Originally Posted by
star_world
That hasn't been my experience - in the last few years almost all transactions I make by credit card when in Europe but not resident there
are processed as the OP described - I am charged the "tax free" price (which isn't tax free at all, only 50-60% of the tax is removed) and then I fill in the form at the airport when leaving the EU. I never see the remainder charged to my card.
Just to be clear, I am aware of the other method (where the store is effectivly offering to defer charging you the VAT component - providing the stamped export form is returned within a given time frame), however I think it is very much a depreciated and out of favour method - especially since it places a considerable loss liability on the merchant.
[Indeed, I'd be surprised if any still doing this didn't pre-auth the charge (i.e. put it on hold) on the card account, to cover themselves.]
Regarding the ammount refunded, while most shops do now charge for VAT refund processing (or for the administratiion of not-charging VAT), I'd be amazed if it was 40-50% they were charging! Which shops are these? What types of goods?
A 50% fee would be ridiculous.
- Are you sure you are calculating the VAT element that you think should be removed/refunded correctly?