How does the VAT work?
#1
Original Poster
Joined: May 2017
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How does the VAT work?
I'll be in London and due for some shopping! How does the VAT work? Does the store give you paperwork you present at the airport? Where do the locals shop for clothes, shoes, cosmetics? I'll be flying to Tokyo from London then back to US. I could ship my stuff back to US depending on how much and bulky or bring them all with me if that makes any difference on the VAT.
#3



Joined: Oct 2005
Posts: 74,970
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If the merchant ships your purchases they will usually take the VAT off the top which will pay for most of the shipping. Though some (like Fortnum & Mason) have recently discontinued that process.
If you mail the items back yourself you cannot claim the VAT really, since you need to have the goods available at the airport in case the Customs agent wants to see them. (They don't always ask but often do)
You can shop <i>anywhere</i>, but many stores will have a minimum purchase requirement before they will offer VAT refunds. Also, you will have to show your passport at the store for them to process the paperwork.
I don't usually bother unless it is a substantial purchase -- you don't get the full VAT back - only about 12%-13% after the fees (you do get the full amount if the merchant doest the shipping)
If you mail the items back yourself you cannot claim the VAT really, since you need to have the goods available at the airport in case the Customs agent wants to see them. (They don't always ask but often do)
You can shop <i>anywhere</i>, but many stores will have a minimum purchase requirement before they will offer VAT refunds. Also, you will have to show your passport at the store for them to process the paperwork.
I don't usually bother unless it is a substantial purchase -- you don't get the full VAT back - only about 12%-13% after the fees (you do get the full amount if the merchant doest the shipping)
#4
Joined: Feb 2003
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<< Where do the locals shop for clothes, shoes, cosmetics? >>
What does this mean? Are you asking for store recommendations or chains? You can google the chains - despite the Scots' best efforts, the UK remains a capitalist economy with robust commerce. If you're asking about major department stores, there are many and also easily searchable.
What does this mean? Are you asking for store recommendations or chains? You can google the chains - despite the Scots' best efforts, the UK remains a capitalist economy with robust commerce. If you're asking about major department stores, there are many and also easily searchable.
#5

Joined: Jan 2003
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Locals shop in all the stores except maybe souvenir shops. No store could stay in business if no locals shopped there.
I can't even comprehend why you need to buy cosmetics in London, nor the other stuff, frankly. London isn't cheap and there is nothing special about their cosmetics (or clothes, that's for sure). It would have made more sense to say you were going to buy them in Japan, but I don't understand why you feel a need to buy cosmetics on a trip at all.
I can't even comprehend why you need to buy cosmetics in London, nor the other stuff, frankly. London isn't cheap and there is nothing special about their cosmetics (or clothes, that's for sure). It would have made more sense to say you were going to buy them in Japan, but I don't understand why you feel a need to buy cosmetics on a trip at all.
#6



Joined: Oct 2005
Posts: 74,970
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>>I can't even comprehend why you need to buy cosmetics in London, <<
Lots of reasons -- many local brands are not available in the States, or cost a lot more if they are.
>> . . . nor the other stuff, frankly.<<
Shopping in London can be lovely and there actually ARE things better bought there than back home. And unless one lives in Manhattan -- there is much more to choose from in London than most places in the States.
Lots of reasons -- many local brands are not available in the States, or cost a lot more if they are.
>> . . . nor the other stuff, frankly.<<
Shopping in London can be lovely and there actually ARE things better bought there than back home. And unless one lives in Manhattan -- there is much more to choose from in London than most places in the States.
#7
Joined: Jan 2007
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I can't comprehend why a person who does not like to shop for anything in London would reply, in two whole paragraphs, to a question about shopping in London. But I'm simple like that.
I was thinking what janisj said--I never bother with the VAT, but I also have never bought more than a few hundred dollars' worth of stuff in one country. OP, you might consider skipping the hassle, too, depending on how much you spend.
I was thinking what janisj said--I never bother with the VAT, but I also have never bought more than a few hundred dollars' worth of stuff in one country. OP, you might consider skipping the hassle, too, depending on how much you spend.
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#8
Joined: Feb 2003
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<<I can't even comprehend why you need to buy cosmetics in London, nor the other stuff, frankly. London isn't cheap and there is nothing special about their cosmetics (or clothes, that's for sure).>>
This must be a female-centric comment because if it's meant to apply to men, it's just daft. Proof in two words: Jermyn Street. Proof in two more words, Saville Row. The names of these areas define specific men's styles. As for cosmetics, Penhaligon's alone could put the lie to Christina, but that's not my area.
This must be a female-centric comment because if it's meant to apply to men, it's just daft. Proof in two words: Jermyn Street. Proof in two more words, Saville Row. The names of these areas define specific men's styles. As for cosmetics, Penhaligon's alone could put the lie to Christina, but that's not my area.
#10

Joined: Jan 2010
Posts: 8,560
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Yes the store will give you paperwork, make sure it is completely filled in before you get to the airport and have your items either in your carry on or in the top of your suitcase. At London Heathrow the tax back place is at the entrance before you go in, or at least it was 4 years ago. (the last time I claimed the VAT back) That was handy as I just had the items in my suitcase in case they wanted to see them, so you do this before you check your bag.
I always claim the VAT because I like to shop in Europe and it's worth it.
London has loads of great shopping.
I always claim the VAT because I like to shop in Europe and it's worth it.
London has loads of great shopping.
#13
Joined: Apr 2003
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"there is nothing special about their cosmetics (or clothes, that's for sure"
Total exports of clothes in 2016:
From France: 203,000 tons
From Italy: 271,000 tons
From the UK: 433,000 tons
From the US: 252,000 tons
To some, of course, this will merely prove how awful real people's tastes are.
But the likelihood is that real people share their tastes with the poster.
Total exports of clothes in 2016:
From France: 203,000 tons
From Italy: 271,000 tons
From the UK: 433,000 tons
From the US: 252,000 tons
To some, of course, this will merely prove how awful real people's tastes are.
But the likelihood is that real people share their tastes with the poster.





