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HMRC internal manual

Customs Special Procedures Manual

Tax free shopping: operation of the scheme

At the point of sale, it is the retailers commercial decision whether the goods are sold to entitled customers on a duty inclusive or exclusive basis, this must be clearly identified in the IP application. If sales will be made on a duty inclusive price, details of how refunds will be made to the entitled customer must be provided (see SPE13610).

For IP purposes, if the VAT 407 is use, it must contain the following information:

  • a unique sales invoice reference, and
  • the retailers IP authorisation number.

If the VAT 407 form is not used, the traveller’s boarding card reference number and a sales invoice clearly identifying the goods must be provided.

The following details must always be for IP purposes:

  • details of the retailer
  • details of the customer
  • export destination and
  • description of the goods.