UK-anyone have experience with their clients using "tax free world wide"

UK-anyone have experience with their clients...

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Also posted in discussions-as did not see this part of the site previously

My client is a shop in central London, they sell, in store to customers who actually are non-eu nationals. The customers then re-claim their VAT via the company "tax free worldwide".

The owner of the store seems to think that we can then deduct this from the VAT bill, however, the company (tax free world wide) seemed very unsure on this.

Has anyone got any experience?

Replies (3)

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By cparker87
08th Sep 2013 00:16

If...
A is the shop, B is the customer and H is the tax office...

B buys goods from A. B is charged £10 VAT by A. A pays H £10.

At this point, everyone in an ordinary transaction chain is happy.

However, if B is a non EU National he may be able to reclaim that VAT from H.

Point is that VAT that A collected was never his in the first place.

Happy to be corrected but I think that pretty much nails it really, the relationship between B and H is naff all to do with A...

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By User deleted
08th Sep 2013 10:44

You are sort of correct but ...

... but the question was about the process if a 3rd party refund company is involved. See my answer here

And to clarify the previous response, if such a company isn not invloved, the refund does not come from HMRC - it comes from the retailer. In both cases, the retailer is not out of pocket because he then zero-rates the sale and it is he that recovers the VAT from HMRC.

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By vickym1984
08th Sep 2013 19:12

Thankyou for your replies, read your other comment, and that makes sense, thankyou

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