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