Introduction
Visiting the UK can be an exciting experience, and shopping is bound to be a part of it. As a non-UK resident, you may be eligible for a refund of the Value Added Tax (VAT) on your eligible purchases. In this article, we will take a closer look at how the UK visa tax refund process works and what you need to know as a tourist to claim your refund.
What is VAT?
VAT is a tax that is paid on most goods and services in the UK. The rate of VAT is currently 20%, which means that for every ￡1 you spend, 20p goes towards VAT. When you purchase goods in the UK, the price you pay at the till will already include the VAT.
Who is eligible for a VAT refund?
If you are a non-UK resident and have been in the UK for less than 12 months, you may be eligible for a VAT refund on your purchases. However, there are certain conditions that must be met before you can claim the refund. Firstly, the goods you are claiming the refund on must be for your personal or business use, and not for resale. Secondly, the minimum spend on eligible goods must be ￡30 or more, including VAT. Thirdly, you must be able to provide proof of export, i.e. that you are taking the goods out of the country. Finally, you must claim your refund within three months from the date of purchase.
How do you claim a VAT refund?
There are two ways to claim a VAT refund in the UK. The first is through the VAT Retail Export Scheme (RES), which is used by most shops and retailers. When you make a purchase, you should inform the retailer that you would like to claim a VAT refund. The retailer will then provide you with a tax-free shopping form, which you need to fill in with your details and the details of the goods you have purchased. You will need to present this form, along with your passport and proof of export, at the airport or port when you leave the country. You can then either claim your refund in cash or have it credited to your card.
The second way to claim a VAT refund is through the Visitor Refund Scheme (VRS), which is offered by some retailers, including those that do not participate in the RES. With the VRS, you will receive a VAT refund at the point of purchase. You will need to ask the retailer if they offer this scheme before making your purchase.
What can you claim a VAT refund on?
You can claim a VAT refund on most goods that you purchase in the UK, including clothing, electronics, and souvenirs. However, there are some items that are not eligible for a refund, such as certain food items, drinks, and services.
Conclusion
If you are a non-UK resident and are planning to do some shopping during your visit to the UK, it is worth knowing that you may be eligible for a VAT refund on your eligible purchases. Make sure to check the eligibility criteria and keep all your receipts and tax-free shopping forms safe, so that you can claim your refund when you leave the country.
