Hi All,
I am an American traveling to England. I was under the impression that the 17.5% VAT charge was refundable if you are NOT a UK citizen. I have heard today from someone that now there is a law in effect in England where EVERYONE pays the vat regardless of your country of origin(unless they are on business).

Is this true?? Am I not entitled to any VAT refund for future trips? I am in a haze as the money pours out of my rapidly thinning wallet! Please someone explain all this.

Yes, you can still get your VAT refunded. This applies to goods you will be taking out of the country, not on anything you use there or any hotels or services (e.g., restaurants).

You need to look for stores that display the tax-free shopping sign and fill out the required forms. You will have to ask for it because more often than not it will not be volunteered. You'll have to get it stamped at the VAT/Customs desk upon departure (after going thru security) and carry the goods with you in your hand-luggage just in case the customs officer wants to see it (happened to me twice).

Please note the amount refunded is 14.9% minus the administrative fee. The 17.5% is the tax charged but the tax represents 14.9% of the total price.

Hi Lot,

In addition, the VAT is refunded only if you purchase about 150GBP in one shop.

"the VAT is refunded only if you purchase about 150GBP in one shop."

Not necessarily true. Each shop sets its own VAT refund threshold. I've got VAT refunds w/ as little as £30 in purchases. Many have a £50 or £100 minimum.

Incidentally, there's been no significant change in the law about this for at least 20 years. Your "someone" is talking through their hat.

And officially, refunds are (and always have been) available only to non-EU residents. Nationality is irrelevant. Americans living here can't (or at any rate shouldn't) get a refund: Britons living in Saudi can.

Hi, this question is somewhat related to this thread. Hope someone would be so kind to answer it.

I am student in the UK from Malaysia. Last year I bought a PDA and got VAT refund for it at Heathrow airport. I'm still studying here though. I just found out that I can only claim VAT refund if I do not return to the UK.

Which means I am in trouble! Because I'v e claimed VAT refund even though I'm not eligible. Does anyone know what penalty/criminal punishment that I might risk? And does anyone know what I can do to avoid trouble? I'll be studying in the UK for a couple more years and I want them to be trouble-free.

Cheers
khim.