VAT---Get your taxed money back !

A lot of people are wondering how and where can we claim for VAT refunds and also what can we claim for VAT refunds. So to answer some of your inquiries, we did some research and gathered some information from the HM Revenues & Customs Department of the Government of UK.

VAT ? What is it that anyway?

VAT, in long, means Value Added Tax - a tax levied on sales of goods and services but is indirectly transferred to the end consumer of the product/service, which is BAD for us (the pitiful consumers).

Perhaps still a bit confusing? Let's make it into Malaysian term = government tax or good/service tax.

Good News!!

Fret not. For foreigners in UK (erm, us?), we are open to opportunities of getting tax refund on certain goods/services we purchase.

Some of our successes

• iPhone 4 (it was really a hit back then)
• Perfumes (yum yum, buy lots of these, they are definitely much cheaper in Malaysia)
• Branded items - LV, LongChamp, AX etc

Our list is not too long, but generally it applies for rather expensive stuff (or at least you have a rather decent amount on your bill.

So how to go about this?

• First of all, to enable us to have a VAT refund, the shop must be operating under the VAT Retail Export Scheme. This is a voluntary basis scheme, which means we can only get a VAT refund only if the shop is operating under this scheme.

• You should always asked the shop keeper first whether you could claim for VAT before you make any purchases, and the minimum amount of payment that will entitled you for a VAT refund, because the minimum amount of payment that entitled you for a VAT refund differs from shop to shop.

• Basically the shop keepers will give you a VAT form with a big envelope whereby you will fill up the form with your details,  and your signature. The shop keeper would also fill up there details and sign in the VAT form.

• Make sure that you keep you VAT form and receipt together, and also the goods you've purchased that you want to claim for the VAT refund, because the customs will check before he or she allows you to make the refund.

• Some shops they'll make a VAT refund on-the-spot when you make your payment, so it is best that you ask before you make any purchases.

• MY friends have bought branded clothing, bags, and perfumes, and they credited the refund through their own or friends credit cards. Some actually went to queue up for the cash refund where they really regretted for doing it.

Little Tips :

Some tips that we got from our tour guide. If possible, please credit your VAT refund to your credit card, because there will be a long queue for VAT refund in the airport, and if you want to take cash, you'll have to queue up twice, once at the VAT refund counter and another queue to obtain your cash which is definitely another long queue that will take up a lot of your time. We believe you would rather spend more time in the duty free shops rather than wasting so much time queuing for the cash refund.

You can refer to this link for further information