The next step

A consultation on the potential approach to duty-and tax-free goods

[Document]

VAT Export and Removal of Goods from the UK

[Weblink]

Tax-free shopping to end

No more refunds. At the end of September the government announced the end of the VAT Retail Export Scheme (VAT RES) with effect from 1 January 2021. This means that overseas visitors will no longer be entitled to a VAT refund on items they buy in England, Scotland or Wales which they take home in their luggage. The decision was made after a public consultation which addressed several key questions regarding VAT RES (see The next step ). However, the change doesn’t mean the end of VAT-free sales.

Retail export. If you’re a retailer, you will still be allowed to offer VAT-free shopping (zero-rated) to non-EU visitors who buy items and have them sent directly to their overseas address, subject to the usual rules (see The next step ).

For links to the consultation and HMRC’s guidance, visit http://www.tips-and-advice-tax.co.uk , Download Zone, year 21, issue 02.