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Is there anyway to avoid using Global Blue when tax free shopping on the continent?
Once they take their cut, you’re getting back an equivalent of 12% VAT. I’m surprised that they have the market so sewn up it feels uncompetitive.
Step into a boutique in France or Italy and its… Global Blue.
Well, whoever facilitates your tax refund needs to cover the costs of the systems and people and get all the necessary approvals from tax authorities etc etc. and they need to be allowed to make a profit. In order to cover all this any additional benefit to you from a competitor is likely to be rather marginal.
Tax free is nowt new. It used to be run by customs at the airport. In some countries that don’t do the Global Blue scam I think it’s still the same.
It may be nothing new, but public bodies/customs can no longer justify the resources (ie cost) of providing a VAT refund service for rich foreigners out of general taxation. They have therefore allowed private enterprise to fill that gap on a user pays basis.
The same applies to airport/passenger user charges that governments used to cover. They too have adopted the principle of ‘user pays’ as it’s not reasonable to ask non travelling taxpayers to foot the bill. Most governments are sensible enough to recognise that they aren’t very good at running businesses so they hand that role to private companies and regulate the charges.
There’s now 3 big options for tax free shipping in the EU. Global blue, Planet and the latest (but only in France right now) WeVat. You’ll aLao find some smaller vat refund companies but only at specific retailers. All of them will charge you fees, global blues fees are definitely higher than others in my experience. WeVat are aiming to disrupt and charge a fixed 22% fee for processing vat refunds. One limiting factor here is that it’s driven by the retailer as well, ie if that retailer uses global blue then you’re using global blue unless you shop elsewhere. The best bet is to just minimise the fees you get charged. That means things like taking a tax refund to a card rather than as cash, using a card with more favourable foreign exchange terms like Chase or just buying from countries where you get higher vat refunds.
I prefer the system in Japan where the retailer deducts the tax at the checkout before payment without any fees etc. Seems much more simple.
I prefer the system in Japan where the retailer deducts the tax at the checkout before payment without any fees etc. Seems much more simple.
In Japan much more is based upon on trust. In Europe there are too many people trying to play the system so greater complexity/bureaucracy is required to reduce potential tax loss.
I’d also like to remind you the utu app, which returns your tax as Miles with a good enough bonus.
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