Value added tax (VAT) is a tax that is been paid in different stages. The overall rate of the VAT is being paid by the customer when they purchase a product or service. The amount of VAT is included in the total price of the product.
The goods or services you are purchasing have some VAT tax in them which you have to pay. However, in some situations, there is a chance that you will get a VAT refund on these products but this happens only in certain situations. You can get the amount of VAT refund only if:
- You are visiting the UK and you have a permanent residence outside the EU registered states and you are going back to your home
- You are a resident of an EU members state and you are leaving due to some reasons for more than the time duration of 12 months
- You are a resident of a non-EU state but you are currently studying or working in the UK. When you leave for more than 12 months, you will get the refund.
However, you need to understand that point that you cannot get VAT refund on all of the goods and services. There are some companies or shops that does not provide you with this opportunity. You can check their documents or ask at the shop, if they can provide you the VAT refund. In some situations, the availability of the Vat refund is clearly written on the door or at a prominent place in the shop.
Getting a VAT refund:
There are different ways through which you can get your VAT refund. These are explained below:
- Get a VAT refund form (VAT 407) from any of the retailer. You will get it by providing a proof that you are eligible for the VAT refund. This proof may include your passport or any other legal documents.
- At the customs, show the products you purchased, the VAT 407 form that is completely filled and the receipt whenever you are leaving an EU states. (This point is sometimes not applicable in the UK).
- If you show up a fully filled VAT refund form at the customs, they may approve your request if everything is properly done. After this approval, you can get your VAT refund.
The amount of VAT refund can be provided to you either immediately from the nearest present booth at the airport or wherever you are. Another way of providing VAT refund is that the refund form will be sent to the retailer and the refund will be provided by the company itself. There are some retailers who can charge some fee for providing the form or doing the whole refund process.
You can get a VAT refund by completing the form and submitting it to the right person. Before applying for a refund, make sure that the retailer has this facility on the goods you are purchasing.