The problem with the current process is that it is costly and complicated, and the VAT refund operators that facilitate the transaction swallow up a sizable portion of any tax rebate. Even with a middleman, consumers must keep their tax invoices, complete a long form, and then queue in an airport customs office to present their paperwork for verification before flying home. The tourist then posts the paperwork and waits several weeks for a refund that will be reduced by as much as 40 percent due to service charges assessed by the VAT refund operator.
Source: Forbes
