UK. The UK government has launched a consultation on the country’s long-term approach to duty free and tax free sales in the wake of Brexit.
Documentation has been released outlining potential scenarios and calling for “evidence and views” on the main issues of allowances and in what areas duty and tax free sales might be reintroduced.
Opinions are also being sought on the VAT Retail Export Scheme, which allows certain non-UK residents to obtain a VAT refund on high street goods they buy and take home with them in their luggage.
The UK Travel Retail Forum (UKTRF) has welcomed the consultation, which it says “represents the clearest-yet opportunity for the travel retail industry to make clear the substantial economic and consumer benefits a fully-fledged duty and tax free post-Brexit regime could deliver for the UK”.
UKTRF Chair Francois Bourienne commented: “The UKTRF welcomes the opportunity to respond to the government’s consultation on the post-Brexit duty and tax free regime.
“The return of duty and tax free sales for passengers travelling from the UK to the EU by air, sea or train will delivery substantial economic benefits and new jobs right across the UK, as well as delivering new options and experiences for travellers heading to the continent for work or leisure.
“A recently completed independent economic analysis has concluded the full return of duty and tax free sales in the aviation industry alone could contribute as much as £1.1 billion (US$1.4 billion) to the UK economy, and generate over 10,300 direct and indirect jobs up and down the country.
“The chancellor’s announcement is a positive step forward, but the UKTRF is well aware of the work required in the months ahead to ensure we achieve the policy outcome the industry wants and needs in order to remain competitive with its EU counterparts.
“While UKTRF will of course be making a detailed submission on behalf of the industry, we will also be encouraging all of our members to put forward their own views as key contributors to the UK travel and transport sector.
“UKTRF has been a strong supporter of the return of duty and tax free after Brexit since the referendum of 2016. We appreciate the government’s willingness to engage with the industry on this important issue and will be working constructively with ministers and officials as the policy is developed.”
The consultation, which closes on 20 May 2020, poses 16 key questions:
Q1. The government would welcome any evidence or views on reintroducing duty free and tax free personal allowances to passengers travelling from the EU to the UK, including the impacts that these could have.
Q2. The government would welcome views on whether the current personal allowances for alcohol and tobacco imports should remain the same or should be changed, and if so why?
Q3. Do you agree that the government should extend duty free sales to those travelling to the EU?
Q4. The government would welcome any evidence or views on the impacts that a return of duty free sales for passengers travelling from the UK to the EU could have.
Q5. The government would welcome any evidence or views on the impacts that an introduction of duty free sales for passengers travelling to the EU at ports, airports and international train stations could have.
Q6. The government would welcome any evidence and views on the impact of allowing duty free sales for passengers to the EU onboard trains.
Q7. The government would welcome any evidence and views of the impact of allowing duty free sales for passengers and crew onboard planes and ships destined for the EU.
Q8. The government would welcome any evidence or views on the current structures, practices and benefits of the VAT Retail Export Scheme (VAT RES).
Q9. What additional benefits would there be to an extension of the VAT RES to EU residents in its current, or digital form?
Q10. The government would welcome any evidence or views on alternative and/or more effective ways of operating the VAT RES.
Q11. The government would welcome any evidence or views on the impacts of abolishing the VAT RES.
Q12. Do you agree that the government should extend airside tax free sales for non-excise goods to passengers travelling to the EU?
Q13. The government would welcome any evidence or views on the impacts of abolishing airside tax free sales.
Q14. What additional benefits would there be to an extension of airside tax free sales to EU bound passengers?
Q15. What do you think the impacts of introducing tax free sales for non-excise goods for passengers travelling from the UK to the EU could have?
Q16. The government would welcome any evidence or views on the impacts that an introduction of tax free sales at international train stations could have.
The full consultation documentation can be viewed here.
