VAT Refund, Hungary

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Sep 19, 2015
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#2
On 12/24, I used the VAT cash refund service at the Budapest airport. If the VAT is indeed 27%, I was shorted by $50. Do I have any recourse? Thanks.
You do not get the full 27 percent back as there is a processing fee. Also getting cash back often involves a fee per invoice — there is often no fee on VAT refund credits to a card.

This is normally spelled out on the VAT refund form.

Attached is a copy of one of my old forms.
 

Attachments

Likes: Neil Maley
Sep 19, 2015
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#3
One can see that the VAT was GBP 49.58 and the service fee was 16.58 leaving me 33. This is a form from the UK. Notice the text about cash fees.

I do not know what company you used but they all operate the same. They have to take a fee otherwise they cannot pay staff —
 
#5
Thanks, Christina. I did notice that the VAT % is 21, not 27. I have all the documents, but it still looks as if I was shorted by $40. Not sure if it's worth pursuing, but it doesn't seem right!
 

Neil Maley

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Dec 27, 2014
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#6
I find that these are rarely worth pursuing because there is always an excuse as to why they come up with what they come up with. I've heard "the store didn't charge you VAT" (which is true - some stores do that when you show the card) to the service fee stories.
 
Sep 19, 2015
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#7
Could the difference be the cash handling fee? I know in FRA the fee is is euro 3’if the refund is between 5 and 50 Euros — and that is per form (purchase) and not the grand total. Also if one asks for the euros to be converted to dollars there is likely a mediocre exchange rate. I know Hungary is not on the Euro I am giving examples of where I use the service.

Usually a receipt is given with the breakdown —also if a store makes a mistake on the form there can be problems.

Did you get a proper receipt if it was done in person?
 
Likes: Neil Maley
Jul 15, 2016
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#8
I do this a few times per year and rules always state that there are at least 1 or more commissions. One of them is fixed so the more you spend, the more it dilutes. In the obtained receipt (stamped by customs) there is the first “net” amount to receive. Then, after cashing it, there is another commission (and in general a poor exchange rate because they wouldn’t give me euros because it is not my local currency. Last time they were equaling euro= dolar so a -20% devaluation). Thats why I prefer to receive the refund by credit card, no commisions and it gakes ~7-10 days.