Mini-Budget: VAT on retail exports

Published by Colin Laidlaw on 23 September 2022

Share this article

The Government has announced that it will introduce a modern, digital, VAT-free shopping scheme with the aim of providing a boost to the high street and creating jobs in the retail and tourism sectors. A consultation will be issued shortly which will gather views on the approach and design of the scheme. This new VAT-free shopping scheme for non-UK visitors to Great Britain will enable them to obtain a VAT refund on goods bought in the high street, airports and other departure points and exported from the UK in their personal baggage.

We expect this to be similar to the Retail Export Scheme which operated up until 31 December 2020. This allowed non-EU residents to claim a refund of VAT on retail sales when taken home in their luggage. The system was laborious requiring forms to be stamped at point of exit and returned to the retailer but was popular amongst tourists. One might hope the new scheme will make the process simpler.

It isn’t necessarily a completely tax free solution to visitors as domestic tax may be due on the country of the shopper (as would be the case in the UK) but it would encourage sales in the UK.

Further information on this will follow. In the meantime, if you have any VAT queries, please get in touch.

Share this article

Close

Email Colin

    • yes I have read the privacy notice and am happy for Kreston Reeves to use my information





    View teamSubscribe

    Close Expand

    Subscribe to our newsletters

    Our complimentary newsletters and event invitations are designed to provide you with regular updates, insight and guidance.

      • Business, finance and tax issuesPersonal finance, tax, legal and wealth management issuesInternational business issuesCharity and not-for-profit issues
      • Academies and educationAgricultureFinancial servicesLife sciencesManufacturingProfessional practicesProperty and constructionTechnology
      • yes I agree I have read and accept the privacy policy and am happy for Kreston Reeves email communications I have selected above





      You can unsubscribe from our email communications at any time by emailing [email protected] or by clicking the 'unsubscribe' link found on all our email newsletters and event invitations.