UK residents from England, Scotland and Wales can now claim a VAT refund on retail purchases (over €50+VAT) they make in Portugal, effective from 1st January 2021.
With more than 2.1 million UK tourists visiting Portugal in 2019, this represents a big benefit for British shoppers, who can now follow the same refund process as any other tax-free shopping nationality.
British shoppers spent approx €79 million in Portugal’s stores in 2019, with clothing and accessories and non-specialised retail seeing the largest share of British spend.
With the price of goods in Portugal being on average 5-10% cheaper than in the UK, a stronger pound/euro exchange rate, plus the additional savings offered by VAT-free shopping, the purchasing power of UK shoppers in Portugal is set to increase by up to 20%. Portuguese VAT rates vary from 23-6% depending on the type of goods purchased.
How does Tax Free Shopping work for UK residents visiting Portugal?
British residents from England, Scotland and Wales will be classified as non-EU residents and will be subject to the same eligibility criteria as any other tax free shopping nationality.
- Reside in England, Scotland or Wales. British nationals residing in Northern Ireland, or within the EU are not eligible to shop Tax Free in Portugal (proof of residency is required)
- Meet the minimum spend criteria of €50+VAT
- Export the unused goods outside of the EU within a three-month period.
In a Portuguese store, VAT-free shoppers from the UK will need to show their passport together with a separate document providing proof of address, to confirm they reside in England, Scotland of Wales. Once eligibility is determined, British tax-free shoppers will follow the usual process of completing a tax free form, which will be validated at customs when they leave the EU (before they return to the UK).
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See original article at https://portuguese-chamber.org.uk/news