10 steps: How do I make a purchase so I can claim back VAT (when travelling in the EU)?

Britain after Brexit – benefit from tax-free shopping when holidaying in Europe.

Here's how the process typically works:

·      Check for Tax Refund Service

Before making a purchase, inquire with the shop whether they provide tax refund services. Look for signs or stickers indicating their participation in the VAT refund scheme.

·      Proof of residence

Proof of residence is sometimes required in the shop, and this can be demonstrated through a passport or another national identity document. It serves as evidence that the shopper is not a resident of the EU.

·      In-person purchases

Tax-free shopping generally applies to purchases made in person. This means that the individual making the purchase must physically be present at the point of sale.

·      Combine purchases from the same shop

Whenever possible, try to consolidate your purchases into a single receipt from the same shop. You usually cannot combine purchases from different shops for a VAT refund.

·      Requesting a VAT refund form

When making a qualifying purchase, you should inform the retailer that you want to claim a VAT refund. The retailer will provide you with a VAT refund form with the necessary details to initiate the VAT refund process. Provide accurate information, and ensure the form is completed correctly.

·      Invoice

Upon payment, you will receive an invoice for the goods. The shop will fill in their part of the VAT refund form.

·      Understand refund procedure

Make sure you fully understand the steps required to make your claim and how you will receive the refund. Some shops handle the refund directly, while others may use third-party refund service for processing the claim.

·      Keep documents safe

Safely keep all relevant documents, including the VAT refund form, original invoices, and any other supporting documentation. These will be required during the customs validation process.

·      Keep goods safe

You should not use any items that you have bought prior to leaving the EU that you want to claim a VAT refund on. The goods must be unopened and in their original packaging.

·       Only exported goods count

Any goods consumed whilst in the EU, such as food, drink, hotels, car-hire etc., do not qualify for a VAT refund as they haven't been exported.