The system, experts say, hinders the country from becoming a major shopping destination. (Photo : Getty Images)
United Kingdom's tax refund system has been under criticism by tourism experts and visitors alike, according to an article by China Daily. Detractors, which include Chinese tourists, say that the country's tax refund system is "time-consuming and too complex."
Although the system, which was implemented in 1995, allows tourists from non-EU countries to claim value-added tax from any purchases made within the U.K., experts say that it hinders the country from becoming a major shopping destination.
"Shopping is a huge part of many tourists' visits to Britain. A simple and slick VAT refund scheme would make us a more attractive destination for high-spending visitors, including the Chinese, who are some of our highest spenders," said Patricia Yates, director of U.K.'s official tourism board, VisitBritain.
Through the tax refund system, non-EU residents and tourists can file for a VAT refund for any goods purchased within the country's territory when they leave the U.K..
Theoretically, it is a simple process: one must fill out a form, and together with receipts, present it to a refund booth.
In real life, however, the process has proved to be time-consuming, especially for travelers who need to pass through equally tedious security checks.
Aside from being laborious, the process has to go through numerous stops such as companies and airport counters, which also means tourists must pay what some people claim to be exorbitant fees.
This was the case with Chen Lizhi, a Chinese graduate of Longbourough University, who went on a 4,000-pound shopping spree in the U.K. She paid 700 pounds in VAT.
"I ended up receiving a refund of just 368 pounds," Chen said in an interview with China Daily. "I didn't expect there'd be an additional handling fee at the airport counter, as a big chunk had already been taken out at the time of the purchase. Also, the currency exchange rate at the refund desk is low compared with high-street rates."
"I may hesitate to shop again in London as the cost of getting a refund is too high," Chen added.
