoice and bring it back to them within three months, and they pay cash back to you.

When a shop has a contract with Global Blue, it is my understanding that they cannot offer the service from other alternative companies, but they still have the option of producing a regular "export invoice" (if they like and if they know how to do it).

I try to avoid Global Blue at all costs, the fees are unacceptable if you spend more than trivial amounts.
Why would the retailer want to do this ? It gives him a headache for accounting, he has to pay you back the full VAT without the kickback from Global Blue so as you can understand, plenty of costs and headaches, sod all gain for the retailer
Reply With Quote
This user would like to thank for this useful post:
  #9  
Old 09.05.2017, 08:00
Junior Member
 
Join Date: Jul 2015
Location: Zurich
Posts: 96
Groaned at 4 Times in 3 Posts
Thanked 56 Times in 30 Posts
RoastedRhino has earned some respectRoastedRhino has earned some respect
Re: Global Blue - is it only option for Tax Free?

Quote:
Why would the retailer want to do this ? It gives him a headache for accounting, he has to pay you back the full VAT without the kickback from Global Blue so as you can understand, plenty of costs and headaches, sod all gain for the retailer
Because some customers prefer to shop in those places that offer this service. Otherwise, according to your reasoning, why do they accept credit cards? Why do they gift wrap your purchases?
Reply With Quote
This user groans at RoastedRhino for this post:
  #10  
Old 09.05.2017, 09:42
Guest
 
Posts: n/a
Re: Global Blue - is it only option for Tax Free?

Quote:
View Post
Because some customers prefer to shop in those places that offer this service. Otherwise, according to your reasoning, why do they accept credit cards? Why do they gift wrap your purchases?
Obviously we shop in different shops.

If you're buying a handbag at Chf 10k or a Rolex at whatever, you usualy do not have such amounts of cash with you, and if you do, it is considered in most countries, apart from Switzerland, as having come from a non declared source.

This is why people use credit cards.

Shops like credit cards as they do not have to worry about light fingered employees nicking Chf 10k in cash and doing a runner.

Gift wrapping. If i spend Chf 10k on a handbag, not only do i expect a very high level of service or arse wiping if you prefer, meaning subservience, gift wrapping, offering me a coffee or a glass of wine, smiling when i pay, laughing at me weak jokes and continue to smile when they hold the door open as i leave the shop

This is part of the service for luxury goods.

Go to Manor and they will give a colourful bag or some paper and you wrap yourself, this is the difference.

Big name shops are signed up to Global Blue for the reasons previously stated, namely the kickback they recieve. They are not interested in individual people and making individual VAT returns, their system is not set up for it, it creates accounting confusion beyond belief and it goes against the contract they have with Global Blue.

Risking the contract the contract they have with Global Blue, means also risking the rebate they recieve every quarter, for the full turnover....

Trust it is now clear to you how the high end shops operate.
Reply With Quote
  #11  
Old 09.05.2017, 10:11
Junior Member
 
Join Date: Jul 2015
Location: Zurich
Posts: 96
Groaned at 4 Times in 3 Posts
Thanked 56 Times in 30 Posts
RoastedRhino has earned some respectRoastedRhino has earned some respect
Re: Global Blue - is it only option for Tax Free?

I'll just tell you my experience, it may be because I shop in places where I can find nice people.

I bought few hundreds euros of clothing and I asked for tax refund. They explained me that I can use global blue or bring the invoice back to them. I say that I prefer the second option. They say "Sure!" (in Italian) and they press a button on the cash register. The invoice now has a line that says that it is for export. They attach a copy of my permit B and they grow everything in a drawer. I pay and I say goodbye.

I then went to a jewelry. I bought a 5k watch, and ask for VAT refund. They mention Global blue, I ask for an export invoice. They say OK and they get a copy of my ID. Done.

Every time I shop, I come back to those places and I assume they know it.

Side comments. If a store hands wrap my purchases based on the price, that is pretty cheap of them. But sure, sometimes it's just a nicer bag.

Credit card exist because people want credit. Cash handling can be solved with debit cards. I paid the same watch above with a credit card that gives me a 2% cashback, hence their fees are at least 2%.

It seems that your mileage may vary in different countries then, so take this just as my first hand experience.
Reply With Quote
  #12  
Old 09.05.2017, 10:42
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 29,650
Groaned at 2,098 Times in 1,566 Posts
Thanked 35,418 Times in 16,800 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Global Blue - is it only option for Tax Free?

Quote:
View Post
why do they accept credit cards?
Because in Italy purchases over EUR 999 cannot be made in cash.

Tom
Reply With Quote
  #13  
Old 09.05.2017, 11:23
estiqaa's Avatar
Member
 
Join Date: Jan 2016
Location: Basel
Posts: 123
Groaned at 0 Times in 0 Posts
Thanked 187 Times in 85 Posts
estiqaa is considered knowledgeableestiqaa is considered knowledgeableestiqaa is considered knowledgeable
Re: Global Blue - is it only option for Tax Free?

Quote:
View Post
Because in Italy purchases over EUR 999 cannot be made in cash.

Tom
Well, now the limit is EUR 2999.99 and is still only for Italian citizens/residents. Extra EU citizens not resident in Italy have no cash limits, although they are required to give a copy of their passports and sign a declaration regarding citizenship and residency. A bit of bureaucratic involved, however for you guys willing to spend tens of thousands should not be a problem, in posh shops they know what to do to please you.

A little bit on topic: last christmas I bought a nice Italian ice cream machine, asked for an export invoice extra UE and payed no VAT. There are many possibilities, depending on the seller willingness of course.
Reply With Quote
This user would like to thank estiqaa for this useful post:
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Global Blue - tax reclaim motus Finance/banking/taxation 32 20.01.2016 21:49
Short term contract in the UK - What is the best tax option for me? Savski Employment 21 09.10.2015 18:23
Global Blue Tax Refund in Apple Store Geneva RockyMM Finance/banking/taxation 0 16.12.2013 15:25
Rural in Vaud - Is satellite my only option? TootPop TV/internet/telephone 4 23.07.2013 21:06
Apple Store - Tax Refund - Global Blue SamaelSeraphim Finance/banking/taxation 18 03.10.2012 10:08


All times are GMT +2. The time now is 14:43.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0