Visting the UK: Shop Smart at Harrods, Selfridges, and Harvey Nichols

If you’re an international traveler who loves combining shopping with sightseeing, you may have noticed a significant change in tax-free shopping in the UK. Prior to January 1, 2021, tourists enjoyed the perk of reclaiming VAT (Value Added Tax) on their purchases, but that benefit is no longer available. Let’s break down the situation and explore what options remain for shoppers.

What Changed in 2021?

Before Brexit fully came into effect, non-EU visitors were able to claim back VAT on purchases made in the UK. This allowed them to save money on goods they planned to take out of the country, adding an extra thrill to their shopping sprees in Britain’s high streets and luxury department stores. However, as of January 1, 2021, the UK government discontinued the VAT refund scheme for tourists.

For many visitors, this decision ended an era of cost-effective shopping in Britain. No longer can tourists claim refunds on the 20% VAT added to most items, which has left a noticeable gap for budget-conscious travelers.

What Are the Alternatives?

While you can no longer claim VAT refunds in the UK, there are still ways to maximize your shopping experience.

1. Shop and Ship: Tax-Free Delivery Options

Many prestigious department stores in London, such as Selfridges, Harvey Nichols, and Harrods, now offer an appealing alternative. These stores provide "shop and ship" services that allow international visitors to purchase goods and have them shipped directly to their home country, minus the VAT. This is a great option for high-ticket items like luxury goods or designer fashion.

You’ll need to coordinate with the store’s customer service to ensure your purchases qualify for tax-free international shipping. The convenience of shipping goods home not only saves you from carrying bulky items, but also helps you avoid the VAT charges that would have otherwise applied.

2. Shopping in the EU

Another option for tourists who miss the thrill of tax-free shopping is to head to the European Union. Unlike the UK, EU countries still offer VAT refunds to non-EU residents. So, if you’re traveling through Europe, you can still take advantage of this benefit in places like France, Spain, or Italy. Many tourists traveling from the UK to the EU have opted to take advantage of VAT refunds on purchases made in these countries instead.

Norway offers a lot all year around with Oslo, Bergen, Stavanger, and Tromso.

Copenhagen, Denmark is always a popular destination for tax free shopping.

Germany, with Berlin and many other cities offering VAT refunds.

Will Tax-Free Shopping Return to the UK?

There’s no certainty if or when the VAT refund scheme for tourists will be reinstated in the UK. The retail and tourism industries have voiced their concerns and have campaigned for the return of tax-free shopping, but as of now, the government has not indicated any plans to reintroduce the scheme.

This article in The Guardian shed some light on the current situation of tax free shopping in the UK in February and just a month earlier the UK government were being encouraged to scrap tourist tax and reintroduce tax free shopping as it was announced that tourist visiting Oxford Street in London were keeping their money to themselves and no longer shopping as freely.

Final Thoughts

While the VAT refund system may have come to an end in the UK, tourists can still enjoy tax savings through international delivery services from major retailers or by heading to EU countries that offer VAT refunds. Make sure to check store policies and plan ahead to make the most of your shopping experiences during your travels.

Stay informed, and keep an eye on future developments that may bring back tax-free shopping in the UK!