VAT Retail Export Scheme
When you visit the United Kingdom (UK) you will pay Value Added Tax (VAT) on most things that you buy. The VAT Retail Export Scheme allows you to claim a VAT refund on most goods that you buy and export from the European Community (EC). The shopkeeper may deduct an administration fee before making any refund.
Do I qualify to use the Scheme?
You can claim VAT refund if you are
- an overseas visitor and you intend to leave the UK for a final destination outside the EC, with the goods, by the last day of the third month following that in which the goods were purchased
- Non-EC residents studying in the UK intend to permanently leave the EC for a minimum period of 12 months, with the goods by the last day of the third month following that in which the goods were purchase
Where can I buy tax free goods?
You can claim VAT refund when buying goods from any shop operating the VAT Retail Export Scheme. The Scheme is voluntary and shops do not have to operate it. If you not sure whether you can claim VAT refund from the goods bought in particular shop, you should ask before you buy the goods.
What do I do when I buy tax free goods?
At the time you buy the goods the retailer will ask you to provide proof that you are eligible to use the Scheme. For example the retailer will ask to see your passport. You will then be asked to complete and sign some simple details on a refund form. The form will be either;
- an official Customs Form VAT 407; or
- a shop or refund company’s own version of the VAT 407 form ; or
- a VAT Retail Export Scheme sales invoice.
You must have one of these VAT Refund forms, till receipts alone are not acceptable.
The form should be completed at the time you buy the goods in the presence of the retailer. You cannot ask another person to complete and sign these details on your behalf. You should also agree with the shop how your refund will be repaid to you.
When must I export the goods?
You must export the goods from the EC by the last day of the third month following that in which the goods were purchased. For example, goods purchased on 3 February would have to be exported by 31 May.
What must I do when I leave the UK?
You must present your goods and the refund form to UK Customs at airport of departure. Items that will be checked in as hold baggage must be produced to Customs before you check in your baggage.
During busy periods, queues are likely and you should allow yourself plenty of time in which to produce the goods and refund form prior to departure. When Customs are satisfied that all the conditions of the Scheme have been met, they will certify and return your refund form to you.
What should I do if there is no Customs presence?
In most cases you will be able to locate a Customs Officer to certify your form. However, some of the smaller UK ports and airports do not have a 24 hour Customs presence. At such places there will be either a telephone to ring the officer or a clearly marked Customs post box to deposit your form. Customs will 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.
