FlyerTalk Forums - View Single Post - Topcashback US and UK on Europe stays - Is VAT included in calculations?
Old Apr 25, 2018 | 1:44 am
  #6  
hightide
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Thanks for the reply shahr04360.
In practice, I have seen most cash back from UK merchants calculation counting with VAT hence I wanted to double check.

Originally Posted by Lionheart
Thanks. I'm presuming the hotel themselves won't know, as any bill is in local currency? I stay in the same hotel so don't want to cause any issues by somehow making it awkward for them.
Also, I'm guessing the vast majority of UK banks take a fee for converting dollars into sterling - so a couple of extra % cashback on the US site is wiped out by the bank conversion.

Going through a cash back site won't change the currency you will be billed in.

I transfer my GBP from Topcashback UK to my paypal account. When the mid-rate was 1 GBP to 1.42 USD, paypal converted it using 1.37 hence getting a commission of 3.5%.

Basically - is it really worth it and actually any more profitable after fees?
It's still worth it if you are booking CP/Indigo (12%) or Intercontinental (15%) using the UK site as the US site awards just 10%.
After a bad exchange rate, you would be left with 11ish % and 14ish % respectively (if doing the exchange through paypal).
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