Wednesday, October 9, 2013

#Project21 -- VAT/Tax Free Shopping

If you shop in the UK, the VAT is 20%.
FYI: For eg: an item costs 120 pounds, the VAT is not 120 x 20% = 24 pounds.
For eg: an item costs 120 pounds because...20% VAT + RRP of the item = 120 pounds.
So, if you go to a shop to purchase things, sometimes they will only do Tax Free Shopping (TFS) for you if you spend 50 pounds or more.
I went to Bicester Village to shop, they do the TFS for you at the cashier. But for Primark, you have to pay for your purchases first, then head to the Tax Free Shopping counter where they will calculate for you the VAT. Every store that you go will deduct some processing fee from you. For Lacoste, the skirt I bought was 33 pounds. VAT refund entitled was 5 pounds. After they deducted the processing fee, I was left with 1.50 pound. For Prada, VAT refund entitled was 28 pounds for a 160 pounds item. But after processing fee deduction, I was left with 15 pounds. Ohhh man! I felt sooooo cheated! The stores charge high processing fee, but they don't complete the form for you. That's the irritating part.
When I got to LHR T1, you have to take out the VAT form from the envelope. That's not all. You have to fill in your address, date of arrival, date of departure, name, email address, credit card number if you want to claim through card. That's the part where they don't fill up for you.
So I highly recommend that since you know this precious info, do it at your hostel or hotel to save time.
The customs officer will stamp and take the paper back. They will suggest to you to take a photo of the receipt in case anything happens. My VAT refund came back 10 days later.
Happy Shopping! (:

No comments:

Post a Comment