Buying free of VAT or reclaiming VAT when leaving the country

Randvegeta

Hello all,

I saw an old thread (recently revived) but since it seems largely inactive, I thought I'de start a new one.

I'm thinking of buying an engagement ring in the near future and am considering where I should buy it. I have seen a number of suitable rings in the UK but with the hefty 20% VAT, was wondering if there was any way I could avoid/claim it back.

I am a UK national but I live in Hong Kong (I am an HK national too).

I have a budget of between 6,000 and 9,000 GBP which represents a VAT bill of between 1,000 and 1,500 GBP.

With VAT, the prices are considerably more expensive than I would be able to buy the rings for in HK, but without VAT they may even be a little cheaper.

As a UK national, would I be able to claim back any VAT since I do not live in the UK?

With a saving of 1,000 - 1,500 I could buy a bigger/better ring or take spend a weekend in New York or something

Possible or not?

(I should mention I'm flying back to HK via UK and am currently in Europe. Flying to the UK from HK would be time consuming and expensive and would mean no savings).

antonic

Look here : http://www.hmrc.gov.uk/vat/sectors/consumers/overseas-visitors.htm

For more info

System

Your difficulty will probably be finding a jeweller with the ring that you want that operates the Retail Export Scheme.

forgotmyname

But it just before you go paying the VAT free price and get it shipped to your new non UK address?

Would that work?

System

I would think the insurance alone would outweigh the VAT for shipping a £6-9k ring from UK to HK

choc_mouse

Sure it's possible. There are plenty of jewellers that offer VAT back to visitors. Big department stores or the independent shops on Hatton Garden in London almost definitely do. If not sure, just ask! You just need to satisfy the customs officer at the point of departure from the EU (see the HRMC link posted above).

I think your main hurdle will be proving you will leave the UK for a continuos period of 12 months. But with a Hong Kong passport (and hiding your UK one) it might be OK. I've never been able to claim back VAT so don't really know what they check though...

You also need to think how long you will be in the UK in case the jeweller needs some time to make/re-size the ring. Can be anything from a few days to 2-3 weeks depending on how busy they are and how complicated the ring is. Plus you must make the claim (i.e. leave the EU) within 3 months of purchase.

Randvegeta

Sounds like it's not really worth the hassle.

I don't hold an HK passport. I have an HKID card which is all I need to enter/leave HK. I only use my UK passport.

Proving I live in HK may be easy, may be difficult. Depends on what they ask for. If what they need is proof that I am able to live there and my word, then easily done! If they want things like employment records, or proof of address.. much more difficult since I am moving BACK to HK after living in Europe for the last 7 years. I havn't lived in England since June, and have been in other EU countries since.

On the chance of not being able to claim back the 20% VAT paid, and the time it may (or may not) take to get it 'delivered' and the insurance worries, it seems like it's not really worth while, and I would be better of getting it in HK.

Thanks everyone.