VAT Retail Export Scheme (Northern Ireland)

VATRESNI2200 - Basic principles of the scheme: Who can operate the VAT Retail Export Scheme

Participation in the scheme is voluntary in Northern Ireland. Some retailers choose not to operate it for administrative reasons, particularly where they rarely deal with overseas travellers. Some larger retail chains only operate the VAT Retail Export Scheme from larger stores or stores on tourist routes.

Businesses selling goods via retail outlets may use the VAT Retail Export Scheme as long as the sale meets the usual conditions of the scheme. Goods sold by mail order or over the internet are excluded from the VAT Retail Export Scheme.

Goods sold under the VAT Retail Export Scheme to visitors departing for Great Britain are subject to special rules. When visitors depart Northern Ireland directly for Great Britain the retailer must account for UK import VAT when the goods arrive in Great Britain. It is expected that most retailers will probably choose not to offer the scheme to Great Britain residents or non-EU visitors travelling directly to Great Britain from Northern Ireland. See VATRESNI3050. 

Refund companies

Many large retailers use a refund company to administer the scheme on their behalf. Refund companies will receive evidence of export (i.e. a certified VAT refund document) and make the refund. They usually provide a VAT refund document of their own design for use by retailers. These VAT refund documents must contain the same information as the form VAT 407(NI) produced by HMRC.