VAT on London Hotel Rooms

[Tom2]

I have read that the 17.5% VAT paid on hotel rooms in London is refundable. Does anyone know if this is true and if so what must be done to get a VAT refund.

[Silverfox]

We've been to England many times and have never heard of the VAT as refundable for hotels. It is refundable on merchandise you buy and take out of the country -- but never was on "consummables" such as hotel, meals out, etc.

 

So unless the rule has changed I don't think so. Depending on the VAT examiner, sometimes you had to show the merchandise as well as the receipt; some examiners were content with just the receipt for merchandise purchased.

[dbh62ark]

I can confirm Silverfox's info. If there were a way to get that VAT tax back for hotel rooms and meals, I would have done it. It's nonrefundable for services.

 

Donna

[Tom2]

Thank you,

It didn't sound right but I thought I would ask anyway.

[cberge]

This is a rumor that crops up from year to year,and I have never figured out why,but wouldn't it be nice if it was true...:)

[Globaliser]

As an individual, the only UK VAT you can recover by yourself is on goods exported by yourself (which may have to be shown to Customs before they will authorise the refund). You need to begin the arrangements with the shop from which you bought the goods, if they participate in the scheme. (You can also get some shops to export the goods for you, VAT free.)

 

However, I do like the Canadian system of getting the sales tax back on hotel expenditure.

[Aussie Gal]

Apparently you can get VAT back on hotel rooms if it is for Business purposes. I downloaded the page of VAT refunds a few months ago and that was the way it was worded.

 

We have never been able to have any part of our hotel account refunded back in 11 years of travelling to Europe.

 

Jennie

[Globaliser]

Apparently you can get VAT back on hotel rooms if it is for Business purposes. I downloaded the page of VAT refunds a few months ago and that was the way it was worded.

Was it the scheme set out in this notice? If so, it says (amongst other things):-

6.1 What is the scheme for?

If you are registered for business purposes in a country, which is not a Member State of the EC and you buy goods or services in the UK, you may have to pay VAT. This need not happen if you buy goods for export, but it may apply if what you buy is used in the UK - for example, if you take part in a trade fair.

 

If you are not registered for VAT in the UK you cannot treat this VAT as input tax, but you may be able to use this scheme to reclaim VAT charged on imports into the UK or purchases of goods and services used in the UK.

6.3 Can I reclaim VAT on all the goods and services I buy?

No. You cannot use the scheme to reclaim VAT on:

• non-business supplies. However, if a supply covers both business and non-business use, VAT can be reclaimed on the business element of the supply;
• any supply used or to be used to make a supply in the United Kingdom;
• the supply or importation of most ordinary business cars. Only 50% of the VAT incurred on the hire of lease of a car for mixed business and private purposes is allowed;
• certain second-hand goods, such as cars and antiques for which no tax invoice will be issued;
• all business entertainment/hospitality expenses;
• export of goods - but these will be zero-rated, provided the supplier has the necessary evidence; or
• goods and services, such as hotel accommodation, you have bought for resale which are for the direct
  benefit of travellers.

UK Customs is pretty efficient (some would say ruthless) about dealing with VAT, so I wouldn't rate the chances of an individual private traveller getting away with a refund claim without perpetrating some outrageous fraud.