Taxes and Refunds

Value-added tax (VAT) is a 15% sales tax levied on most goods and services except food, books and children’s clothing. Restaurants must, by law, include VAT in their menu prices.

It is possible for visitors to claim a refund of VAT paid on goods and/or business expenses, resulting in a considerable saving.

Leisure Travellers

If you are travelling for leisure purposes or visiting friends and family, you maybe eligible for a VAT refund. You need to have spent fewer than 365 days out of the two years prior to making the purchase living in the UK, and you must be leaving the EU within three months of making the purchase.

The VAT refund scheme is called the Retail Export Scheme or Tax-Free Shopping. Not all shops participate in the scheme, and different shops will have different minimum purchase conditions (normally around £75 in any one shop).

On request, participating shops will give you a special form (VAT 407). This must be presented with the goods and receipts to customs when you depart (VAT-free goods can't be posted or shipped home). After customs has certified the form, it should be returned to the shop for a refund (minus an administration or handling fee), which takes about eight to 10 weeks to come through.

To find out more about tax reclaim opportunities for leisure travellers contact Global Refund or Premier Tax Free for Leisure Travel.

Business Travellers

If you are travelling for business purposes, please note that tax reclaim opportunities exist for overseas companies and individual travellers.

Visit London has partnered with tax specialists Tax Back International (TBI) to provide a personalised service to overseas companies wishing to reclaim the tax (VAT) on UK business expenses incurred whilst travelling to London on business. Visit the TBI website who will arrange a smooth and stress-free refund on your behalf.

 

Questions About Taxes and Refunds

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