Measure
The government proposes to introduce a new modern digital VAT-free shopping scheme for non-UK visitors to Great Britain, allowing them to obtain a refund on goods bought in the high street and at airports, and exported from the UK in their personal baggage. The scheme that currently operates in Northern Ireland (which continues to allow VAT-free shopping for visitors from outside the EU) will also be modernised.
The measure will principally affect non-UK visitors to Great Britain, and retailers that sell goods to them.
The new digital scheme for Great Britain is to be introduced “as soon as possible” following a consultation on its design.
As set out in RCB 21(2020), the Retail Export Scheme (RES) in Great Britain and a concession allowing airside tax-free shopping were withdrawn on 31 December 2020. It appears that RES is to be reintroduced. It will be interesting how the new scheme will ensure equality of treatment for retailers and tourists in both Great Britain and Northern Ireland, and how it will in practice operate for visitors from the Republic of Ireland. The timeline of these changes will be avidly watched by the retail industry and tourists alike.