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?
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%
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.
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.
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.
That is not true
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
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.
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.
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.