VAT Retail Export Scheme (Northern Ireland)

VATRESNI8250 - Handling correspondence: Complaints about deductions

Below is a draft letter that may be used when a traveller complains about deductions such as admin charges. The letter should be adapted to suit individual circumstances.

Dear [insert name],

VAT Retail Export Scheme

Thank you for your letter of [insert date] concerning a refund of VAT received from [insert name of retailer] on goods purchased by way of the retail export scheme. 

HM Revenue and Customs set the conditions which must be met by retailers who operate the scheme, but are not responsible for refunding the VAT.  The refund (amount, method of repayment etc) is a commercial transaction between you and the retailer, agreed at the time of purchase. 

It is possible that the difference between the VAT paid on your purchase and the actual amount refunded relates to an administrative charge deducted by [insert name]. 

The retail export scheme in Northern Ireland is a voluntary scheme and retailers are under no obligation to operate it.  Those retailers who do operate the scheme usually make a charge to cover the administrative cost involved and offset it against the refund due.  The amount of any administrative charge levied is left to the discretion of individual retailers, although customers should be informed about the details of any such charge at the time of purchase. 

I hope you find this information useful. VAT notice 704/1, Claim VAT back on tax-free shopping in Northern Ireland, which can be found on the Gov.UK website, explains the retail export scheme in more detail.

Yours sincerely,