Tax free purchasing in the UK, but exporting through third country?

Kotek Besar

Hi guys,

Not perhaps a question for here I know, but if anyone knows the answer I'd be eternally grateful.

Here's the thing:

A tourist from Hong Kong arrives in the UK as a visitor and buys an iPhone 4 from the Apple store in London. It is £510 inc VAT. He is given a Global Refund receipt, as the Apple retail stores participate in this scheme.

A few days later, the tourist travels to Ireland. After a further few days, the tourist departs Ireland (and the EU) on a flight to Switzerland. He stays a few days then returns to Hong Kong.

At which point is VAT reclaimed?

nompere

This is a UK VAT query and the answers are on the UK Revenue site:

http://www.hmrc.gov.uk/vat/sectors/consumers/overseas-visitors.htm

How to get your VAT refund
When you purchase the goods
First, you need to choose a shop that operates the VAT Retail Export Scheme. It's a voluntary scheme and not all shops operate it, so you need to check before you buy anything.

To obtain your VAT refund, you need one of the following documents. The shop will give you this:

•a VAT 407 form
•a shop or refund company's own version of form VAT 407
•a VAT Retail Export Scheme sales invoice
You need to fill in the form when you make your purchases, in front of the retailer. The retailer will ask to see evidence that you are eligible to use the scheme, such as your passport.

You also need to agree with the retailer how your refund will be paid. Some retailers will pay you the refund directly, others will operate through a refund company, and some will have an arrangement with a refund booth at the point where you leave the UK.

You may not get all the VAT back. The retailer and/or the refund company may make a charge to cover the cost of handling your form. If they do, this will be deducted from your refund before you receive it.

When you leave the country
If you're travelling outside the EU, you must show your goods and your refund form to UK customs staff at the airport you're leaving from. Make sure you arrive at the airport early so that you have plenty of time to deal with the customs staff before your departure.

If you're travelling to another country within the EU before you finally leave the EU, then you must show your goods and refund form to customs officials in that country when you leave it.

Which all suggests that you've left it too late.

Kotek Besar

Thanks but..

nompere wrote: »

Which all suggests that you've left it too late.

How do you mean?

nompere

In your original post you said that the traveller had gone back to Hong Kong.

In the bolded paragraph from UK Revenue's web-site it says that the traveller must go through the formalities as they leave the EU.

That's why I said it was too late.

Kotek Besar

I didn't, but sorry if you read it that way. Perhaps I wasn't clear. The scenario is yet to occur.

Thanks for the info all the same.