Taxes

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Taxes

Departure taxes are divided into four bands, depending on destination. The Band A tax on a per-person Economy fare is £12, Band B is £60, Band C is £75, and Band D is £85. The fee is subject to government tax increases.

The British sales tax (V.A.T., value-added tax) is 20%. The tax is almost always included in quoted prices in shops, hotels, and restaurants.

Most travelers can get a V.A.T. refund by either the Retail Export or the more cumbersome Direct Export method. Many, but not all, large stores provide these services, but only if you request them; they will handle the paperwork. For the Retail Export method, you must ask the store for Form VAT 407 when making a purchase (you must have identification—passports are best). Some retailers will refund the amount on the spot, but others will use a refund company or the refund booth at the point when you leave the country. For the latter, have the form stamped like any customs form by U.K. customs officials when you leave the country, or, if you're visiting several European Union countries, when you leave the EU. After you're through passport control, take the form to a refund-service counter for an on-the-spot refund (which is usually the quickest and easiest option), or mail it to the address on the form (or the envelope with it) after you arrive home. You receive the total refund stated on the form (the retailer or refund company may deduct a handling fee), but the processing time can be long, especially if you request a credit-card adjustment. This may be preferable to a check, however, as U.S. banks will charge a fee for depositing a check in a foreign currency.

With the Direct Export method, the goods are shipped directly to your home. You must have a Form VAT 407 certified by customs, the police, or a notary public when you get home and then send it back to the store, which will refund your money. For inquiries, contact Her Majesty's Customs & Excise office.

Global Refund is a worldwide service with 240,000 affiliated stores and more than 200 Refund Offices. Its refund form, called a Tax Free Check, is the most common across the European continent. The service issues refunds in the form of cash, check, or credit-card adjustment. Again, the cost of cashing a foreign currency check may exceed the amount of the refund.

V.A.T. Refunds

Global Refund (866/706–6090 in U.S.; 800/32–111–111 in U.K.; 800/32–222–555 in U.K. www.globalrefund.com.)

Her Majesty's Revenue & Customs (0300/200–3700 within U.K.; 292/050–1261 from outside U.K. www.hmrc.gov.uk/vat.)

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