What determines your refund amount
Your refund depends on three things: how much VAT (Value Added Tax) you paid while shopping, which shops you bought from, and whether you meet the minimum purchase threshold. VAT is a 20% tax added to most goods in the UK. When you leave the country, you can reclaim that VAT on items you're taking with you — but not on services, food eaten in restaurants, or petrol.
The amount you get back is not the full 20%. Refund companies take a commission (usually 15% to 25% of the VAT you paid), and the retailer may also take a cut. So if you paid £100 including VAT on a coat, the VAT portion is roughly £16.67, but you might receive £12 to £14 after fees.
Different retailers use different refund schemes, and each has its own minimum spend requirement before they'll process a refund. Some require £25 spent in one transaction; others want £50 or £100. Check the retailer's policy at the till point — they'll tell you whether they participate and what their threshold is.
Key Takeaways
- Your refund is based on the VAT (20% tax) you paid on goods, minus commission fees of 15% to 25%, so you typically recover 60% to 70% of the VAT amount.
- You must spend above the retailer's minimum threshold (often £25 to £100 in a single shop) before a refund is worth processing.
- Only goods you take out of the UK count — food, alcohol consumed in the country, and services do not may have access to.
- You must claim the refund before you leave the UK, either at the airport or at a participating shop, and you need your passport and receipt.
How the refund calculation actually works
Start with your receipt total. That total includes VAT at 20%. To find the VAT amount, you cannot straightforward multiply by 0.20 — the tax is already built in. Instead, divide the total by 6. That gives you the approximate VAT portion. (The exact formula is: total ÷ 1.20 × 0.20, but dividing by 6 is close enough for mental math.)
Once you know the VAT amount, the refund company subtracts their fee. If you paid £120 total on a purchase, the VAT is roughly £20. A company taking 20% commission keeps £4 and sends you £16. Some companies quote a "net refund" percentage upfront — they might say "you'll receive 15% of your total spend" — which already accounts for their fee.
If you shop at multiple stores, each refund is calculated separately. A £30 spend at one shop and a £40 spend at another are two separate claims, each subject to the retailer's minimum threshold. You cannot combine them to reach a higher threshold unless the same retailer processes both receipts together.
Minimum spend thresholds and when they matter
Most major department stores and high street shops set a minimum of £25 to £50 per transaction. Luxury retailers often require £100 or more. If you spend £20 at a shop with a £25 minimum, you will not be offered a refund — the retailer straightforward will not process it.
The threshold exists because the refund company's fee makes small refunds uneconomical. A £5 refund after fees becomes £3 or £4, which costs more to process than it's worth. Retailers set thresholds to avoid handling tiny claims.
Some shops display their threshold at the till or on their website. If you are unsure, ask before you pay. Knowing the minimum upfront helps you decide whether to buy more items in that shop to cross the threshold, or to shop elsewhere.
What you actually receive at the airport or refund point
When you claim your refund, you have three options: cash, a credit to your card, or a voucher to spend in that retailer's other stores. Cash refunds usually come in pounds sterling. Card refunds take 5 to 10 working days to appear. Vouchers are when ready but only work at that chain.
The amount you receive is the VAT minus the company's fee. If you claimed £50 in VAT across multiple purchases and the average fee is 20%, you will receive roughly £40. Some refund points charge an additional processing fee (£1 to £3) if you claim in cash, so card or voucher may net you slightly more.
Exchange rates matter if you take cash in a currency other than pounds. Airport exchange rates are typically worse than high street rates, so if you have a UK bank card, requesting a card refund is often the better choice.
Items that do and do not may have access to
Goods you take out of the UK in your luggage may have access to: clothes, shoes, electronics, cosmetics, gifts, and souvenirs. The item must be unused and in its original packaging (or close to it) when you leave.
Services do not may have access to: haircuts, hotel stays, restaurant meals, theatre tickets, and tours. VAT on these is not refundable. Alcohol and tobacco have special rules — you can claim VAT back, but there are limits on how much you can take out of the country duty-free, so the refund may not be worth the hassle.
Food bought from a shop (a cake from a bakery, a sandwich from a supermarket) does not may have access to because food for consumption is zero-rated for VAT. Alcohol bought to take home does may have access to for the VAT refund, but UK customs limits how much you can take: 16 litres of beer, 4 litres of wine, or 1 litre of spirits per person.
How to claim your refund before leaving the UK
You must claim before you leave the country. The process is: show your receipt and passport at a refund point (usually in the airport departure lounge, or at a participating shop before you leave), and the company processes the claim on the spot or sends it to you later.
Some shops have their own refund desks; others use third-party companies like Global Blue or Premier Tax Free. At the airport, look for the refund company's booth — it is usually near the departure gates or in the duty-free area. Have your receipts, passport, and the items themselves ready. Staff may ask to see the goods to confirm they are unused.
If you forget to claim at the airport, you can sometimes post your receipts and passport copies to the refund company within a set time (usually 3 months), but this is slower and less reliable. Claiming in person is always the safer option.
Why your refund might be smaller than you expect
Commission fees are the main reason. A 20% fee on a £50 VAT refund means you lose £10 when ready. Some companies advertise "up to 20% back" — that is the VAT percentage, not your actual refund after fees.
Retailer deductions also reduce the amount. Some shops take a small cut before passing the claim to the refund company. This is less common but does happen, especially at luxury brands.
Currency conversion costs money if you take cash in a non-sterling currency. The airport exchange rate is typically 3% to 5% worse than the mid-market rate, so you lose a bit there too.
Finally, some refund companies have minimum claim amounts. If your total VAT across all receipts is less than £10 or £15, they may not process it — the fee would exceed the refund itself.
Frequently Asked Questions
Can I get a refund on items I bought online before arriving in the UK?
No. The refund scheme only covers goods purchased from UK retailers while you are visiting. Online purchases made before your trip, or shipped to a home address outside the UK, do not may have access to. You would need to return those items to the retailer under their standard returns policy instead.
What if I lose my receipt before I leave?
You will struggle to claim without it. Refund companies need the receipt to verify the VAT amount and the retailer. Some shops can reprint receipts if you have your card or passport details, but this takes time. Keep receipts in a safe place throughout your trip.
Do I have to open my luggage at the airport to show the items?
Possibly. Staff may ask to see the goods to confirm they are unused and match the receipt. Pack items you plan to claim in an straightforward-to-access part of your luggage, or keep them in your carry-on if they fit. Do not open packaging or use items before you claim.
Can I claim a refund if I am flying out from a different country?
No. You must claim at a UK refund point before you leave the UK. If you travel to another country first, you cannot go back to claim. Plan your refund claim for your final hours in the UK.
Is the refund worth it for small purchases?
Usually not. If you spent £30 total (roughly £5 VAT), a 20% fee leaves you with £4. The time and effort to claim is often not worth £4. Refunds make sense when you spend £100 or more in a single shop, where the VAT refund is substantial enough to cover fees and still be worthwhile.