VAT Relief Program eases financial burden of living in UK

  • Published
  • By Staff Sgt. Austin M. May
  • 100th Air Refueling Wing Public Affairs
RAF MILDENHALL, England --  Fluctuating exchange rates, multiple taxes and import fees are only a few factors contributing to the higher cost of living for Americans serving in the United Kingdom.

To ease the financial burden on eligible members living here, the 100th Force Support Squadron offers the Value Added Tax Relief Program, which allows vendors to waive the 17.5 percent VAT added to many goods and services.

Almost every American citizen stationed in the UK on official orders is eligible for the VAT Relief Program, including servicemembers, their families and civilians working for the government here.

"Basically, anyone issued an alcohol and tobacco rations card is eligible for VAT relief," said Allan Costello, 100th FSS payroll technician.

The program is simple to use - Before making a purchase of 100 pounds or more, including VAT, the consumer should ask the vendor if they participate in the program. Mr. Costello said many local businesses do, but the choice falls to the business owner, and not all are willing to make the concession.

Once it is established that a vendor does participate, the consumer should request a pro forma invoice, made out to "FSS fund," stating the total price of the purchase without VAT. No payment should be made to the actual vendor. The invoice should be turned in to the VAT Relief Program clerk at the 100th FSS headquarters building.

Along with the invoice, the customer must provide payment by either cash or cashier's check only, and it must be in Great Britain Pounds. A small fee, the amount of which is determined by the member's rank or pay grade, must also be submitted.

Invoices and payments are accepted for processing from 8 a.m. to 2:30 p.m. during regular duty days. Mr. Costello said invoices turned in before noon will be returned after 2 p.m. the same day - any invoices turned in after noon can be collected after 8 a.m. the following business day.

What the member actually receives is a check, made out to the vendor, and a two-part certificate. One copy of the certificate is for the vendor's records, and the other must be signed by the vendor and returned to the VAT Relief Program office no later than two weeks from the day the transaction is completed.

"Sometimes people don't bring in the paperwork after the sale," Mr. Costello said. Members who fail to return the required paperwork can be barred from the program, he explained.

The list of products and services can be somewhat confusing, and people interested in using the program should check with the VAT Relief Program office before committing to a purchase, said Gary Butcher, 100th FSS accounts technician.

As a rule of thumb, almost anything which can be shipped from the UK to the United States in a household goods shipment is authorized, as well as many services. Two purchases - homes and motor vehicles - are ineligible for the program. However, most repairs to either can be covered. Some larger items, such as sheds up to a certain size, are eligible, according to Mr. Butcher.

"We've even done a Jacuzzi," he added as an example.

Any purchases not directly addressed by the regulations governing the program are sent to the 100th Air Refueling Wing Legal Office for approval.

There is no limit to the number of times a customer can use the VAT Relief Program, as long as they obey the rules associated with it. Private organizations are ineligible, as are those who may be purchasing items for resale.

For more information or to inquire about the eligibility of purchases, call DSN 238-2976.