Taxes in London

Taxes

An airport departure tax of £20 (£10 for flights within the United Kingdom and other EU countries) per person is included in the price of your ticket. The fee is subject to government tax increases.

Value-Added Tax

The British sales tax (V.A.T., value-added tax) is 17 1/2%. The tax is almost always included in quoted prices in shops, hotels, and restaurants.

Most travelers can get a V.A.T. refund by either the Retail Export or the more cumbersome Direct Export method. Many, but not all, large stores provide these services, but only if you request them; they will handle the paperwork. For the Retail Export method, you must ask the store for Form VAT 407 (you must have identification -- passports are best), which you should give to customs at your last port of departure. (Lines at major airports can be long, so allow plenty of time.) Be ready to show customs officials what you've bought (pack purchases together, in your carry-on luggage). The refund will be forwarded to you in about eight weeks, minus a small service charge, either in the form of a credit to your charge card or as a British check, which American banks usually charge you to convert.

With the Direct Export method, the goods are shipped directly to your home. You must have a Form VAT 407 certified by customs, the police, or a notary public when you get home and then send it back to the store, which will refund your money. For inquiries, contact Her Majesty's Customs & Excise office.

A service processes refunds for most shops. You receive the total refund stated on the form. Global Refund is a Europe-wide service with 210,000 affiliated stores and more than 700 refund counters -- located at major airports and border crossings. Its refund form is called a Tax Free Check. The service issues refunds in the form of cash, check, or credit-card adjustment. If you don't have time to wait at the refund counter, you can mail in the form instead.

V.A.T. Refunds

Global Refund Canada (Box 2020, Station Main, Brampton, Ontario, L6T 3S3. 800/993-4313. 905/791-9078. www.globalrefund.com). Her Majesty's Customs & Excise office (0845/010-9000 within U.K.; 208/929-0152 from outside U.K. customs.hmrc.gov.uk).