Updated for 2026
If you’re planning to shop during your trip to London, it’s helpful to understand how UK tax-free shopping works today.
In the past, overseas visitors could claim a VAT refund in London on goods purchased in stores and taken home in their luggage. However, post-Brexit tax reforms mean these tourist tax refunds are no longer available for most in-store purchases.
Here’s an overview of what’s changed, what the current rules are and what it means for visitors. We’ve also covered alternatives such as "Shop & Ship" services, along with helpful tips for making the most of your shopping trip in London.
Tax-free shopping in London: a guide for tourists 2026
Can tourists claim VAT in London?
The shops of Oxford Street and beyond draw in millions of international tourists a year and many want to know: is there tax-free shopping in London?
It’s not currently possible to get a VAT refund in London on goods bought in-store and taken home in your luggage as the UK government removed the VAT Retail Export Scheme in 2021.
This means that for typical purchases, such as clothing, electronics or souvenirs, as an international tourist, you’ll pay VAT, which is already included in the displayed price.
There are still a few situations where you might be able to shop tax-free in the UK. These include:
- Goods that are purchased online and shipped directly overseas by the retailer.
- Specific duty-free purchases made at airports.
Policies tend to vary by retailer, so it’s always worth checking with the store before making a purchase.
Why the UK ended VAT refunds for tourists
The UK government ended the VAT Retail Export Scheme in 2021 following changes to tax policy after Brexit. The reason given for ending the scheme was to simplify the tax system and reduce administrative costs.
Before this change, non-EU visitors could claim a tax refund in London on eligible purchases when leaving the country. After the scheme was removed, tax-free shopping for tourists in the UK largely ended for in-store purchases.
While traditional VAT refunds are no longer available in most cases, alternative options such as shipping purchases abroad still exist.
"Shop and ship" options for international shoppers
Although traditional VAT refunds in London are no longer available for most in-store purchases, many retailers offer international shipping services that allow you to buy items in London and have them shipped directly to your home country, tax-free.
When goods are exported overseas by a retailer, UK VAT (currently 20%) can often be removed from the purchase price. This means visitors may still be able to shop tax-free in London, provided the items are delivered internationally rather than taken home in your luggage.
This option is most commonly available at large department stores and luxury retailers including:
It’s worth noting that not all retailers offer export shipping and some items or brands might be excluded. You may also have to pay import tax or duties in your home country.
Will tax-free shopping return to the UK?
Whether tax-free shopping will return to London and the UK is still uncertain. Retail groups and tourism organisations have called for the government to reintroduce VAT refunds for tourists. They argue that tax-free shopping can encourage tourism spending and support major retail destinations.
At the moment, there are no confirmed plans to restore the VAT Retail Export Scheme.
Tips for tax-free shopping in London for tourists
If you’re still wondering how to claim a VAT refund in London or make your next shopping trip more affordable, you do have some options.
Here are a few helpful tips for your next visit:
- Check whether a retailer offers international shipping.
- Compare prices online before buying larger items.
- Shop before you fly – you can still make duty-free purchases at all London airports.
- Plan your shopping trip by exploring our guide to London shopping.
- Find popular retail outlets and best shops by area in our where to go shopping in London guide.