Buying a DUTY FREE camera from Dixons at Heathrow

Following up to Ken Tough :

True. Prices within the UK include the 17.5% Value Added Tax (VAT).
If you buy on the high street, you can actually claim that VAT back
after you leave the country.

Only if you are traveling back to a non-EU country.
--
Tim C.

In article ,
Ken Tough wrote:

True. Prices within the UK include the 17.5% Value Added Tax (VAT).
If you buy on the high street, you can actually claim that VAT back
after you leave the country. You just need a form from the retailer,
and get it stamped before you check in at the airport (carrying the
goods out of the country with you). They will mail you a cheque
for 17.5% of what you paid.

I looked at prices for the Nokia E61. 349 pounds. Even if you got 20%
VAT back, it's still way more than what you'd pay in the US, under $400.

On Thu, 13 Jul 2006 00:53:39 GMT, Ken Tough
wrote:

SNIP
True. Prices within the UK include the 17.5% Value Added Tax (VAT).
If you buy on the high street, you can actually claim that VAT back
after you leave the country. You just need a form from the retailer,
and get it stamped before you check in at the airport (carrying the
goods out of the country with you). They will mail you a cheque
for 17.5% of what you paid.

Hi

Sorry to be pedantic, but that is not strictly correct.

Let's assume you bought an item costing £100 which included 17.5% VAT;
what you would actually get refunded is £14.89, NOT £17.50.

This is because something costing £100 INCLUDING VAT, breaks down to a
VAT-free cost of £85.11 plus 17.5% of this sum (£14.89) adding up to
your £100.

In other words, you cannot work out the VAT-free cost of an item by
just deducting 17.5% of the purchase price; the way to do it is to
divide by 1.175.

Regards
KGB

KGB (KGB) wrote:


In other words, you cannot work out the VAT-free cost of an item by
just deducting 17.5% of the purchase price; the way to do it is to
divide by 1.175.

Or simply multiply by 1/1.175

You won't believe how many people believe that buying a stock at a 15
percent discount means you gain 15 percent if the price doesn't change.
(The gain is actually 15/85, not 15/100)

On Tue, 18 Jul 2006 02:48:04 GMT, mrtravel
wrote:

KGB (KGB) wrote:


In other words, you cannot work out the VAT-free cost of an item by
just deducting 17.5% of the purchase price; the way to do it is to
divide by 1.175.

Or simply multiply by 1/1.175

You won't believe how many people believe that buying a stock at a 15
percent discount means you gain 15 percent if the price doesn't change.
(The gain is actually 15/85, not 15/100)

Which is even betterr.

************* DAVE HATUNEN ) *************
* Tucson Arizona, out where the cacti grow *
* My typos & mispellings are intentional copyright traps *

On Tue, 18 Jul 2006 02:48:04 GMT, mrtravel
wrote:

KGB (KGB) wrote:


In other words, you cannot work out the VAT-free cost of an item by
just deducting 17.5% of the purchase price; the way to do it is to
divide by 1.175.

Or simply multiply by 1/1.175

You won't believe how many people believe that buying a stock at a 15
percent discount means you gain 15 percent if the price doesn't change.
(The gain is actually 15/85, not 15/100)


I used to own a shop many years ago. My usual markup was 50% - i.e.
my profit was 33.3%

Regards
KGB

KGB wrote:
On Thu, 13 Jul 2006 00:53:39 GMT, Ken Tough
True. Prices within the UK include the 17.5% Value Added Tax (VAT).
If you buy on the high street, you can actually claim that VAT back
after you leave the country. You just need a form from the retailer,
and get it stamped before you check in at the airport (carrying the
goods out of the country with you). They will mail you a cheque
for 17.5% of what you paid.

Hi

Sorry to be pedantic, but that is not strictly correct.
....
In other words, you cannot work out the VAT-free cost of an item by
just deducting 17.5% of the purchase price; the way to do it is to
divide by 1.175.

Not pedantic at all, that's a very good point. I was very sloppy
there, and in fact
I remember scratching my head briefly when calculating what I was due
back
after buying my last camera in the UK.