VAT (value added tax) is the tax payable on all goods and services in the UK. The rate is currently 20% (as of 2018).
With store-bought products, tax is included in the total price, so you don’t need to add it to the price shown at the register. If a bottle of water is priced at 75p, then 75p is what you will pay.
For larger and more expensive purchases, you can see the breakdown of the price of goods / services, VAT and the total to be paid.
Are you eligible for a VAT refund?
- You are eligible for a VAT refund if you live outside the EU
- You are eligible for a VAT refund if you live outside the EU but study in the UK. You must be able to show that you will be leaving the EU for more than 12 months after you finish
- You are eligible for a VAT refund if you are an EU citizen but are going to a destination outside the EU and do not return to the EU within 12 months
How can you claim a VAT refund?
You can claim a VAT refund on anything purchased from participating retailers (which has VAT included in the price).
You cannot claim VAT for the following:
- Services (for example, hotel stays)
- Items purchased online or by mail
- Disassembled gemstones
- Consumables that have been opened
- Items that need an export license
- Goods worth more than £ 600 are exported for commercial purposes
How to claim a VAT refund at the airport
- When making a purchase, ask the retailer for a VAT Refund Form.
- Complete and sign the VAT Refund Form.
- To request a VAT refund on goods to be packed in checked baggage, go to Customs before Security at the airport where your VAT Refund Form will be reviewed and stamped.
- To collect your refund, go to a VAT refund service.
- Depending on the VAT form given to you, the refund will be issued to your credit card, sent as a check or in cash.
- If you are ordering jewelry or electronics worth more than £ 250 and you want the items to be kept in your carry-on baggage, you will need to visit Customs after Security.
