how do you return the uk vat back to foriegn buyers who qualify for uk vat free purchases

hi all

as a vat registered buisness seller , my items all include uk vat at 20 per cent and declared so by ticking the vat included  checkbox ,

so when a buyer from lets say italy purchases an item, hes paid the full amount including uk vat ,what is the correct procedure to return the excess 20 per cent of the item price back to him 

do i simply work out the vat element of the item price and refund that back to him via the send buyer a refund button 

and another question , what about the postal amount , how does the vat work on that 

hoping for some clarity on here

many thanks in advance

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red_magpie
Experienced Mentor

EBay does not offfer a VAT-free facility. As with shops that don't, it would be for the buyer to apply for a VAT refund through any arrangement that may exist with the tax authorities. Otherwise, it isn't up to individual sellers to refund VAT.

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