VAT Retail Export Scheme (Northern Ireland)

VATRESNI3400 - How the scheme works: Cash Refunds

Cash refund booths at airports

Cash refunds are a commercial matter between the refunder and the visitor. HMRC cannot intervene if disputes arise between the cash refunder and customer.

Cash refund booths operate at many EU departure points (ports, airports and major land frontier crossing points). Travellers may obtain cash refunds as they leave the EU only when the retailer, through a refund company, has a prior agreement with the refund booth operator.

The maximum cash refund value is agreed between the refund company and the company administering the booth, but is typically £500 or £1000. Whilst larger amounts may also be paid in cash, by specific arrangement, normally these are paid by cheque or bank transfer to combat fraud.

Cash refunds are only available on refund company versions of the VAT 407(NI) and not the HMRC version of the VAT 407(NI). The cash booth may make a charge for this service, which is deducted from the refund company’s share of the administration fee. The cash refund booth then reclaims the refunded amount plus any service charge, directly from the refund company.

In-store refunds

Some retailers, in partnership with refund companies, provide in-store refund services. This arrangement allows eligible customers to obtain a refund (advance) equivalent to the VAT on a purchase whilst still in Northern Ireland. Typically, a swipe of a bank or credit card is taken for the VAT-exclusive amount and a further swipe is taken for the VAT. This second swipe is only processed where the retailer does not receive the certified VAT refund document within 21 days.

Down-town refunds

This arrangement is similar to an in-store refund and might be available in large retail stores or bureaux de change. Again, an extra swipe of a bank/credit card is taken, and the traveller gets a refund before the goods are exported.