Can someone explain how this works please?
I'm travelling to Denmark and would like to purchase something with the value of roughly £1700. This is the price I would be charged on the brand website that includes all taxes, duties and shipping to the UK.
Denmark has 25% VAT included in their prices. The price of the item is kr14,400 which works out to £1620. However there is 25% VAT included in that. With their 25% VAT removed the price works out to £1215. So considerably cheaper!
Apparently tourists from outside the EU can claim the VAT back at kiosks in the airport. But how does this work? If you're required to fill out a form and show your passport in order to get your tax refund, but then you're also meant to declare substantial purchases when you arrive in the U.K. and pay duty on them. So I'm confused. What is the point of claiming the tax back when you'd have to repay it again upon arriving in the U.K.?
Obviously I could claim the tax back there, and then not declare my item when I arrive in the U.K. but since they'll have all my details I'm not sure if they somehow alert the U.K. that I've made a purchase and the details of it. Even if I didn't declare it, should I expect to receive an invoice from the U.K. government wanting me to pay 20% VAT and any other import duties on my purchase?
Although I've seen tourists claiming tax back in shops and airports in the U.K. I'm very confused as to how the whole process works.
Can someone explain please?