Question: What is the procedure for claiming VAT refund at the London Heathrow airport for goods purchased from London shops and whether goods are to be shown at the time of claiming refund? Also, is there any minimum purchase amount for becoming eligible to get refund?
Thanks.
-Sailesh

Answer: Dear Sailesh,

All shops in UK charge a 15% VAT on goods sold.  The VAT is not applicable to books, food products and children’s clothing.  If you are a tourist living outside the European Union, you can claim a refund on this VAT. To claim a VAT refund, you must purchase goods from a merchant who participates in the VAT refund program. Most shops in UK require a minimum purchase of £75 to be eligible for a VAT refund. Ask the merchant to give you a VAT refund form along with the receipt when you shop at the store. Keep all such VAT refund forms and receipts with you until you leave the UK.

There are several VAT refund counters at London Heathrow airport as soon as you enter the terminal. You will find a VAT refund counter just before the check-in counter area at Heathrow on all terminals. You will need to produce the original receipt, VAT refund form issued by the merchant along with the goods purchased to claim the VAT refund. The receipt should clearly mention the merchant’s VAT registration number and should include a VAT refund form stamped by the merchant. You must ask the merchant to give you a VAT refund form wherever you shop in UK.

When you arrive at the airport, take the VAT refund form, merchant’s receipt and the goods with you to the Customs VAT refund counter. The customs department will check the receipts, the VAT refund form and the goods, and then stamp the form for you. You can take the stamped form and get a VAT refund in cash from any of the currency exchange counters run by Travelex, Global Refund, or Premier. You can ask for a refund in your home currency.

Remember that there are long queues at both the Customs counter and at the VAT refund counter at the Currency Exchange at London Heathrow. The whole process takes at least an hour, so arrive early at the airport, if you want to claim a VAT refund. The VAT refund has to be claimed before you check-in your baggage, as the Customs department may ask you to show the goods on which you are claiming the VAT refund. As check-in closes 1 hour before the flight departure, you will have to arrive at least 3 hours before your flight time at the airport.

I hope you find this information useful. Do let us know your experiences with the VAT refund at London Heathrow. Your feedback is very useful for other travelers in a similar situation. If you need any other information about VAT refunds, or any other airline, please write to us.

Have safe and happy flight!

Best Regards,
FlightGuru