Like Shopping?

Assuming you are aware of the current exchange rates and are still willing to shop here (*smile*), there are a few things you should be aware of.  Namely, VAT.  Simply put, VAT is like sales tax, only its charged around 17% in the UK.  You can, however, as a US citizen have this money refunded to you on when you leave you the UK.

Here's how it works.    

1) When you are shopping, in order to be eligible for a VAT refund, you have to spend more than 150 pounds in a single store AND that store has to be registered for VAT refunds.  Likely the only stores that will not be able to give a refund are very small stores where you wouldn't likely be able to spend 150 pounds.  All of the major stores, department stores, Harrods, designer stores will be able to help you with the paperwork for a refund.  You can also look for this symbol:

2) When you are paying for your purchases, ask the cashier for the forms required to claim your refund.  In the boutique stores, it is likely the cashier will do this for you.  In places like Harrods, they have a separate department in the store where the refund paperwork is handled. You can decide at this time if you want cash back at the airport or the refund placed back on the credit card you used to make the purchases.  

3) Take the paperwork, your passport and the goods to the airport.  You have to take the goods with you on the plane, in a carry on bag.    

4) There is a customs desk where the office will review your paperwork, check the goods and sign your forms.  If you are requesting cash back, the officer will direct you to a bureau de change, where you can hand over the paperwork and get cash back.  There is a small fee for this service.  If you are requesting that the money be credited to your credit card, you then place the forms in the provided envelope and then drop it in the mail box (at the airport) and your refund will be processed.

Here is some official language from the government website:     

How do I claim a VAT refund when I leave the UK?

Full information explaining the conditions for being able to claim a Value Added Tax (VAT) refund, is available in Notice 704/1 VAT refunds for travellers departing from the European Community.  Please read this before you buy any goods as you will not be able to get a refund if you do not follow the correct procedures. 

Having consulted the relevant VAT Notice, you will now be familiar with the Retail Export Scheme.  Remember, when you see Customs:

1) You must have all your good available for inspection, so please see Customs before you check-in your suitcases.

2) You must ensure the tax refund document is fully competed by you and the retailer before you you reach Customs.

3) If you do not present your refund document and goods to Customs you will not get a refund.

Here is the government website all about VAT and refunds:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageTravel_ShowContent&id=HMCE_CL_000141

&propertyType=document