Tax-Free Shopping in the UK: What Visitors Should Know

Published 18 September 2026 · By the Guide to London editorial team · Editor: Terje Moy

No: since 1 January 2021, visitors can no longer claim back VAT on goods they buy in London (or anywhere else in Great Britain) and take home in their luggage. The only tax-free option left in Great Britain is to have a shop send your purchase straight to an address outside the UK, and a separate refund scheme still exists only in Northern Ireland.

VAT (value added tax) is the UK's sales tax. In shops it is already included in the price on the label, so you never see it added at the till. For most goods the rate is 20%, which means that on an item costing £120, £20 is VAT.

Until the end of 2020, visitors from outside the European Union could get most of that tax back on the high street by filling in a form in the shop and having it checked at the airport. That scheme has gone in Great Britain. Many travel guides, blogs and even some shop and travel company pages have not caught up, so this page explains what the official rules say, what is still possible and which promises to ignore.

How VAT works in UK shop prices

The UK has three VAT rates. According to GOV.UK, the standard rate of 20% applies to most goods and services, a reduced rate of 5% applies to some items (children's car seats and home energy are examples), and a zero rate applies to things such as most food and children's clothes. Some things, like postage stamps, are exempt. The standard rate has been 20% since 4 January 2011.

Because VAT is built into the price, it is easy to work out how much tax you are paying. At the standard rate, divide the price by six. A £600 handbag contains £100 of VAT; a £90 jumper contains £15. Visitors from countries where sales tax is added at the till, such as the United States and Canada, often find that UK price labels look high but are in fact the final price.

These figures show the size of what visitors lost when the refund scheme ended. Refunds under the old scheme were often reduced by handling fees, but on expensive purchases the amount could still be meaningful. For a sense of how shopping fits into your overall budget, our guide to what a London trip costs gives typical daily spending.

What changed on 1 January 2021

When the Brexit transition period ended on 31 December 2020, the government withdrew two separate arrangements. HMRC confirmed both in its Revenue and Customs Brief 21 (2020).

• The VAT Retail Export Scheme (VAT RES) was withdrawn in Great Britain (England, Scotland and Wales). This was the high-street scheme that let non-EU visitors reclaim VAT on goods they took home in their luggage.
• Airside tax-free shopping (a concession known as ESC 9.1) was withdrawn throughout the UK. This had allowed shops at airports and ports to sell goods without VAT to passengers flying to destinations outside the EU.

Purchases made under the old scheme on or before 31 December 2020 remained eligible under the old terms. Anything bought from 1 January 2021 onwards is not.

For visitors this means the price you pay in a London shop is the final price, whether you are shopping on Oxford Street, in a luxury store such as Harrods or at an outlet centre outside London. There is no form to fill in, and nothing to reclaim at the airport.

The option that still works: shipping goods abroad

GOV.UK says you can only buy tax-free goods from shops in Great Britain if they are delivered straight to an address outside the UK. In other words, the shop exports the goods for you, and because they are exported, the sale can be made without UK VAT.

Not every shop offers this, and GOV.UK tells shoppers to check with the retailer. You cannot take the item with you: it has to be sent by the shop, not carried in your suitcase.

Before you choose this route, think about the whole cost:

• Delivery charges for international shipping and insurance can be high, especially for bulky or valuable items.
• Import taxes at home. When the parcel arrives, your own country may charge import VAT, sales tax or customs duty. For many countries this can cancel out most of the UK saving.
• Waiting time. You will not have the item during your trip, and returns from abroad are harder.

Shipping makes the most sense for large, expensive purchases that you would not want to carry anyway, such as furniture, art or a set of tableware. For clothes, cosmetics or a single gift, the extra cost and hassle rarely pay off.

Northern Ireland: the one place VAT refunds continue

Under the arrangements for Northern Ireland, the VAT Retail Export Scheme still exists there. According to GOV.UK, you can sometimes get VAT refunds on goods you buy in Northern Ireland if you visit Northern Ireland and live outside Northern Ireland and the EU (there are also rules for some students, workers and people leaving for at least 12 months).

The main conditions are:

1. Buy from a retailer that offers the scheme. Not all do.
2. Ask for form VAT 407(NI). The retailer will want proof that you are eligible, such as your passport and travel documents.
3. Take the goods out of Northern Ireland and the EU within three months of buying them.
4. Show the goods, the completed form and your receipts to customs when you leave Northern Ireland or the EU.
5. Get your refund at an airport refund desk, or by sending the approved form to the retailer or its refund company. Some charge a handling fee.

There is an important catch for London visitors. GOV.UK says you will not get a VAT refund if you travel from Northern Ireland straight to Great Britain, or to Great Britain through any EU country, including the Republic of Ireland. So a shopping stop in Belfast on the way to London does not qualify. Some goods are also excluded altogether, including items you have already used, hotel bills and other services, cars and unmounted gemstones. Read the full list on GOV.UK before relying on the scheme.

Duty-free at the airport: what it does and does not mean

The words "duty-free" and "tax-free" are often mixed up, and airports are where the confusion is greatest.

Since 2021, shops at UK airports can no longer sell general goods such as clothing, electronics or cosmetics free of VAT. However, HMRC-approved "export shops" can still sell alcohol and tobacco free of excise duty to passengers travelling to a destination outside the UK. These shops are usually in the departure lounge after security.

For everything else, airport prices include VAT like any other shop. Any discount an airport shop offers is its own pricing decision, not a tax refund, so compare the price with the high street before buying. If you are still choosing where to fly from, our guide to London's airports compares them, and our Heathrow guide covers the largest.

Misleading promises to watch out for

Because the change came suddenly and many web pages were never updated, you may still read that visitors can shop tax-free in London. Be sceptical of any of the following:

• Old travel articles and blogs that describe filling in a VAT form in the shop and claiming it back at the airport. That describes the pre-2021 system.
• News stories from 2022 saying tax-free shopping is "coming back". It did not.
• Promotional pages for shopping destinations, tours or transport that say international visitors "can benefit from tax-free shopping" without explaining the conditions. Unless the offer is delivery to an address abroad, or the purchase is made in Northern Ireland, it does not match the official rules.
• Refund apps and agents offering to reclaim UK VAT on goods you carried out of Great Britain. There is no scheme for them to claim under.

The only reliable source is GOV.UK. If a shop tells you that you can get VAT back, ask exactly how: if the answer involves you carrying the goods home from Great Britain, it is not an official route.

What you might pay when you get home

Buying in London without a VAT refund does not end the tax story. When you return, your own country's customs rules apply to what you bring back. Many countries let travellers bring in a certain value of goods free of tax, and charge import VAT or duty above that limit. The limits and the way they are applied vary widely, so check your own customs authority's website before you buy anything expensive.

The same logic works in reverse when you arrive in Britain. The UK has its own allowances for goods bought abroad, which our guide to UK customs allowances explains. And if your trip continues to an EU country, that country's own tax-free scheme for non-EU residents may apply to purchases made there; check its official rules.

How to shop smart in London without a VAT refund

With no refund to count on, the usual rules of careful shopping matter more:

• Compare prices across countries. International brands often charge different prices in different markets. The UK is not always the cheapest place to buy.
• Use the sales. London's big seasonal sales, particularly after Christmas and in summer, can save as much as a VAT refund once did. Our guide to London's department stores is a good place to start.
• Watch card fees and exchange rates. Overseas transaction fees and a poor exchange rate can add several percent. If a card machine offers to charge you in your home currency, compare the rate before accepting. Our guide to money and cards in London covers this.
• Buy things that are special to London rather than global brands you can find at home. Our page on London souvenirs worth buying has ideas, and the small shops around Covent Garden and Seven Dials are good for independent labels.

For more ways to stretch your budget, see our guide to London on a budget.

Frequently asked questions

Can tourists get a VAT refund in London?

No. The VAT Retail Export Scheme was withdrawn in Great Britain on 1 January 2021, so you cannot reclaim VAT on goods you buy in London and take home. The only tax-free option is to have the shop deliver the goods directly to an address outside the UK.

Is tax-free shopping coming back to the UK?

There is no current scheme and no date for one. A plan announced in September 2022 to reintroduce tax-free shopping was never implemented. Check GOV.UK's tax-free shopping page for the latest official position rather than relying on news articles.

Can I still buy duty-free at Heathrow?

HMRC-approved export shops at UK airports can sell alcohol and tobacco free of duty to passengers travelling to destinations outside the UK. Other goods, such as clothing and cosmetics, now include VAT at airport shops just as they do on the high street.

What is the VAT rate in the UK?

The standard rate is 20% and applies to most goods and services. A reduced rate of 5% and a zero rate apply to some items, including most food and children's clothes. VAT is always included in the price shown in shops.

Can I get a VAT refund in Northern Ireland and then fly to London?

Not if you travel straight to Great Britain or through an EU country such as the Republic of Ireland. GOV.UK says no refund is given in those cases. The Northern Ireland scheme works when you leave for a destination outside Northern Ireland and the EU.

Sources

• GOV.UK - Tax on shopping and services: Tax-free shopping (checked September 2026)
• HM Revenue and Customs - Revenue and Customs Brief 21 (2020): withdrawal of the VAT Retail Export Scheme and the tax-free shopping concession (checked September 2026)
• GOV.UK - VAT rates (checked September 2026)
• GOV.UK - Tax on shopping and services: VAT and duties (checked September 2026)
• GOV.UK - Selling duty-free or duty paid alcohol and tobacco products (checked September 2026)
• GOV.UK - Hand luggage restrictions: liquids (checked September 2026)
• GOV.UK - Bringing goods into Great Britain: tax and duty-free allowances (checked September 2026)