UK Tax Refund Policy 2023

The British tax refund policy for 2023 is as follows:

1. Tax refund conditions, that is, who can get a tax refund

First of all, we must understand the essence of tax refund: In the UK, goods Selling price = price of the product itself + 20% value-added tax, and this tax is for taxpayers in the country. As tourists or people who are about to leave the EU, you cannot enjoy it, so this tax will be refunded to you.

So, who can get a tax refund: residents of non-EU countries who come to the UK to travel, visit relatives, or visit (of course, this is mainly for Chinese tourists), or non-EU students or workers who have lived in the UK for a long time. Those who are about to leave the EU for more than 12 months are eligible for tax refund applicants.

1. Those who stay in the UK for more than 6 months are considered long-term residents and cannot be refunded. If your visa is about to expire and you will not come back within 12 months after leaving the EU, you are eligible for a tax refund. This happens most often to international students. International students can get a tax refund when they return to their home country after graduation, but remember that they can only be refunded if they made purchases within 3 months before leaving the UK.

2. There are also long-term tourist visas. Most people now apply for a British tourist visa for one or two years. Some parents come to the UK to stay for half a year. I remember they bought it three months ago. Things cannot be tax refunded. If you want to buy luxury goods, try to buy them within the next three months;

3. Permanent residents and British nationals cannot be tax refunded. Bangli found a little trick here. If you want to buy luxury goods for a friend, you cannot get a tax refund if you buy them directly in the UK. You can buy them directly from the websites of large department stores such as Selfridges, Harrods and send them to China to get a tax refund directly online; or go to Buying at airport duty-free shops is much cheaper than at counters.

2. How much money can be refunded with tax refund

As mentioned before, tax refund refers to VAT refund. The VAT rate in each country is different. The VAT in the UK is 20%. , but it does not mean that you can get 20% of the total price of the product. Why?

3. Tax refund quick calculator

The price you pay = the actual price of the product + The actual price * 20%, so the value-added tax is about 17% of the price you paid. However, this 17% is also deducted from the tax refund company's handling fee. The final price is only about 12% of the price you paid. There is a calculator here, you can enter your shopping amount and calculate how much tax you can get back.

For example, if you buy a bag worth 1,000 pounds, you will get about 122 pounds back in the end. According to computer calculations, the more things you buy in the same store, the higher the tax refund rate. For example, if you buy 10,000 pounds of things, you can get 1,400 pounds in tax refund.