VAT Refund Admin Fees

[yonatan1983]

Hi,

 

I was wondering if anybody knows what the legal amount of admin fees can be taken for a VAT refund - and the law or directive that deals with it? I was recently visiting the UK and shopped in 2 stores. One takes a 5 GBP admin fee, and the other a 40% admin fee (in this case 25.63 GBP). I have previously used other stores and the maximum I have been charged was 10 GBP.

 

I think 40% is a complete rip-off. (Before anybody suggests I don't use this store again, they are one of the only retailers, and the only accessible one near to where I stay with the products I want.)

 

Thanks!

[caro]

It just says on HMRC site that they can charge an admin fee, but no indication of any limits. http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000141&propertyType=document

[Conniff]

I think you should name and shame that store.

[caro]

You could also contact HMRC and ask for clarification explaining that you've been charged 40%. See what they say.

[yonatan1983]

Thanks caro & Conniff. I just spoke to a nice bloke from HMRC who said that there isn't a guidance as to a fair administration fee. The administration fee is for the 3rd party, in this case Tax Free Worldwide. However I do not have to use TFW, the store could have let me post the forms to them and they can take care of the refund. The TFW service is meant to just make it easier, as HMRC will only send the envelope on if it is pre-paid. Had I known this I would have prepared a pre-paid envelope for HMRC to send on. I am now going to contact the chain directly before naming & shaming them. (It is called a Form 407. The admin fee is a charge for the external company.)

Edited June 11, 2014 by yonatan1983
more information from HMRC bloke

[caro]

Thanks for the info. It may help others with the same problem.

[yonatan1983]

I have just written an e-mail to the chain involved (after calling to find out the correct e-mail address). I will update you when I receive a response.