CONSUMER CHOICE FOR VAT REFUND EXPANDED
Destinations
Tax-free shopping for international travelers becomes easier. International travelers do not have to pay VAT on their purchases in the Netherlands. They may shop duty-free throughout the European Union because the VAT on their purchases can be refunded.
According to a Court ruling last week, international travelers also have the right to decide how they will reclaim this tax. According to the court, they may choose whether the refund is handled by specialist companies – which charge a commission for handling – or that consumers may reclaim the VAT on their purchase directly through the retailer, and recover the full tax amount due.
Commission costs not required
The reason for the Court’s decision was the various agreements between VAT refund-specialist companies and retailers. Hereby consumers would be required to have their VAT refund be handled by the company with which the retailer had entered into a contract. As a result, consumers were forced to pay commission costs for the intermediary, and thereby deprived of the possibility to do the processing themselves, and in so doing, to receive their full tax amount due.
Your own money
The company that brought the case for European legislation before the Court is Vatfree.com. Founder and CEO Joni Smeenk, is happy with the decision, which makes tax-free shopping procedures for international travelers more transparent. Smeenk: "The right of consumers has triumphed. VAT tax is actually the consumer’s own money. We find it stands to reason that consumers themselves may determine how to recover their money. Any agreements between retailers and companies specialized in VAT refunds are therefore completely independent."
Tax-free shopping
Consumers residing outside the EU may have the VAT on their purchases in the Netherlands returned. The scheme exists to ensure that they don’t pay sales tax twice; both in their own country and in the Netherlands. To be able to claim back the VAT, the traveler must adhere to a number of conditions. There must be a minimum amount purchased per store; the purchases must be taken to the home country; and the purchase receipt must meet a number of criteria.
Although all international travelers who meet the conditions are entitled to VAT refunds, not all retailers cooperate, because of the administrative burden it entails for them. Through a special shopping guide, shoppers can now view city by city, which stores are offering tax-free shopping. All regulations and the shopping guide can be found on the website of Vatfree.com.
About Vatfree.com
Vatfree.com helps international travelers in reclaiming their full VAT over all their shopping in the EU. Vatfree.com aims at maximizing the transparency of tax-free shopping and the recovery of VAT. With its services, Vatfree.com wants to make the European Union more attractive for international tourists, to stimulate business and to contribute to a dynamic economic environment.
Commission costs not required
The reason for the Court’s decision was the various agreements between VAT refund-specialist companies and retailers. Hereby consumers would be required to have their VAT refund be handled by the company with which the retailer had entered into a contract. As a result, consumers were forced to pay commission costs for the intermediary, and thereby deprived of the possibility to do the processing themselves, and in so doing, to receive their full tax amount due.
Your own money
The company that brought the case for European legislation before the Court is Vatfree.com. Founder and CEO Joni Smeenk, is happy with the decision, which makes tax-free shopping procedures for international travelers more transparent. Smeenk: "The right of consumers has triumphed. VAT tax is actually the consumer’s own money. We find it stands to reason that consumers themselves may determine how to recover their money. Any agreements between retailers and companies specialized in VAT refunds are therefore completely independent."
Tax-free shopping
Consumers residing outside the EU may have the VAT on their purchases in the Netherlands returned. The scheme exists to ensure that they don’t pay sales tax twice; both in their own country and in the Netherlands. To be able to claim back the VAT, the traveler must adhere to a number of conditions. There must be a minimum amount purchased per store; the purchases must be taken to the home country; and the purchase receipt must meet a number of criteria.
Although all international travelers who meet the conditions are entitled to VAT refunds, not all retailers cooperate, because of the administrative burden it entails for them. Through a special shopping guide, shoppers can now view city by city, which stores are offering tax-free shopping. All regulations and the shopping guide can be found on the website of Vatfree.com.
About Vatfree.com
Vatfree.com helps international travelers in reclaiming their full VAT over all their shopping in the EU. Vatfree.com aims at maximizing the transparency of tax-free shopping and the recovery of VAT. With its services, Vatfree.com wants to make the European Union more attractive for international tourists, to stimulate business and to contribute to a dynamic economic environment.
Latest Articles
