UK to bring back tax free shopping for overseas visitors

UK. In a startling u-turn which will be widely welcomed by the British retail community and tourism sector stakeholders, the government is to bring back tax free shopping for overseas visitors.

The move was announced in the Growth Plan 2022 speech delivered by Chancellor Kwasi Kwarteng today.

“Britain welcomes millions of tourists every year, and I want our high streets and airports, our ports and our shopping centres, to feel the economic benefit,” he said.

“So we have decided to introduce VAT-free shopping for overseas visitors. We will replace the old paper-based system with a modern, digital one. And this will be in place as soon as possible.

“This is a priority for our great British retailers – so it is our priority, too.”

Richard Gill: The decision presents Birmingham Airport’s retail partners with an equal playing field compared with their international rivals

Birmingham Airport Commercial Director Richard Gill applauded the decision. He said: “Birmingham Airport welcomes today’s announcement by the Chancellor on the reintroduction of a VAT-free shopping scheme on goods purchased from airside retail stores at airports, the UK high street and other departure points for non-UK visitors.

“This is most welcome as the re-introduction of tax free shopping in airports will be a further boost to the recovery of our industry following the pandemic and will enable our retail partners to compete with their counterparts across the world. We look forward to seeing further details of the scheme in due course.”

The UK Travel Retail Forum also warmly welcomed the announcement, noting that the UK Government intends to reintroduce a VAT-free shopping scheme on goods purchased on the High Sreet and past security control points at airports and other departure points for non-UK visitors.

UKTRF Chair Nigel Keal said: “This is a fantastic announcement by a government that has been clear from the start of its intention to put aside Treasury orthodoxy and find new ways to generate growth for the UK economy and industries. The travel retail industry welcomes today’s news.

“When the previous Government removed tax free shopping as a part of Brexit, the effects on a travel sector already struggling with the COVID pandemic were substantial. The restoration of tax free shopping will be a boost to the recovery of our industry, and will put UK travel retailers on a level footing with their competitors around the world.

“We look forward to working with HM Treasury and HM Revenue and Customs to provide input on the finer details of the scheme, and we absolutely look forward to providing a top-class tax free shopping service to our customers once again.”

How The Moodie Davitt Report covered the shocking original decision to stop tax free sales in the UK. Click on the image to read.
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