OpenSky

For people wanting full VAT refunds on Rimowa you are about 3-4 years too late. This was possible before LVMH took over. Alexandre Arnault dad is not rich enough.

hornillas1

I completed the VAT-refund process when I was leaving FRA last week.

Germany has a temporary VAT reduction of 3% (19% to 16%) through the end of 2020.

I purchased an Original Trunk Plus from the RIMOWA retail store in FRA.

The process redeeming VAT was the same at the airport as before the peak of COVID.

Only difference was that the Global Blue desks were no longer staffed and everyone had to drop their envelopes in the mail box for each respective VAT-service company.

Total savings of 13% refund of VAT, after using Global Blue.

OpenSky

Did you include the dynamic currency conversion in your 13% calculation?

So if the desks are not staffed, effectively there is no way to avoid Global Ripoff's currency conversion since presumably they would refund your credit card in your home currency after skimming 5-10% off the top. The desks made it possible to avoid this.

I understand the need for taking a fee to process - the the amount of fees is what I object to. Also if you tried to avoid the currency conversion ripoff, they will still charge you some stupid fee to pay you back. 1 euro in the EU, I paid as high as 5 pounds in the UK.

The UK is about to make VAT refunds thing history when they fully brexit next year BTW

pre LVMH it was possible to get all 19% back.

OpenSky

You obviously have not been to South Africa . I have a cheque from Ned Bank (for a VAT refund ) that I effectively had to throw away because I did not cash it on the day I left ( for purchases made in South Africa) but tried to do it when I returned back to South Africa a week later.

hornillas1

I hold a bank account in the EU.

I take EUR as my form of payment for VAT refunds.

When I am back in the EU, I just spend the money, as normal.

No issues for me.

WilcoRoger

What has it to do with LVMH? You can still get the full VAT back by doing an export declaration yourself (that's what Global Blue and others are doing on your behalf)

OpenSky

And taking it back to the store ( operated by LVMH) after a second visit to get your money back? Have you tired that personally?

WilcoRoger

Why should you want to take it back to the store? Have you ever made an export declaration directly to customs?

(PS - member @bulbmogul seems to have had no issues with Rimowa VAT refund in Dubai)

OpenSky

The way VAT refunds work in the UAE is totally different from how they work in the EU.

In fact I find the very idea of VAT in the UAE a farce, but thats just me.

In the EU - the merchant has to refund the tax though in practicality this is usually done by the third party processor

Global Adventurer

Totally agree. Before the VAT was implemented in 2018, for the most part goods were priced reasonably. I noticed after the fact, not only did most retailers add the VAT, but they also increased their prices on just about everything.

And another thing I noticed on my last visit was how many shady and seedy companies are doing business in Dubai now, including in the malls. My advice to anyone visiting Dubai is stick with well known branded stores because there's just so many counterfeit goods being sold all over Dubai, especially in the Dubai Mall. And even if you go to a branded store make sure you aren't buying their rejects or seconds. The only department store that I could vouch for at that mall is bloomingdales. Mostly all the others are low grade products coming from the same distributor. Yeah, but their VAT is scam.

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WilcoRoger

Ehm, no. The merchant MAY OFFER to refund it and handle the issue with the tax office on your behalf. There is absolutely no obligation for the merchant to do anything. Or Global Blue (or what it is called) can handle it for you - for a fee.
But the traveler may as well handle the whole process himself directly with the tax/customs office (actually most of the work has been already done when he got the customs stamp that the goods have been exported) It takes some trouble especially if you have no working knowledge of the country's language, but you get the full VAT amount back. Or have someone else do it for you for a fee. Your choice.

OpenSky

I have done this countless times in both forms in multiple EU countries. In most cases - the merchant takes the VAT from you up front, in some cases ( depending on the relationship you have with the merchant) they may do a credit card authorization). for the tax due. Its up to you to get it back from the merchant after the invoice has been stamped for export, since they already collected the tax, not from the tax authorites. Thats the system in the Netherlands and Germany, might be different elsewhere. If its a credit card authorization, the authorization is allowed to expire.

The system in the UAE is of course, different And I personally hate Global Blue with a passion