How to Claim Back VAT UK: Step-by-Step Guide

Struggling to work out how to claim back VAT UK without making costly mistakes? Whether you're a small business, a non-resident, or planning a house renovation, here you'll find clear guidance on eligibility, forms, deadlines and exactly what HMRC expects—so you can maximise your VAT refund with confidence.

Who Can Claim VAT Back in the UK and What Qualifies?

If you're VAT-registered in the UK, you're usually eligible to reclaim VAT on goods and services used strictly for business purposes. The ability to claim depends on usage and documentation, not simply on being VAT-registered. You must ensure the purchase relates directly to your taxable business activities and that you hold valid VAT invoices.

In many cases, you can also reclaim VAT on expenses incurred before registration, as long as you meet the deadlines and conditions set by HMRC. If you’re not VAT-registered, the rules are different, and claiming VAT becomes far more limited.

Here’s what qualifies for a VAT refund in the UK:

  • Business purchases: Items bought strictly for business use such as computers, office supplies, or tools.
  • Professional services: VAT paid on accountants, consultants, and legal services if used for business purposes.
  • Vehicles used for work: Only if the vehicle is not available for personal use or meets specific rules like being a taxi or a lease replacement.
  • Travel and subsistence: Costs for employees' accommodation and meals on business trips, excluding client entertainment.
  • Goods and services pre-registration: Items bought before you registered for VAT—up to four years for goods and six months for services.

How to Claim Back VAT in the UK as a Business

Claiming VAT back in the UK involves submitting accurate information through your VAT return. Here's how to make sure your claim is valid and complete.

1. Keep Accurate VAT Records

You must store valid VAT invoices for all business expenses. These must show the supplier’s VAT number and a clear breakdown of charges.

2. Calculate Input and Output VAT

Work out how much VAT you've paid on business purchases (input tax) and how much you’ve charged customers (output tax). The difference determines your VAT refund or liability.

3. Submit Your VAT Return Online

Use Making Tax Digital (MTD) compatible software to submit your return. This usually happens every quarter. Enter your claim in “Box 4” to reclaim input VAT.

4. Claim Pre-Registration VAT

You can claim for goods purchased up to four years ago and services from the last six months, as long as they’re still relevant to your VAT-registered business.

5. Reclaim Partially Business-Used Items

For mixed-use items (e.g., home broadband or phones), calculate the business-use percentage and only reclaim the VAT portion related to your business.

How to Claim VAT Back as a Non-UK Resident or Tourist

If you’re a tourist or non-UK resident, you might be eligible to claim back VAT on goods bought during your stay. Here's how the process works.

  1. Shop at participating retailers: Not all UK shops offer VAT refunds. Look for those that provide VAT 407(NI) forms.
  2. Get a VAT refund form: Present your passport and travel documents when purchasing. Ask the retailer for the form at checkout.
  3. Export the goods: You must take the goods outside of the UK and EU within 3 months of the purchase.
  4. Present your documents at customs: Show the goods, the form, and receipts to customs officials when leaving the country.
  5. Submit your approved form: You can send it to the retailer or use a refund provider. Some may deduct an admin fee.

How to Claim Back VAT When Leaving the UK

Leaving the UK permanently or as part of extended travel? You may be eligible to claim back VAT on goods exported outside the UK. Here's how:

  • Meet residency criteria: You must live outside the UK and EU or be leaving for at least 12 months.
  • Make eligible purchases: Buy goods from shops offering the tax-free scheme, and take them with you when departing.
  • Get a VAT 407(NI) form: Provide travel proof to the shop, then complete the form accurately.
  • Show goods and documents to customs: At the airport or port, present your purchases, form, and receipts for approval.
  • Send your approved form: Submit it to the store or refund provider for payment, often by bank transfer or cheque.

Can You Claim Back VAT on Property and Renovation Costs?

Yes, but only in specific circumstances. This section should be written in a paragraph format of around 100 words.

You can claim back VAT on certain construction or renovation works—but only when the property is either a new residential build, a conversion, or used for qualifying charitable purposes. The most common way to claim is through the VAT431C or VAT431NB forms provided by HMRC.

Claims must be made within three months of project completion and supported by detailed invoices. For renovations that involve a listed building or disabled adaptations, reduced rates or exemptions may apply. Mixed-use properties or projects involving personal elements typically reduce the amount you can reclaim.

Mistakes to Avoid When Claiming VAT and What HMRC Expects

Filing your VAT claim incorrectly can lead to delays, penalties, or rejections. Here's what to avoid and what HMRC expects from you:

  • Claiming on personal items: Only reclaim VAT on expenses used exclusively for your business. Anything personal is not eligible.
  • Missing invoices: You must keep a valid VAT invoice for each item you claim. HMRC will reject unsupported claims.
  • Incorrect vehicle claims: Vehicles must be used 100% for business to reclaim full VAT. Otherwise, only a portion or none at all applies.
  • Late claims: You must follow strict time limits—four years for goods, six months for services pre-registration.
  • Not using MTD software: VAT returns must now be submitted via Making Tax Digital. Using manual forms or non-compliant tools is no longer accepted.

Frequently Asked Questions About Claiming VAT Back in the UK

Trying to understand your VAT refund rights in the UK can be frustrating—especially when rules differ for tourists, businesses, and exporters. Here you'll find straightforward answers to the most common queries.

How can I claim VAT back from purchases made in the UK?

You might be wondering how to claim VAT back from purchases in the UK if you're a visitor or a non-resident. However, since 1 January 2021, the UK government has removed the VAT Retail Export Scheme, which previously allowed tourists to reclaim VAT on goods they took out of the country.

Because of this change, you can no longer get a refund on VAT for items bought and carried out of the UK. Whether you're a tourist or a returning resident, purchases made in-store are no longer eligible for VAT refund at departure points like airports.

How do I claim VAT back if I leave the UK?

If you're planning to leave the UK and were hoping to reclaim VAT, it's important to know that the VAT refund scheme for tourists and non-residents has been discontinued. You can no longer request VAT refunds on eligible purchases when departing the UK.

This rule applies whether you're flying home, relocating, or heading to a non-EU country. The only exception would be if you qualify under specific business export schemes or are exporting goods commercially and meet HMRC’s requirements.

Can I claim VAT back at UK airports?

You used to be able to claim VAT back at UK airports, including Heathrow, by submitting refund forms at dedicated desks before departing the country. However, these services are no longer available since the government ended the VAT Retail Export Scheme.

Now, even if you’re a non-UK resident or a tourist, you won't find refund counters or customs validation desks offering VAT reclaim services. Airport purchases and other goods are charged with VAT without the option for a refund upon exit.

How can I claim VAT back from online purchases in the UK?

Wondering how to claim VAT back in the UK from online stores? Most online purchases are treated the same as in-store sales, but there are exceptions.

🔹Direct Overseas Delivery: Some UK retailers may zero-rate VAT if the item is delivered directly to a non-UK address. Always check with the seller.
🔹Business Exporters: If you're a business and the goods are for resale or commercial use, you may be able to reclaim VAT through HMRC.
🔹Proof of Export: For online orders exported manually, you need to maintain documentation showing the items left the UK.
🔹Tourist Refunds: Currently, tourists cannot reclaim VAT on online orders delivered within the UK, even if they later leave the country.

How do I claim VAT back when exporting a car from the UK?

If you're exporting a car from the UK and hope to reclaim VAT, there are some strict conditions you'll need to meet:

🔹VAT Qualifying Vehicle: Only vehicles marked as VAT-qualifying are eligible for VAT refunds.
🔹Proof of Export: You'll need to present shipping documents and evidence that the car has physically left the UK.
🔹Export Time Limit: In most cases, the car must be exported within three months of purchase.
🔹Dealer Participation: Not all sellers handle export VAT claims, so always confirm this before buying.
🔹Non-UK Residents: If you're a private buyer from overseas, you must also register for a personal export scheme and complete all necessary forms.

How much VAT can you get back in the UK?

If you were hoping to get back VAT paid in the UK as a tourist, the unfortunate truth is that refunds are no longer
possible. The previous retail scheme has been fully abolished.

For businesses, however, you can still reclaim input VAT on eligible business expenses. If your input VAT exceeds your output VAT, the balance can be refunded by HMRC. This is done through your standard VAT return, usually filed quarterly.

Can tourists claim VAT back in the UK?

Nueva respuNo—tourists can’t claim VAT back in the UK anymore. The tax-free shopping option was removed in 2021, ending refunds for visitors buying goods to take home. Even if you keep receipts and meet previous eligibility rules, refunds are no longer honoured under the current legislation. Your only option may be to purchase from a retailer that zero-rates international deliveries.esta

Can I claim back VAT paid in the UK?

Nueva respuIf you're a UK-registered business, you can reclaim VAT on purchases that are wholly and exclusively for business use, using your VAT return. This includes things like office supplies, equipment, or professional services.

If you're not VAT-registered, you can't reclaim anything. Non-UK businesses may still use HMRC’s refund schemes if they meet specific criteria and can provide valid invoices. Tourists and individuals cannot claim VAT under current rules.esta

Subir