Did you know that you can claim back the tax you pay on holiday shopping abroad?
Nearly half of the people involved in Direct Line Travel Insurance’s research didn’t know either! According to their results, in the last 2 years, only 1 in 14 people have claimed back the tax on their holiday purchases. This comes to a total of £296 million of unclaimed tax rebates that British holidaymakers have missed out on.
We Brits are really good at holiday shopping; with an average spend of £277 on a range of goods such as clothes, jewellery and, of course, souvenirs. A tax rebate on this amount would pop £35 back in your wallet to bring back home. How does your holiday money amount compare with the average? Work out how much tax you could get back – a welcome consolation for those ‘end of holiday’ blues.
The Head of Travel Insurance at Direct Line, Tom Bishop, said; “Getting some of the money you’ve spent back when returning from holiday should be an opportunity too good to miss, but millions of people aren’t taking advantage of it. We’re big spenders when it comes to shopping abroad, so the tax on these items really does add up and once you have arrived home it will be too late to claim.”
What to do to claim
We are entitled to reclaim VAT or your host country’s equivalent before we return home. The amounts are dependent on the rules of each country, but apply across a variety of nations as diverse as Israel, Japan and Thailand. You need to check if the country you are visiting gives a rebate for GST (Goods and Services Tax) or VAT. You will also need to keep all receipts as proof of purchase.
You have to make this claim before you leave your holiday destination as it can’t usually be processed once you arrive back home. Look out for specific ‘Reclaim Desks’ in the departure area of the airport or for ‘tax refund’ sections that can be found in some shops. Make sure you incorporate the extra time you will need to make your claim into your ‘last day’ planning.
This is a much more productive way to spend your time in the airport than dwelling on the fact that you will soon be back into the usual routines! Recouping some of the money you’ve already spent feels like your host country giving you a leaving present to take home – enjoy!
