Tax Free Shopping

How tax free shopping works

Tax free shopping is an initiative which enables qualifying travellers leaving the European Union (EU) to obtain a VAT refund on goods which they are taking out of the country.  It cannot be used for services or on goods partly used in the EU (e.g. perfume and chocolates), goods over £600 in value for business, or unmounted gemstones and bullion.  You may qualify if you:

• Visit the UK but live outside the EU and are going back home.
• Are an EU resident leaving the EU for 12 months or more.
• Are a non-EU resident but work or study in the UK and are leaving the EU for 12 months or more.

Not all retailers offer tax free shopping and you can only receive VAT refunds for goods bought within the last 3 months.

Our retailers work with different tax free shopping agents.  However, irrespective of the agent they work with, the tax free shopping process usually works as follows:

1. Obtain a VAT 407 form from the retailer – they might ask for proof that you are eligible, e.g  by asking to see your passport.
2. Show the goods, the completed form and your receipts to customs at the point when you leave the EU (this might not be in the UK).
3. Customs will approve your form if everything is in order. You are then able to submit the approved form for payment.

If you’re changing planes in another EU country and are checking in your goods with your luggage, you must do step 2 in the UK when you check in.

Receiving payment:

The retailer will tell you how you’ll receive payment. Depending on the tax free shopping agent and airport of departure, you can either be paid immediately at a refund booth, or send the approved form to the retailer or their refund company. Some retailers charge a fee for handling your form. This money will be deducted from your refund.