Why 20% VAT Is Only 16.7% of What You Paid
To calculate a VAT refund from a gross price, multiply by rate ÷ (1 + rate), not by the rate. At 20% that is 16.7%. The formula, and the rates it applies to.
€16.67, not €20 · The Arithmetic
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What it actually cost, once it crossed the border
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To calculate a VAT refund from a gross price, multiply by rate ÷ (1 + rate), not by the rate. At 20% that is 16.7%. The formula, and the rates it applies to.
€16.67, not €20 · The Arithmetic