Sunday, October 27, 2013

VAT refund in London

A post on VAT refund!! In order to claim VAT, you must leave United Kingdom for a destination outside the European Union with the goods.
 
EU countries include United Kingdom but exclude Switzerland, Norway, Iceland, Bulgaria, Romania and Turkey.
 
From my personal experience, the UK officer did not ask to see my purchases. But I had previously claimed VAT in other EU countries where they requested to look at my purchases.
 
It is very orderly at the VAT Refund office and they even have staff to help answer queries.


The VAT refund for my purchase is EUR434 but I only received GBP365.34 (The rate they use was 1.0664 and that is about EUR390). Besides a GBP2 handling fee, there is an additional administrative fee of GBP39 as I have opted for the refund in cash. The refund is paid in the currency of the country where the Refund Point is located. There is a currency conversion fee if you choose a different currency.
 
I prefer my VAT refund in cash
Pro
- You receive cash immediately. I remember I had to wait about 3 months to get my refund when I opt for payment via Credit Card.
- If you opt for your refund via Credit Card, the bank's rate is usually less favourable to us. 
- If you are a frequent traveller, you can keep the euros for your next trip.
- Alternatively you can keep the euros first and bring it to the money changer when the rate is better.
 
Con
- you have to pay for additional administration fees.
 
 
 
Important!
- Find out the location of the VAT office. This helps to save some time.
- Arrive early! I waited about an hour in the queue.
- Make sure all the documents are completed. The shop assistants will help you.
- Bring all your purchases with you and be prepared to show them to the officers.
- You must have your passport and boarding documents with you. The officer asked for my flight details.
 
Please also read my post on shopping at The Mall in Tuscany, Italy.

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