FlyerTalk Forums - View Single Post - VAT Calculations and Refunds
View Single Post
Old Sep 7, 2022 | 2:22 am
  #7  
mlin32
10 Countries Visited
Community Builder
All eyes on you!
10 Years on Site
 
Join Date: Jun 2011
Location: FRA/SXB
Programs: FB Silver; Accor Silver
Posts: 3,995
Originally Posted by Landing Gear
Thanks. Using my example, suppose I pay €1,000 for a product. I go to the airport, they inspect it, stamp the form and I mail it back. Some company hired by the retailer gets the form and credits my credit card with €100-110 minus a fee for this transaction. That's what I mean by "processing fee."
The 100 - 110 € that you receive is already net/inclusive of the processing fee.

Like I mentioned, the TVA is 20% in France, this is the "full" amount of the tax (200 €) that the gouvernement gives up when something is exported outside the Union. The commission/processing fee is roughly half of that, so you only get the remaining 100-110 €. It's quite a profitable business.
mlin32 is offline