Are VAT refunds mandatory in the UK / EU?
A friend of mine recently returned from Germany and I was asking him about VAT refund and he said that the Apple store refused to give him a refund receipt because according to the store clerk, they are only authorized to sell to local residents.
Then a friend mentioned the same when they came back from France; again from an Apple store.
They had both bought things that are quite expensive (so its not like they are asking for refunds on a charger, etc.)
Are VAT refunds optional? In this scenario can you still submit the refund request?
Best Answer
No it is not mandatory in the UK.
How do I shop tax free?
....
Find a shop that offers Tax Free Shopping. You have to be in the shop yourself when you buy the goods (although somebody else can pay for them).
taken from HMRC guide to tax free shopping
The visit London site is a little more explicit on the subject:
The VAT refund scheme is called the Retail Export Scheme or Tax-Free Shopping. Not all shops participate in the scheme, and different shops will have different minimum purchase conditions (normally around £75 in any one shop).
Shops offering tax free shopping will display the following sticker somewhere in the store:
According to the Apple web site though though they do offer tax free shopping but only through the Global Blue scheme not the Retail Export Scheme.
Tax-Free Shopping
Apple Retail UK Limited offers tax-free shopping through Global Blue for customers taking their purchases out of the European Union. Restrictions apply. Please see a Specialist for details.
Pictures about "Are VAT refunds mandatory in the UK / EU?"
Is UK part of EU for VAT refund?
UK and Isle of Man businesses can still claim refunds of VAT from the EU after the end of the transitional period but they will have to use the existing processes for non-EU businesses. This process varies across the EU so you will need to follow the procedure set out by the country from which you're making the claim.Can a UK business reclaim EU VAT?
As the U.K. is no longer a member state, U.K. businesses cannot use the EU online VAT refund system and submit online claims via the U.K. tax authority, HM Revenue & Customs (HMRC) website to claim back the VAT paid on costs incurred in EU member states after the end of 2020.Do I charge VAT to EU customers from UK?
Which country's VAT rules to use when charging VAT on services. If you're in the UK and the place of supply of your service is in the UK, you charge and account for VAT according to UK VAT rules. If you're in the UK and the place of supply of your service is in an EU country, you do not pay UK VAT.Can you get VAT refund after leaving Europe?
Can you get a VAT refund after leaving Europe? Yes, you have to leave Europe to claim your VAT refund. If you merely cross a border within the European Union, you won't be eligible: the items have to leave the taxable area, not just the country where you purchased them, in order to count as an export.How to get VAT and Import Duties Refunded after Brexit: a step-by-step guide
More answers regarding are VAT refunds mandatory in the UK / EU?
Answer 2
It's certainly not mandatory across the EU. The rules for France, where your friend was unable to obtain a refund, are described on service-public.fr:
La vente en détaxe est une exonération de la taxe sur la valeur ajoutée (TVA) sur le prix de biens achetés par des personnes de passage en France, soumise à conditions. Le commerçant est libre d'appliquer la détaxe, qui est facultative. L'acheteur ne peut pas l'exiger du vendeur.
Rough translation:
Tax-free sale is an exemption from VAT for goods bought by temporary visitors to France, subject to conditions. The seller is free to apply this exemption, which is optional. The buyer cannot demand it from the seller.
So Apple or any other company is perfectly entitled not to partake in the system if they don't want to. On the other hand, the bit about “only selling to residents” is presumably Apple policy, I don't see what could prevent them from doing it if they so wished.
Liam, Nigel and Tor-Einar have mentioned similar systems in Germany and the UK (+1) and I would speculate that it's the same everywhere in the EU as refund systems are somewhat complex and making them mandatory would place a big burden on small retail operations.
Sources: Stack Exchange - This article follows the attribution requirements of Stack Exchange and is licensed under CC BY-SA 3.0.
Images: Tavi Ionescu, Andrea De Santis, Михаил Лазаренко, Pixabay