VAT Refund

In the UK, Value Added Tax (VAT) is charged at a rate of 17.5% on pretty much everything you buy.  However, most overseas visitors can reclaim the VAT by taking advantage of the VAT Retail Export Scheme (often called tax-free shopping).

To qualify for the Scheme, you must:

• be an overseas visitor whose place of residence is outside the European Union (EU); and
• intend to leave the UK, with the goods, for a destination outside the EU by the last day of the third month in which the goods were purchased (e.g. if you buy goods on 31 March 2008, you must export those goods by 30 June to be eligible for the Scheme); and
• have the goods, receipts and the VAT Refund Form ready for inspection by Customs upon departure from the EU.

Can I reclaim the VAT on everything I buy?

No. You can only reclaim the VAT on goods sold in shops operating the Retail Export Scheme.

The Retail Export Scheme is a voluntary Scheme and thus, not all shops offer this tax saving opportunity. However, those that do, usually have posters on the front of their shop windows advertising so.

How do I reclaim the VAT?

When you buy goods from a shop participating in the Retail Export Scheme, tell the retailer you want to take advantage of the Scheme.  The retailer will ask you your destination and request to see your passport.  If you qualify for the Scheme, the retailer will give you a VAT Refund Form to complete and sign.  Once you have completed the Form, check that the retailer has signed the ‘retailer’s declaration’.  You must then keep this Form safe, until your departure from the EU.

Important: You must get a VAT Refund Form at the time of purchase, if you want to reclaim the VAT.

What must I do when I leave the UK?

If you are leaving the UK for an immediate destination outside the EU, you must present your goods and the VAT Refund Form to UK Customs at your port or airport of departure.  Items, which you wish to check-in as hold luggage must be taken to Customs before you check-in.

If you are leaving the UK for a destination outside the EU, but on a transit flight via another EU country, then you must produce to UK Customs your VAT Refund Form and the items which you wish to check-in as hold luggage.  Any items held as hand luggage, must be produced to Customs in the last EU country you enter in transit.

If Customs are satisfied that all the conditions of the Scheme have been met, they will certify and return your Refund Form to you.

What do I do if no one is present at Customs?

If there is no-one present at the Customs desk there will be a telephone on the desk, which you can use to call a Customs Officer, or a Customs post box where you can post your VAT Refund Form.  Customs will then collect the Form and if they are satisfied that all the conditions have been met, they will certify it and return it to the retailer to arrange your refund.

What if I forget to get Customs to certify my refund?

Unfortunately, there is no facility to have your VAT Refund Form certified once you have have checked-in your luggage and/or left the EU.  Thus, if you forget to get your VAT Refund Form signed, you will be unable to reclaim the VAT you have paid.

How do I obtain my refund?

Once your VAT Refund Form has been certified by Customs, you can apply for your refund by following the instructions given to you by the retailer when you purchased the goods (usually to post the VAT Refund Form to the retailer or a commercial refund company).

NOTE: Retailers commonly charge an administration fee for making a VAT refund. This fee will be deducted either as a percentage of the purchase price or at a flat rate.

More information

More information is available on the HM Customs and Excise website www.hmce.gov.uk