For any international traveler, the United Kingdom can prove to be a fantastic tourist destination, particularly because of its iconic landmarks and world-renowned galleries and museums. From the Tower of London to Buckingham Palace to the Houses of Parliament – the country is embroiled with a rich culture and history – that is also reflected in its vibrant cities and stunning scenery. And while the freezing weather can be a deterrent for some visitors, its delicious cuisine and the national love for football more than make up for it.
Working with the UK Government is HM Revenue and Customs (HMRC), which is responsible for handling the nation’s tax payments and customs. The organization actively controls the movement of goods – in and out of the country – while also preventing the smuggling of illegal items. It also protects the UK’s borders from terrorism and other potential threats. So, it is natural that if you are a tourist and are leaving the country, either via air or water, you will be subjected to a customs check. However, the good news is that if you have purchased any item in the UK and are planning to take it outside of the UK and the EU, then you will be eligible for the tax refund that you have paid on such goods. Keep reading to learn how you can exercise that option.
Everything You Need to Know to Claim Refund
As the United Kingdom comprises Great Britain and Northern Ireland, there are major differentiating rules and regulations when it comes to tax-free shopping for international travelers.
In Great Britain, which includes England, Wales, and Scotland, international travelers can perform tax-free shopping if the goods that they are buying are delivered directly to an address outside of the UK. This is because the VAT Retail Export Scheme is no longer available in Great Britain. Thus, it is essential that tourists first check with the retailers if they offer the above-mentioned cross-border delivery service to be able to enjoy the tax-free benefits.
On the other hand, since the VAT Retail Export Scheme is still functional in Northern Ireland, tourists who are visiting Northern Ireland will be eligible to opt for a tax refund on the goods that they purchased within the country, provided they complete the VAT 407 (NI) form. The VAT 407 (NI) form can only be submitted if the applicant is an overseas visitor, has his or her home and place of stay outside of Northern Ireland and the EU, and decides to take the goods out of Northern Ireland or the EU by the last day of the third month after the month in which the goods were bought. For instance, goods bought on June 1, 2023, must be removed by September 30, 2023.
Additionally, if you are an overseas visitor who is working or studying in Northern Ireland or a resident of Northern Ireland or the EU planning to emigrate, then you can take advantage of the tax refund scheme if you plan to take the goods out of Northern Ireland or the EU by the last day of the third month after the month you bought them and can show you will be staying outside of the EU and Northern Ireland for the next 12 months.
With the basic terms and conditions fully explored, let us go through the steps you need to fulfill to be able to submit the VAT 407 (NI) form.
- The first step involves obtaining a VAT 407 (NI) form from the retailer.
- The retailer will initially ask for proof to ensure that you are eligible for the same, such as furnishing your passport and other relevant travel documents.
- Once you obtain the form, proceed to fill it out. Be sure to only include the goods that you are taking out of Northern Ireland and not the goods that you are planning to leave behind. Also, used goods or goods that you have returned should not be mentioned in the form.
- After that, proceed to show the goods along with the completed form and the relevant receipts or invoices to the customs authorities at the time of your departure from Northern Ireland or the EU.
- Once you have obtained the approval, you need to take the approved form to the VAT refund desk at the airport from where you are departing. Alternatively, you can also send the form to the retailer or a refund provider, along with evidence as to where you are traveling. The retailer or the refund provider will let you know how your tax refund will be paid.
Keep in mind that some retailers may charge a small fee for handling the above-mentioned form, which will be directly deducted from your refund amount. Also, during your departure, if there are no customs officials available to serve you, you can leave the completed form in a customs post box. The customs authorities will first check it and then contact your retailer to ensure that the refund is arranged.
Related Information to Know
Before you decide to opt for a VAT refund, it is imperative to learn about the types of goods or items for which you cannot obtain a refund. These include new or used cars, service charges (such as hotel bills), unmounted gemstones, gold or silver (over 125 grams), goods to be exported as freight, and goods that require an export license (except antiques). In addition to that, goods that are exported for business purposes and items that you have already used (such as perfumes) will not be eligible to claim a tax refund.
Lastly, if you have queries or require further assistance, you can get in touch with the HMRC authorities via phone at 0300 200 3700 (domestic) or +44 2920 501 261 (international). Phone lines are available from Monday to Friday, between 8 a.m. and 6 p.m. (except bank holidays).
