Hotel VAT relief available for official UK travel Published May 10, 2013 By 1st Lt. Carolyn Glover U.S. Air Forces in Europe-United Kingdom Public Affairs ROYAL AIR FORCE LAKENHEATH, England -- U.S. servicemembers and civilians traveling on official orders may now avoid paying Value Added Tax when billeted off-base in non-contract quarters in the United Kingdom. "We were able to reach an agreement with Her Majesty's Revenue and Customs to simplify procedures for U.S. Force military and civilian personnel on official travel in the UK," said Carol Hubbard, U.S. Air Forces in Europe-United Kingdom legal advisor. "This new process will make it easier for the U.S. Forces to obtain the VAT-free entitlements for non-contract quarters provided for under the Status of Force Agreement. This could save thousands of dollars annually." Previously, the only available procedure to obtain VAT-free lodging off-base was through official contracted facilities. Non-contracted facilities were not accounted for in the VAT-free scheme. The new process requires approval and verification from a base lodging office. When members travel on official orders, the lodging office will try to provide on-base accommodations. If on-base lodging is unavailable, lodging personnel will contact local contract hotels, beginning with hotels closest to the installation. If contract quarters are unavailable, lodging personnel will review the member's travel orders to ensure they are on official duty. Members receiving statements of non-availability (when not lodged or base or through contracted accommodations) will receive the VAT exemption letter. This letter must be provided to the hotel upon arrival. The tax exemption will cover the tax on lodging and breakfast, if included in the rate. It will not cover additional food, beverages or other services. The only exception to this process is for those traveling to RAF Menwith Hill, which does not have a lodging office. The VAT office there will issue the letter to official duty travelers. For more information about the VAT exemption process, contact RAF Lakenheath lodging at 01638-526700.