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Claiming a VAT Refund When Leaving the UK

By: Louise Smith, barrister - Updated: 4 Feb 2018 | comments*Discuss
Claiming A Vat Refund When Leaving The Uk

VAT – or Value Added Tax – is a tax payable on many goods and services in the UK. The rate at which VAT is charged depends on the category of goods or services. VAT is usually included in the advertised price of an item or service.

The Rates of VAT Charged in the UK

There are three different VAT rates in the UK:

The Standard Rate – most goods and services fall into this category. The standard rate is currently 20%.
The Reduced Rate – some goods and services carry a lower rate of VAT, these include domestic fuel and the installation of energy-saving measures such as insulation. The reduced VAT rate is 5%.
The Zero Rate – children’s clothes and many types of foods are amongst the products on which no VAT is charged.

Who May be Entitled to a Refund on UK VAT?

In general, foreign visitors will only be entitled to claim a VAT refund when they leave the UK if they live outside the European Union (EU) and if they are travelling to a country outside the EU with the goods. Residents of EU countries may also be entitled to a VAT refund if they are travelling from the UK to a country outside the EU and will remain outside of the EU for at least 12 months.

Goods and Services Purchased in the UK by Businesses

Foreign nationals who have bought items in the UK as a business may also be entitled to claim back VAT. In order to be eligible to claim back VAT a business must be registered outside the EU. VAT can only be claimed back on certain goods and services, and other eligibility criteria also apply.

Types of Goods on Which VAT May Not be Refunded

If an individual is entitled to claim back VAT they can generally claim it on most goods purchased in the UK. However, there are some exceptions. These include VAT charged on:
  • Hotel bills;
  • Goods which have been partly used or consumed whilst in the EU;
  • Goods which are being exported from the UK as freight;
  • Cars, whether new or second-hand. Different rules apply to the import and export of motor vehicles for personal use and a vehicle may be bought without paying VAT at all if it is to be taken out of the EU.

How to Claim a Refund on VAT When Leaving the UK

Claiming a refund on VAT is a multi-step process. It should be noted that retailers may not refund all of the VAT – some may be retained as an administration charge.

Firstly, any goods on which VAT is to be reclaimed must have been bought from a shop or retailer which takes part in the VAT Retail Export Scheme. A form must be filled in when the goods are purchased – this will either be Form VAT 407 or the shop’s own equivalent of this form. Alternatively the shop may provide a special VAT sales invoice. The purchaser will have to provide the shop with evidence that they are entitled to a VAT refund.

Secondly, the visitor will have to agree with the shop the method by which the VAT will be refunded. There are three options – not all of which may be available in every instance.

  • Some shops will refund the visitor directly upon receipt of the VAT form once it has been approved by a customs official.
  • Some shops will provide refunds via a dedicated refunds company.
  • Some retailers may have a kiosk at the airport where refunds can be obtained as soon as the VAT refund form has been approved.

Finally, when the visitor leaves the UK they must show the completed VAT refund form, as well as the goods purchased, to the relevant customs official at their UK departure port. If leaving the EU via another EU country the goods and VAT form may have to be presented to a customs official in that country rather than the UK. The form must then be posted back to the shop or to the refund company, or taken to the refund booth at the airport according to the refund method being used.

If there is no customs official at the departure port there should be a telephone on which customs officials can be contacted or a special box where the refund form can be posted for consideration. In the latter case, a customs official should send the refund form to the shop or refunds company once it has been approved.

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We left Edinburgh airport on the 16th Jan at 4am in the morning. I was told to complete my vat forms and drop it in the mailbox provided and was told it would take 2 weeks before i would receive my refund, but have not heard anything. Kindly advise
Suki - 4-Feb-18 @ 7:53 PM
@Saltom - your'd have to contact HMRC. They're usually pretty quick on sending any amounts owing to you, unless they have a query to follow up.
JenN - 14-Dec-17 @ 10:12 AM
I came back from London 6 weeks ago where I submitted my tax form via the mailbox there. I have not received any VAT back as yet, how do I follow it up please?
Saltom - 13-Dec-17 @ 11:05 AM
I have not collected my VAT refund . Can i fill it online and what is the process . Please guide, Regards, Sanjay
SANJAY - 14-Nov-17 @ 4:17 PM
3.I did not collect vat refund slips during my shopping as I was not aware of the same. Will the bills/invoice that I have during my shopping suffice for vat refund claim?
Arr - 9-Nov-17 @ 2:29 AM
We had submitted our VAT refund forms overa month ago at the airport in Edinburgh. We have had no reply. How do we follow it up??
Tuna - 8-Nov-17 @ 11:55 AM
I bought my goods from UK I'm from China but I haven't finished my European tour. I'm planning to visit Budapest then go back to China. Howcan I claim my Uk shopping VAT back.
Aki - 24-Oct-17 @ 1:43 AM
I’ve submitted the VAT claim in Heathrow airport and they said I’ll get it in 2 to 3 weeks and I’m yet to get it. Not sure how to follow up either.
Vin Cee - 11-Oct-17 @ 8:25 AM
Hello, 1.Can I claim vat refund online ? 2.I forgot to claim vat refund during my trip that was last month.Can I claim that when I travel next to UK? If yes then then how long is the validity for same. 3.I did not collect vat refund slips during my shopping as I was not aware of the same. Will the bills/invoice that I have during my shopping suffice for vat refund claim? 4.Will the shops provide me the vat refund form for purchase that I made during my last visit in UK ? I have all the bills /invoice saved with me.
Shelly - 30-Sep-17 @ 4:43 PM
I came back from London more than 2 months, but I have yet to receive my VAT refund which I submitted in Heathrow airport when leaving London, how can I follow up this? Thanks
WCF - 7-Sep-17 @ 2:10 PM
Hi!! Am in a vacation with family in UK, holding Indian Passport and have visited various locations/cities, e.g. London, Birmingham, Edinburgh, Cardiff etc. Have made retail purchases from various outlets for which I have the invoices. Total spends amount to around 500 GBP. Please advise how can I get refund on vat, or if I am even entitled for the same.
Raj - 17-Aug-17 @ 2:48 PM
if Iv purchased quite a few items when on holiday and want to cargo some items before I fly out how do I claim the vat ?
Akz - 16-Aug-17 @ 2:58 PM
Hi, I am a tourist from HK and I would like to know if I can get tax refund for goods I brought in the UK under the age of 18 . Thanks.
Blue - 13-Aug-17 @ 6:12 PM
Hello, I am a doctor working in the UK on a tier5 visa. My work permit is expiring. Can i reclaim my tax refund for if I purchase stuff in my last three months in tbe UK?
DrH - 10-Aug-17 @ 5:58 PM
hi,i have dual citizenship for the uk and nigeria. i am going to nigeria for 2 weeks and want to claim vat refund for the things i bought for my family.is this possible?
E,S - 10-Aug-17 @ 9:56 AM
I have stayed in a hotel in southall area and I have got the hotel bill and VAT details from the hotel. I was informed the VAT is to be refunded when I exit from UK. I am exiting UK to Paris thru ferry and subsequently after touring in Europe, will leave for my country from Rone, Italy. I request for advice: 1. Is the VAT refund on Room Charges for stay in Hotel is admissible? If so 2. Can I claim after immigration at the ferry terminal at UL to go to Paris? OR 3 is it required to get the refund only upon leaving EU country? In that case can I claim it at the airport at Rome after immigration formalities? Pl advice. Best Regards
BM - 31-Jul-17 @ 10:35 PM
Hi, We were traveling from U.K. back home to Singapore .. London- Frankfurt and then Frankfurt- Singapore.. we were told that since Frankfurt was the last point of exit we shld claim vat refund at Frankfurt.. however the airline checked in our baggage all the way to Singapore so when we reached Frankfurt they refused the vat refund since our luggage was already checked in to Singapore. They said we could claim the refund in Singapore.. can you please advise if that is possible and the procedure to do so. Thanks
mug - 28-Jul-17 @ 5:19 PM
Hello. I m here in UK on student visa for one year and will be leaving UK permanently in September 2017. I m non EU national. AM I entitled to VAT refund?
Iffi - 25-Jul-17 @ 3:49 PM
Hi we are planning a wedding party in an EU country. My fiance is UK resident. Can we claim VAT back on purchased services, wedding reception and EU based agency fees? Thank you
Kristina - 15-May-17 @ 11:55 AM
I am a UK resident. I have bought a wedding present for a relative who is resident in Norway. When I bought it the shop filled in a VAT reclaim form. I am travelling to Norway crossing from Dover to Calais by ferry very soon. There is no VAT reclaim office at Dover. How can I reclaim the VAT.
Ann Pittman - 13-May-17 @ 11:30 AM
I am an Egyptian citizen and I visited the UK for 9 days in March 2017. I left the country on 30 march 2017 via Heathrow Airport London and i had a total of about £250 of VAT refund I was supposed to get. On the airport I gavethe signed VAT forms to the VAT refund Office in the Airport to be refunded to my account and They said it will be paid within max. 30 days. This is now 42 days later and I received no refund. When will I can get my refund? And what can I do to speed up the process.
zawra - 11-May-17 @ 9:59 AM
andrew - 2-May-17 @ 9:41 AM
Dear Recently I visited UK, and had been staying in one of the hotels in the Canary Wharf area. I do have the VAT invoice from the hotel. I did unfortunately forgot to present this invoice at the Heathrow Airport upon my departure. Now I am outside the UK, is there any way the that I can claim this VAT. Best Regards
nemat - 23-Apr-17 @ 7:13 AM
Hi Team, Do we have VAT claim office in Leeds Bradford airport. Please update i need to apply for claim. Thanks, Vijay
Vijay - 4-Apr-17 @ 12:41 PM
I have the very same situation as Maretha - 23 Dec 16 - having posted my forms into the Customs postbox at London City Airport in early December, Premier Tax Free claim it has not been received so therefore no refund and I am told by them that there is nothing I can do about it.
Mrs Angry - 16-Mar-17 @ 12:19 PM
I have purchased two iPhone7 while on a business trip to UK. I am leaving in two weeks from London to Zurich (transit only) and then to Mumbai, India. How can I claim VAT refund for those two iPhones?
Sumit - 11-Mar-17 @ 4:28 PM
Greetings. I am purchasing an Apple laptop online, from Ireland. The VAT is considerable. How do I reclaim the VAT before leaving the UK from Heathrow for Asia, where I live? Thank you.
Jen - 10-Mar-17 @ 2:29 PM
I am UK citizen living in USA, my husband is US citizen. We are having our wedding party in London in September, can we claim VAT back for it?
Jane - 6-Feb-17 @ 3:57 PM
I am a tier 2 ict long-term visa holder and leaving UK after staying 5 years in london. Can I claim VAT while leaving? What is the process?
Sucha - 31-Jan-17 @ 9:44 AM
I plan to leave UK from Leeds airport and transit in London for a flight direct to Kuala Lumpur. I am not able to access any details on how or where should I drop off my Vat Claim forms at Leeds Bradford airport. In the past years, I did not encounter any issues when leaving UK from Manchester or Heathrow as there were clear guide lines provided. I am totally baffled with regards to Leeds Bradford. Appreciate your kind response
Confused - 24-Jan-17 @ 11:55 AM
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