Before I went to Europe, I was asking a lot of questions about the process towards claiming VAT. There are many answers but they all seems too complicated. Now, I am back so I would like to share my knowledge with you girls, hopefully in a less complicated manner.
I started off in Milan, moved to Vernice, proceed to Arlon & Lux before ending in Paris. Obviously I have shopped substantially in both Milan and Paris. In Milan, none of the shop assistants gave any advice on where to claim cash VAT, hence, I didn't do it there. I know that I need to do some documentations in my departure (Paris) airport but a lot of reading seems to point that the refund will take between 4 - 6 weeks.
In reality, its true and false. The VAT refund will take 4-6 weeks if you are not willing to pay for an intermediary to act on your behalf. If you pay someone to process for you, you can get the cash back, immediately.
Here's how. When I was in the LV in Paris, the shop assistant told me that I can claim for cash VAT nearby, which I decided to try. This cash refund VAT is located at 79 Ave des Champs Elysées, 75008 Paris, which is about 200m walk from the famous 7-storey LV. Its a very small money-changer so you have to open your eyes and look out for it. Basically, you will give him your receipts (along with the VAT refund forms, etc), he will process and give you a few documents to sign, authorizing him to claim the VAT on your behalf, etc. Once all the documentations are done, he will give you cash back but not without taking a sum off for processing it on your behalf. He took Euro$7 for processing which I think is a lot and I will tell you why later.
Do note that:
1) He will only provide cash refund on purchases in Paris (hence, I can't claim my VAT refund on items I bought in Milan)
2) You will still need to get the document chopped in the airport and mail it back to him. Details provided below.
Despite the chaotic situation whereby airports were closed due to the volcanic euruption, I managed to suceed an air ticket on the first available flight. Yes, the airport is in a mess but the VAT counter is opened! I departed from Paris CDG Airport, terminal 1, and the VAT counter is located outside the check-in point.
Carrying all my shopping, I went over to the VAT counter for them to check and verify my documents. You need your passport, shopping goods (which they didn't check but you still need to have them next to you, in case they decided to check) your VAT receipts and your air ticket. If you don't have your air ticket, a print out of your flight confirmation is acceptable as well. While I was quening to get my VAT refund chop from the custom, my BF is quening to get our boarding pass for the flights. This saves us waiting and quening time because Paris airport is not exactly one of the most efficient airports in the world.
After I got the VAT receipts verified, there is a cash VAT refund counter nearby (about 50m away). This is also outside the check-in gate. Its a money changer counter and yes, they charge a fee as well to give you the cash refund. This cash refund counter charged Euro3 for each refund they are processing (so if you have bought 10 items, and need refunds for all of them, it is Euro30). Since it is a money changer, they can give you your refund back in whatever currency you want, but I requested for Euro because their exchange rate is really bad. Their spread is huge and I calculated that I will lose about 20% in exchange rates. I'm not sure if its because of the situation then, or they usually charge such a wide spread. Nonetheless, I would suggest for you to get your VAT refund in Euro and exchange it for your home airport when you are back.
So, I managed to get cash VAT refund for all my Milan and Paris shopping. The thing is, if you have obtain cash VAT refund from the airport counters, you do not need to mail anything back. You simply need to go to 2 different counters, one to get the VAT verified, second to get the cash refund. However, if you have obtain cash VAT refund from the city center counter, then you need to mail the verified documents back to them, after it have been verified by the VAT refund counter. If you forget to do it, the city center processing counter will simply charge your credit card to get the money back (yes, they took an imprint of it when they are processing the cash refund).
After entering the check-in counter, before I get to my gates, there is a yellow mailbox. That is the place you can drop the letter.
In conclusion:
1) Obtain cash refund in City Center: Not good choice. More expensive and still must mail back the documents.
2) Obtain cash refund in Airport: To me, a good choice. Yes, I have to quene twice (once for the VAT, another for the processing agent) but I get the money, on-the-spot, less processing fee of Euro3 per transaction.
3) Submit VAT refund via mail so that you don't have to pay the processing agent, the processing fee: This really depends on how much you have bought and how patient you are. I read on some websites that it can take between 4-6 weeks for it to be processed. To me, its a long time, and you never know what might go wrong. If they send you a foreign currency cheque, it might cost more (than the processing fee) to get the amount cleared.
Hope this info is useful to those who are heading to Europe!
Oh, btw, CDG Airport has only a tiny Hermes boutique, Longchamp, Ferragamo and Lancel counters after the check-in counter. If you want to buy any of these brands' mainstream products, you can do so taxfree without having to submit any documents or meeting the minimum purchase quota. There are no other brands available but this is strictly for CDG Terminal 1.
Wonder how that is going to go in the overhead bins.