23 Dec 2006

VAT Refund

Fun bought a laptop at Currys three weeks ago. When doing research for the laptop, we also did some researches re the Value Added Tax (“VAT”) refund. We noticed that according the UK tax rules, we are entitled to get the VAT refund if we will leave the UK with the laptop ‘by the last day of the third month following that in which the goods were purchase for an immediate destination outside the EU’. Based on the example given, I understand that the third month following December 2006 is March 2007 and the last day of March 2007 (the third month) will be 31.03.2007.

As we will be leaving the UK on 21.03.2007, we therefore requested the staff to issue us the VAT refund form and he agreed to do that. However after making the payment, we were informed by the Customer Service Manager that she can’t issued the form as our departure date is more than three months from the purchase date. I explained the rules to her but she told me that was the instruction from the HM Customs & Excise and that she can’t help me even though she was also aware of the rules.

As the VAT refund would be in the region of £60-£80 and we do not want to lose this money, we requested to return the laptop and asked for full refund of the purchase price (we are entitled to do this as long as we didn’t open the package and use the laptop). Only then the manager advised us there was an alternative i.e. we take the laptop home and come back to the shop with the receipt at the end of the month, then she can arrange for the laptop to be returned and resell to us on a later date, so that she can issue us a new receipt together with the VAT refund form. We took her advice and went back to the shop this afternoon and got everything settled within 30 minutes.

This experience reminded us that:-
i. We must know our rights as a customer; and
ii. We must insist to enforce our rights.

Otherwise, most probably, no one will help you.

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