BREXIT: END OF CURRENT TAX-FREE SALES AND VAT RETAIL EXPORT SCHEME

On 11 September, HMRC confirmed that it was ending the practice of  tax-free sales in airports of goods such as electronics and clothing for passengers travelling to non-EU countries, following concerns that the tax-concession is not always passed on to consumers in the airport.  In some instances, it says, these tax-free goods are brought back into the country by UK residents, putting high street retailers at a disadvantage.  As a result of the changes, the ability to claim VAT refunds for overseas visitors for purchases from British shops will be removed.  Overseas visitors will still be able to buy items VAT-free in store and have them sent direct to their overseas addresses – but they will not be able to take the goods with them, and the system of claiming VAT refunds on items they take home in their luggage will be ended.

https://www.gov.uk/government/news/duty-free-extended-to-the-eu-from-january-2021

see also the consultation response –

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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