All about tax and how to get a VAT refund
Or, how to get money for nothing. A guide to save you even more money on your trip to Europe.
In the UK and all of Europe, all prices you see in the stores will be inclusive of all taxes and charges, so the price you see is the price you pay.
However, tax is charged on this goods, and if you’re NOT a national of the European Union, you’re entitled to a refund of some of that tax. VAT in the UK is currently 15%, though it’s due to rise to 17.5% or 20% in 2010. Theoretically you can the bulk of that 15 percent tax back.
How?
- Keep an eye out for the Global Refund signs (like the one pictured here)
- Stop: ask yourself, can I get this cheaper somewhere that doesn’t offer a tax refund? There’s no point paying double just to save 15%.
- Make sure you spend the minimum amount required. The retailer will have a sign up saying how much this is.
- At the point of sale, tell the retailer you want a tax refund; they’ll give you a form to fill in.
- At the airport when you leave, you need to go to Customs (there is a desk before check in) and show them your passport, stamped receipt, form, and purchases. They will then refund some of the cash (less an administration fee) either directly or Global Refund will mail a check to you.
In general this is so much hassle it’s only worth doing on big ticket items as the retailer’s minimum required spend can be quite high and the forms etc are a pain in the butt. But it’s certainly one to remember if you do spend say, over £100 in one shop!
This article is reviewed at least once a year to make sure it's still up to date. Last review: Autumn/Fall 2009.
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