Starting this week, Israelis returning from overseas will be able to obtain VAT refunds on purchases in Tel Aviv, and not only at the airport. The service, provided by Total Money, enables Israelis to obtain VAT refunds in shekels in cash at stores that have an agreement with Global Refund and which hold the company's VAT exemption in 32 countries worldwide. Total Money collects a fee directly from Global Refund.
Until now, Israelis applying for a refund from the company had to wait in line at the airport upon their return from overseas, or ask for the refund to be mailed, and wait for the check to be delivered. Since the checks were in foreign currency, depositing them involving paying exchange rate differences and bank fees, which sometimes amounted to 40% of the original refund.
Total Money said the new service would pay the refund in shekels, which would increase the payment. The company is also offering refunds at post offices through the "cash in time" service for a fee, and to send the payment by mail.
Obtaining a refund involves a number of steps: buying at a participating store overseas and filling out a VAT refund form; providing customs with receipts and a passport and waiting for the VAT refund form to be stamped upon leaving the country; and upon return to Israel, sending the form and receipts to Total Money either in person or by mail, and receiving the money immediately. It is still complicated, but a little less so.
Published by Globes [online], Israel business news - www.globes.co.il - on May 26, 2005