Can tourists claim VAT in London?

Since 1 January 2021, visitors are no longer be able to purchase items in store in Great Britain under the VAT Retail Export Scheme. For goods purchased before this date, you can still make a claim under the scheme on departure from the UK or EU.



No, as of 2026, international tourists cannot claim VAT refunds for goods purchased in London (Great Britain). The "VAT Retail Export Scheme," which previously allowed travelers to reclaim the 20% tax at airports like Heathrow, was abolished in 2021 following Brexit. There is one major exception: the scheme still exists in Northern Ireland for non-EU residents. For travelers in London, the only way to avoid VAT is to have the retailer ship the goods directly to your overseas home address; in this "direct export" scenario, the store can deduct the VAT at the point of sale because the goods never technically "enter" the UK economy for personal use. Despite heavy lobbying from luxury retailers like Harrods and Burberry to reinstate "tax-free shopping" to boost 2026 tourism, the UK government has maintained its stance, making London a more expensive shopping destination compared to Paris or Milan where VAT refunds are still active.

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Oh, the joy of scoring incredible deals while exploring the beautiful cities of Great Britain! However, starting from January 1, 2021, a wave of change swept across the nation as the UK government made the regrettable decision to discontinue the VAT refund scheme for tourists. Yes, you heard it right.

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You can try to get your VAT refund through the mail but the process takes much longer and can be unreliable. Most people submit their requests at the airport on their way home. You'll have to present your documents to a customs agent, whose stamp is required as “proof of export.”

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You can either get paid immediately at a refund booth, for example at the airport, or send the approved form to the retailer or their refund company. The retailer will tell you how you'll get paid. If you're travelling to Great Britain the retailer will tell you if you need to send them copies of your travel documents.

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Value-added tax (VAT) The standard VAT rate of 20% applies to most goods and services, apart from domestic fuel and power and certain other reduced-rate supplies, which are subject to VAT at 5%.

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There are some goods and services on which VAT is not charged, including: insurance, finance and credit. education and training. fundraising events by charities.

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In the European Union, it means that you can only claim a tax refund when you're actually leaving the EU zone - you won't be able to claim a refund of the VAT if you're only traveling between two EU countries.

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Claiming VAT when travelling from the EU to the UK: Non-EU residents may be able to claim back VAT for purchases made in the EU from retailers that are part of the VAT refund scheme. Please note the minimum qualifying amount is different by country. VAT refunds can only be paid by bank transfer.

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