VAT refunds for UK purchase

[Tim010]

I have a question regarding VAT refunds from the UK. I live in Canada and am buying a watch in a few weeks when I go visit family there. From looking on the websites for the tax refund places you declare the watch at the last EU airport you leave.

My question is that I am flying from Manchester to Edmonton, AB through Reykjavik in Iceland. Iceland is technically not in the EU but is in the EEA. Am I able to claim the VAT refund in Manchester Airport or do I "have" to do it in Iceland. I can't seem find anything on the web to confirm this. I would obviously prefer to get the refund in Manchester as time may be an issue for the connection in Reykjavik.

Thanks

Tim

[Nairn1980]

Not sure on the VAT question, but what do you plan on buying?

[WatchOut4It]

I would ask at the point of your transaction as they'll probably know the policies best. My guess is that you'll claim in Manchester, particularly if you're just transferring in Reykjavik.

What are you gonna get? :-)

[Tim010]

Originally Posted by WatchOut4It

I would ask at the point of your transaction as they'll probably know the policies best. My guess is that you'll claim in Manchester, particularly if you're just transferring in Reykjavik.

What are you gonna get? :-)

Probably gonna get the new Air King as I like the style of it. Have already been in touch with an AD regarding the purchase.

Tim

[Nairn1980]

Originally Posted by Tim010

Probably gonna get the new Air King as I like the style of it. Have already been in touch with an AD regarding the purchase.

Tim

Great choice and even without the VAT refund, I think the new Air-King is the bargain of the Rolex range. It's a fabulous watch.
If they can source you one, you're in for a great watch at a great price!

[Vivalas]

Originally Posted by Tim010

Probably gonna get the new Air King as I like the style of it. Have already been in touch with an AD regarding the purchase.

Tim

At be hard to source one unless you can do the leg work before you leave.

[Tim010]

Originally Posted by Vivalas

At be hard to source one unless you can do the leg work before you leave.

Yeah I've done some leg work already so the AD I'm using should have one in stock for me.

Tim

[WatchOut4It]

Nice!

I recently purchased my Explorer I in London and then flew to Barcelona for a week. Even though my return to the US was through Munich, I claimed VAT (successfully) in Barcelona before leaving. I think you'll be fine in Manchester but there are enough Global Blue reps throughout the U.K. that you'll have no lack of people to call on once there to help you straighten it out.

FYI: VAT refund works out to be about 14% after the formal fees. Be aware that the refund itself is hit with a bunch of less obvious fees as well -- currency conversion at crappy rates (which you can't avoid), service fee etc. Still works out to be a deal, but go in with eyes open if you didn't know all this already.

[cherrycher]

You need to get tax refund receipt from the seller and fill in details such as your address, date of entry and date of leaving. Then you take your recipes to the airport to get custom stamp and tax back. In Heathrow airport, you just need to show the custom officer your passport/residency card to show that you are not living in the U.K. I don't think they need to see your flight tickets details. I would imagine Manchester airport should be the same.

Air king is a great watch. My husband just bought one and he loves it.


Sent from my iPhone using Tapatalk

[RJ_88]

as you are a resident from Canada it doesn't matter where you fly from. Buy the watch in the UK and when you leave from UK airport claim the tax back at customs. 20% back straight away.

[SC11]

Originally Posted by RJ_88

as you are a resident from Canada it doesn't matter where you fly from. Buy the watch in the UK and when you leave from UK airport claim the tax back at customs. 20% back straight away.

BTW it's not 20%

[Tim010]

Originally Posted by SC11

BTW it's not 20%

Yeah this is the quote I got from the AD for the watch and the VAT refund

Air King at £4,550


Total VAT = £758.48 (16.67% of the total)
Admin Fee = £135.13

Total Refund = £623.35 (13.7% of the total)

[WatchOut4It]

Originally Posted by Tim010

Yeah this is the quote I got from the AD for the watch and the VAT refund

Air King at £4,550


Total VAT = £758.48 (16.67% of the total)
Admin Fee = £135.13

Total Refund = £623.35 (13.7% of the total)

That's about right for the "on paper" refund. When it actually gets returned to your credit card, expect ~90% of that quoted amount to end up back in your hands. Per my post above, the VAT refund company uses a less than ideal currency conversion rate and, on top of that, hits you with another 3% fee. Price should still work out better than buying the AK in Canada. Good luck!

[Constantine]

Originally Posted by Tim010

I have a question regarding VAT refunds from the UK. I live in Canada and am buying a watch in a few weeks when I go visit family there. From looking on the websites for the tax refund places you declare the watch at the last EU airport you leave.

My question is that I am flying from Manchester to Edmonton, AB through Reykjavik in Iceland. Iceland is technically not in the EU but is in the EEA. Am I able to claim the VAT refund in Manchester Airport or do I "have" to do it in Iceland. I can't seem find anything on the web to confirm this. I would obviously prefer to get the refund in Manchester as time may be an issue for the connection in Reykjavik.

Thanks

Tim

I am almost certain that VAT is only for the EU not EEA, so you should claim the tax when leaving the UK.

[RolexJames]

100% certain that Iceland is not counted as in the EU for duty/VAT purposes when travelling from the UK. UK residents can get duty free goods when travelling to Iceland.

[KarlS]

https://www.gov.uk/government/public...ping-in-the-uk
Last point of departure

[henry333]

It won't be 20%. ... depends on the company used for the refund etc.
guessing .. 12% ish.

[TeddyBallGame]

If you have a good credit card you can maximize the VAT refund from Global Blue by having them refund the amount back to your card. Some cards will give you a better exchange rate with no foreign transaction fees. This is a better option than having Global Blue give you cash after they've exchanged the currency with their rate.

[WatchOut4It]

Originally Posted by TeddyBallGame

If you have a good credit card you can maximize the VAT refund from Global Blue by having them refund the amount back to your card. Some cards will give you a better exchange rate with no foreign transaction fees. This is a better option than having Global Blue give you cash after they've exchanged the currency with their rate.

Unfortunately, this is *not* the case. Global Blue credits your card using the card's default currency. You don't get an option to be refunded in GBP and must take the credit in your local currency, post Global Blue's extra fees and currency conversion. It's one of those lessons some of us learned the hard way. Still pays to buy in London, but it hurts to get less back than you expected! ;-)

[KarlS]

Originally Posted by WatchOut4It

Unfortunately, this is *not* the case. Global Blue credits your card using the card's default currency. You don't get an option to be refunded in GBP and must take the credit in your local currency, post Global Blue's extra fees and currency conversion. It's one of those lessons some of us learned the hard way. Still pays to buy in London, but it hurts to get less back than you expected! ;-)

Don't forget the 8 weeks they take and it goes to Slovakia!!! I stopped using GB, Premier Tax and all of them ages ago!!

[DocJacko]

I would keep it simple and request the refund to be issued to you in cash in the local currency. This way you don't get hit with currency conversion costs, and you have some funds to blow on your next trip to the UK.

[Dyim]

If you figure in paying for duty coming back to Canada, not sure how far ahead you will be. Might be better just start to build a relationship with your local AD IMO.

[Tim010]

Originally Posted by Dyim

If you figure in paying for duty coming back to Canada, not sure how far ahead you will be. Might be better just start to build a relationship with your local AD IMO.

The reason I'm buying in the UK over using my local AD is that the watch is being bought for me as a gift by my parents who live in the UK. It should work out a "little" better due to the GBP being fairly weak at the moment.

Tim

[KarlS]

Ok my circumstances with my AD are a little different but here are 2 proven methods I use to maximize my VAT:
a). Pay in full and get them to issue 407 form. Have that stamped at Customs at exit and put form in stamped, self addressed envelope back to the AD. They then credit my account in GBP within a week the full Vat and no charges;
B). Pay the watch in full and have them do a hold on your credit card for the vat amount. Customs stamp as per above and post to AD. Upon receipt they release the hold. That way no physical cross currency rip offs on card.
All done numerous times and it works.

[WatchOut4It]

Originally Posted by KarlS

Ok my circumstances with my AD are a little different but here are 2 prove. Routes that I use to maximize my VAT:

Amazing! I might be buying again while in London next month. I'll give this a try. Thanks!

Would you mind sharing your AD's name? Feel free to PM me if you don't want to post publicly.

[Tim010]

So just thought I would post an update regarding my VAT refunds on the Air King I bought in Leeds, UK. The AD completed the VAT refund forms for me and they use Premier Tax Free. The information on the paperwork and their website is slightly out of date as Manchester Terminal 1 now has a Travelex counter that is able to process the refunds. The staff there said they only opened last September and some of the companies have not updated their paperwork accordingly.

Travelex reviewed the forms and after checking my passport/boarding card and quickly viewing the watch they confirmed the refund would be either about 620 GBP if I wanted it refunded to my credit card in 2-3 weeks or it could be cash in whatever currency I wanted straight away for a fee of 2.50 GBP. I took the cash straight away as the refund was going to my parents anyway.

Upon arrival at Edmonton I declared the watch to CBSA. Very quick to process the duty which unfortunately was 5% GST and 5% duty (about $700 total). The agent said had I bought the watch in the USA I would only have had to pay the GST even though the watch is made in Switzerland. I didn't consider not declaring the watch as I am a NEXUS card holder and would likely lose this privilege if I was caught not declaring.

Tim

[Dyim]

So did you come out ahead compared to buying in Canada?

[Tim010]

Originally Posted by Dyim

So did you come out ahead compared to buying in Canada?

So watch purchased at 4550 GBP with VAT refund of 620 GBP so in UK funds paid a total of 3930 GBP.

3930 GBP at exchange rate of 1.66 is $6523 CAD. Plus customs fees of $700 so my cost was $7223.

Cost in Canada of the watch would be $7100 plus 5% GST of $355 so a total of $7455.

So even with declaring the watch and paying the full 5% GST and 5% import duty I was $232 ahead.

Tim

[Dyim]

Discount from AD?

Anyways, pics?

[Tim010]

No discount on the watch. I did ask and they said it was a high demand watch that they couldn't discount even if cash was used. The watch had been put aside for me when it came in a few weeks before and had never been put on display.