Tax-Free Shopping in London

VAT (Value Added Tax) in the UK is currently 20%, added to most goods. Visitors from outside the UK may be able to claim a VAT refund on qualifying purchases — though the UK's system changed significantly after Brexit and is now handled differently to the old EU tourist refund scheme.

Current Situation (Post-Brexit)

Since January 2021, the UK government ended the previous VAT Retail Export Scheme that allowed easy tax-free shopping for all tourists. A new scheme exists but is more limited — currently only available at specific participating retailers and airports, and primarily targeted at higher- value purchases. The situation has evolved since 2021; check the current HMRC guidance and confirm with individual retailers before making a purchase expecting a refund.

How to Claim (Where Available)

At participating retailers: request a VAT refund form at the point of purchase, keep receipts, present the form and goods to HMRC at the airport before departure, and collect the refund either there or by subsequent bank transfer. Processing companies (Global Blue, Planet Tax Free) handle the logistics at participating airports.

Which Shops Participate

Major luxury department stores (Harrods, Selfridges, Harvey Nichols) and many high-end boutiques participate in available refund schemes. Confirm with the retailer at the time of purchase rather than assuming.

Tips

• Confirm VAT refund availability with each retailer before purchasing — don't assume.
• Check current HMRC guidance online before your trip — the rules have changed and may continue to change.
• Allow extra time at the airport for customs processing if you're claiming a refund.
• Keep all receipts and packaging until you've cleared customs with your refund form.

Tax rules change — check HMRC's official guidance for the current position.