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  • 1 Post By ArrynField
  • 1 Post By vmlinuz

VAT Retail Export Scheme

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  1. #1

    Join Date
    Nov 2019
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    585

    VAT Retail Export Scheme

    VAT refunds for overseas visitors in British shops will be removed. Overseas visitors will still be able to buy items VAT-free in store and have them sent direct to their overseas addresses, while the costly system of claiming VAT refunds on items they take home in their luggage will be ended.

    https://www.gov.uk/government/news/d...m-january-2021

    shri likes this.

  2. #2

    Join Date
    Feb 2019
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    711

    This actually sounds sensible to me

    The only people really benefitting from this were corrupt exchange companies like Traxelex (RIP) who charged huge fees and were known to refuse to give you your refund unless you swapped it to another currency at their egregious exchange rates

    As far as 'plugging tax loopholes' and 'expanding the base' go, I'll back this one.


  3. #3

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    Jan 2010
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    VAT-free in store and have them sent direct to their overseas addresses, while the costly system of claiming VAT refunds on items they take home in their luggage will be ended.
    Will be replaced by the costly system of shipping your things around the world. I think it's a good way to get rid of VAT-free shopping, but it's definitely not a replacement. Especially since a lot of countries have VAT and duties on shipped items. Nobody is gonna ship a new Rolex back to China and pay the duties on that.

  4. #4

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    SO... one can buy for example an HDTV on sale at a brick and mortar shop and if the shop is able to ship it to HK for a reasonable cost - the purchase is VAT exempt?

    As part of these changes, VAT refunds for overseas visitors in British shops will be removed. Overseas visitors will still be able to buy items VAT-free in store and have them sent direct to their overseas addresses, while the costly system of claiming VAT refunds on items they take home in their luggage will be ended.

  5. #5

    Join Date
    May 2005
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    Quote Originally Posted by shri:
    SO... one can buy for example an HDTV on sale at a brick and mortar shop and if the shop is able to ship it to HK for a reasonable cost - the purchase is VAT exempt?
    That's the way it always has been - except that many stores are not equipped to actually process orders like that. Either they won't be able to arrange said international shipping, or they will just charge the VAT anyway.

    It is not uncommon to find that stuff on Amazon UK (who do handle this) can be cheaper shipped to HK than to the UK, even with 'free' shipping, because the shipping to HK is less than the VAT would have been.

    I assume this change is because the Uk's duty free border is about to get much closer. Otherwise, you could probably go to Amsterdam for the weekend, buy a laptop at the airport on the way, and save more than the flights and hotel would cost - a lot easier than having to travel ex-EU... .
    shri likes this.

  6. #6

    Join Date
    Jan 2010
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    Quote Originally Posted by vmlinuz:
    I assume this change is because the Uk's duty free border is about to get much closer. Otherwise, you could probably go to Amsterdam for the weekend, buy a laptop at the airport on the way, and save more than the flights and hotel would cost - a lot easier than having to travel ex-EU... .
    The duty free limit is £390 at the moment, so you'd save about £80 on the laptop. Would have to stay at a really cheap hotel to come out ahead.