In the UK Chancellor’s recent mini-budget, Kwasi Kwarteng announced that the UK is to reintroduce a new version of the VAT Retail Export Scheme that will allow tax free shopping for overseas visitors.
When the United Kingdom left the European Union due to Brexit, the VAT Retail Export Scheme, also known as VAT-free Shopping Scheme, was withdrawn on 1 January 2021. This scheme allowed non-EU travellers to recover VAT on their purchases from shops on the high street, ports and airports as they were leaving the country to return home.
The withdrawal of the scheme has had a negative impact on both the retail and travel industries. Some major retail brands have raised their voices to create awareness about the potential reintroduction of the scheme to attract more tourists and increase economic activity in Great Britain. The scheme is still in place in Northern Ireland.
Source: SOVOS
