If you’re planning a shopping trip to Scotland or wondering whether you can reclaim tax on your holiday purchases, the question naturally arises: Does Scotland have a VAT refund system? The short answer is yes — but with important conditions. Since Scotland is part of the United Kingdom, VAT (Value Added Tax) follows UK-wide legislation, and refunds are only available to eligible non-UK residents under specific schemes.
This guide explains everything you need to know, including how VAT works, what you can buy tax-free, and how to claim your refund when leaving the country.
What is a VAT tax?
VAT, or Value Added Tax, is a consumption tax applied to most goods and services purchased within the UK.
- The standard VAT rate is 20%, applied to most retail products.
- A reduced rate of 5% applies to certain items such as children’s car seats and home energy.
- Zero-rated items include most food, books, and children’s clothing — although they are still technically VAT-taxable at 0%.
VAT is already included in the price you pay in shops, restaurants, and hotels.
Visitors don’t see it added at checkout like in the United States, which is why a refund may not be immediately apparent.
Traditionally, non-EU visitors could shop tax-free under the Retail Export Scheme, which allowed VAT to be reclaimed when goods were exported. However, this scheme was withdrawn by the UK Government in January 2021 following Brexit.
That said, VAT refunds are still possible, but only in specific situations such as:
- Purchases shipped directly overseas by the retailer (known as ‘overseas exports’)
- VAT refunds on certain services used outside the UK
- Business-related VAT claims under international schemes
Therefore, while you can’t simply shop and claim VAT back at the airport anymore, there are still routes to reclaim tax - but they require forward planning.
What to buy in Scotland
Scotland is renowned for its craftsmanship, heritage brands and artisan products, making it a prime destination for quality goods. Here are some of the most popular items travellers seek — many of which are eligible for VAT refunds if shipped abroad:
- Whisky and Gin – Premium single malts and craft spirits from distilleries like Glenfiddich, Laphroaig and The Macallan are world-famous souvenirs. To get a VAT refund alcohol must usually be shipped directly by the retailer to qualify for VAT exemption rather than being carried in your luggage.
- Cashmere and Woollens – Scottish cashmere from brands such as Johnstons of Elgin and Pringle of Scotland is globally prized. Blankets, scarves and jumpers are commonly exported tax-free through high-end boutiques.
- Celtic Jewellery – From traditional Claddagh rings to modern silver designs by Skye and Orkney artisans.
- Art & Antiques – Many specialist dealers offer export documentation to remove VAT if the item leaves the UK.
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- Harris Tweed - Authentic handwoven outerwear, bags and accessories bearing the official orb certification mark
- Golf Equipment – Scotland, being the “Home of Golf,” top brands often work with international shipping services.
- Highland Wear – Kilts, sporrans and full formal outfits can be custom-made and dispatched overseas VAT-free.
If you are planning significant purchases, ask the retailer before buying whether they can process an export sale. Many larger shops and luxury brands already have the system in place.
How to get a VAT refund in Scotland?
With traditional airport VAT kiosks no longer operating for personal luggage purchases, there are now two primary methods for claiming VAT back in Scotland:
For individuls - buy from retailers offering ‘VAT-free export sales’
To qualify for VAT-free export sales you need to permanently live overseas.
Some Scottish retailers, particularly whisky shops, cashmere boutiques and jewellers, allow tax-free purchasing if they ship your goods directly to your home country.
In this case:
- You pay net of VAT at the till.
- The goods are exported on your behalf, never entering your possession in the UK.
- No refund process is needed, as VAT isn’t charged in the first place.
This is the easiest and most reliable method of avoiding VAT as a tourist.
For businesses - claim via the Overseas Refund Scheme (For Businesses only)
If you’re a non-UK business owner attending events or making purchases for business purposes, you may be eligible to reclaim VAT on such things as business equipment, conference fees and accommodation.
This is done through a formal application to HM Revenue & Customs (HMRC) after departure. It is not designed for casual tourists but for registered businesses outside the UK.
What about VAT refunds at airports?
VAT refund desks no longer operate at UK airports for general retail purchases. This includes Edinburgh, Glasgow and Inverness airports.
However, duty-free shops inside the departure lounge still offer tax-free prices on alcohol, perfume, tobacco products, and cosmetics. These discounts are separate from VAT refunds and only apply to sealed items purchased after security.
Since 1 January 2021, the UK government ended tax-free shopping (VAT refunds) on most goods (electronics, clothing, cosmetics, etc.) bought in the UK for travellers to take home.
Can I reclaim VAT on a tour of Scotland?
Most one-day tours, where admission fees or meals aren’t included, are zero-rated, so although there is a VAT element, it’s at 0%.
This includes tours featuring travel by rail, such as the Jacobite Steam Train.
What about multi-day tours where accommodation is included in the price? Can I claim back the VAT? No, is the short answer. You generally cannot reclaim VAT on a tour of Scotland (or anywhere in the UK). Here’s why:
- Tour services are considered “consumed in the UK”
VAT (Value Added Tax) is applied to most services provided within the UK, which includes guided tours, transport, accommodation, and attraction entries that form part of a tour package.
Even if you live outside the UK (for example, in the United States, Canada, or Australia), the service of a tour of Scotland is used and enjoyed within the UK, so it’s not eligible for VAT refund under HMRC rules.
- UK tours are sold under the Tour Operators Margin Scheme (TOMS)
Most reputable UK travel companies, including Scottish tour providers, operate under a system called the Tour Operators Margin Scheme (TOMS) where VAT is charged only on the profit margin of the tour, not on each individual component (like hotels or tickets). Under theTOMS system rules, VAT cannot be itemised or reclaimed by the traveller — even for non-UK residents.
So, even though VAT is included in the price you pay for your tour, it is not reclaimable because the tour operator, not the traveller, is the taxable entity under this scheme.
So, if you book a Highlands and Islands tour or a 3-day Isle of Skye adventure, you’ll see one all-inclusive price - there’s no VAT breakdown and, unfortunately, no refund eligibility.
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