VAT Refund

Is travelling to the United Kingdom, or any other European Community country, in your future plans?

Are you going to spend any money on items to take home?

You need to plan ahead in order to avoid the 17.5% Value Added Tax or to do all the things necessary to prepare or a successful UK VAT Refund.

Shopping in the European Community

Shopping on a trip to multiple countries of the EC is a much easier process than in the past. Now that there is the common currency for most of the EC, you can avoid most of the hassle of currency exchange.

But, do not forget about marketing style -- in some countries, the posted price is the price. In other countries, the posted price is simply the starting point for negotiations.

You should expect all posted prices to include VAT. That's the 17.5% that you want to avoid.

The UK is still a hold-out and maintains its Pound Sterling (GBP) as a separate currency. Sellers in the UK might take Euros, but they prefer GBP.

Planning for your UK VAT Refund

Going to bring back anything to the U.S.? Yes. Then you need to plan -- you will pay 17.5% VAT (Value Added Tax), built into the price of everything you buy in the UK or elsewhere in the EC. If it is something for local consumption, you're stuck.

But, if you are taking it out of the UK and the EC (European Community -- UK, Soctland, Ireland, Germany, France, Spain, Portugal, ....) then you can get your money back!

Be sure to check the procedures before you go. In some cases, you may have to actually have the items in your carry-on posessions in order to file the VAT Refund request at the airport. You may have to do some special things at the seller's store, if you are having the goods shipped directly to you in the US.

When you arrive, do not be in a big hurry to leave the airport. This is your chance to pick up information and forms in the Immigration area and Information area of the airport. There may even be a special office for VAT Refunds that you can visit, although it will usually be in the areas used by departing passengers.

Getting your VAT REFUND back takes planning. Getting to the airport with a stack of receipts is not enough -- you have to be able to prove that the goods are being exported, not only out of the U.K., but also out of the E.C.

Legally Avoiding the 17.5% Value Added Tax

Most countries in the EC will allow you to avoid paying the VAT if the seller ships the goods directly to your address in your home country, as long as that is out of the European Community.

If you trust the seller, and if you are willing to take your chances with failure to ship and with damage in transit -- and the resulting hassles of damage claims -- you may be able to avoid the VAT. Smaller retailers may be more helpful in this regard. Larger retailers may not want to be bothered, or may want to charge you an extra service charge -- above and beyond the shipping charge.

Getting Your VAT Refund

Each country as its own procedures for handling VAT Refunds. Before your trip, check the web page for the country's embassy to see if they have the procedure posted or available in Adobe Reader format.

Most of the time, you will actually have to have the goods in your possession to show the Customs official that you are really taking them out of the country. Plan ahead. At many airports, you have already checked in yoour baggage (and those things you packed inside) before you ever get to the Customs office.

Businesses Get Even More Rebates!

Most of the EC countries allow businesses to apply for VAT Rebates on behalf of the expenditures their employees make for business travel, including hotel charges for business trips and business meals. As usual, keep all the documentation. Businesses will probably find it easiest to use one of the many VAT Refund Companies to guide them and to handle their refund details.